Navy Awards $125M for P-8A Aircraft Hardware, Sole-Source to Boeing
Contract Overview
Contract Amount: $125,469,207 ($125.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-12-11
End Date: 2025-07-17
Contract Duration: 1,679 days
Daily Burn Rate: $74.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: P-8A NZ WTT HW
Plain-Language Summary
Department of Defense obligated $125.5 million to THE BOEING COMPANY for work described as: P-8A NZ WTT HW Key points: 1. Significant contract value of $125.47 million awarded. 2. Sole-source award to The Boeing Company indicates limited competition. 3. Potential risk associated with single-source procurement and long contract duration. 4. Spending falls within the Defense sector, specifically for aircraft sustainment.
Value Assessment
Rating: fair
The contract value of $125.47 million for P-8A aircraft hardware is substantial. Without specific unit details or comparable contract data, a precise pricing assessment is difficult. However, given the specialized nature of military aircraft components, costs can be expected to be higher than commercial equivalents.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This approach can lead to higher prices as there is no market pressure to reduce costs. The lack of competition limits price discovery and potentially reduces the government's leverage.
Taxpayer Impact: The sole-source nature of this award may result in taxpayers paying a premium for the P-8A hardware, as competitive bidding was bypassed.
Public Impact
Ensures continued operational readiness of the P-8A Poseidon maritime patrol aircraft. Supports critical defense capabilities for the Department of the Navy. Impacts the aerospace and defense manufacturing sector, specifically Boeing's supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Long contract duration (over 5 years)
- Lack of publicly available benchmark data
Positive Signals
- Supports critical defense asset sustainment
- Awarded to a known, experienced prime contractor
Sector Analysis
This contract falls under the Defense sector, specifically for specialized aircraft hardware. Spending benchmarks for similar sole-source aircraft component contracts are highly variable and depend on the specific system and components. The $125.47 million award is significant for this niche.
Small Business Impact
The awardee is The Boeing Company, a large prime contractor. There is no indication in the provided data that small businesses were involved as subcontractors or prime contractors in this specific award. Further investigation would be needed to determine any small business participation.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. The sole-source nature warrants scrutiny to ensure fair pricing and necessity. Accountability relies on robust internal review processes within the Navy to validate the justification for not pursuing competition.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price competition.
- Long contract duration may not reflect current market prices.
- Lack of transparency on specific hardware components and their costs.
- Potential for vendor lock-in with specialized parts.
Tags
other-commercial-and-service-industry-ma, department-of-defense, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $125.5 million to THE BOEING COMPANY. P-8A NZ WTT HW
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $125.5 million.
What is the period of performance?
Start: 2020-12-11. End: 2025-07-17.
What is the specific justification for the sole-source award of this P-8A hardware contract?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the unavailability of other sources that can meet the government's requirements. For specialized military aircraft components like those for the P-8A, it's often argued that only the original equipment manufacturer or a highly specialized supplier can provide the necessary parts due to stringent specifications, testing, and integration requirements.
How does the lack of competition impact the potential for cost overruns or inflated pricing for this hardware?
A lack of competition significantly increases the risk of cost overruns and inflated pricing. Without competing bids, the government loses a key mechanism for price discovery and negotiation. The sole-source provider faces less pressure to be efficient or offer competitive pricing, potentially leading to higher costs for taxpayers compared to a fully competed contract.
What is the long-term strategic value of this sole-source contract for the P-8A program's sustainment?
The long-term strategic value lies in ensuring the continued operational readiness and effectiveness of the P-8A fleet. By securing necessary hardware through this contract, the Navy maintains its maritime patrol and reconnaissance capabilities. However, the sole-source nature raises questions about long-term cost-effectiveness and the potential for developing alternative sources or fostering competition in the future.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6134019R0009
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $136,384,782
Exercised Options: $125,469,207
Current Obligation: $125,469,207
Subaward Activity
Number of Subawards: 93
Total Subaward Amount: $33,681,130
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6134019G0002
IDV Type: BOA
Timeline
Start Date: 2020-12-11
Current End Date: 2025-07-17
Potential End Date: 2025-07-17 00:00:00
Last Modified: 2025-09-30
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