DoD Awards Boeing $91.5M for Aviation Support Systems, Lacking Competition
Contract Overview
Contract Amount: $91,497,195 ($91.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2010-09-03
End Date: 2015-12-31
Contract Duration: 1,945 days
Daily Burn Rate: $47.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MANUFACTURE, TEST AND DELIVERY OF UP TO 35 AN/USM-702 RECONFIGURABLE TRANSPORTABLE CONSOLIDATED AUTOMATED SUPPORT SYSTEMS (RTCASS), PART NUMBER 3841AS0101-01. IT ALSO INCLUDES UP TO 22 SELF MAINTENANCE AND TEST CALIBRATION (SMAT/CAL) INTERFACE DEVICES, AND 26 MULTI ANALOG CAPABILITY (MAC/COSSI) WIRING KITS. THE CONTRACT ALSO INCLUDES TIME AND MATERIAL CLINS TO PROVIDE ENGINEERING AND TECHNICAL SERVICES AS NEEDED TO ADDRESS ANY ENGINEERING CHANGE PROPOSALS (ECPS) TO THE GOVERNMENT S TECHNICAL DATA PACKAGE (TDP) REQUIRED DURING THE PRODUCTION PERIOD
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $91.5 million to THE BOEING COMPANY for work described as: MANUFACTURE, TEST AND DELIVERY OF UP TO 35 AN/USM-702 RECONFIGURABLE TRANSPORTABLE CONSOLIDATED AUTOMATED SUPPORT SYSTEMS (RTCASS), PART NUMBER 3841AS0101-01. IT ALSO INCLUDES UP TO 22 SELF MAINTENANCE AND TEST CALIBRATION (SMAT/CAL) INTERFACE DEVICES, AND 26 MULTI ANALOG CAPABI… Key points: 1. The contract focuses on specialized aviation support systems, crucial for aircraft maintenance and testing. 2. Boeing secured this significant award without a competitive bidding process. 3. The primary risk lies in the lack of competition, potentially leading to suboptimal pricing. 4. The sector is defense manufacturing, specifically electronic and precision equipment.
Value Assessment
Rating: questionable
The total award value is $91.5 million for a complex system. Without competitive benchmarks, it's difficult to definitively assess pricing fairness. The firm-fixed-price structure provides some cost certainty, but the lack of competition raises concerns about whether the government secured the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and negotiation leverage for the government, potentially resulting in higher costs than if multiple vendors had bid.
Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for these critical aviation support systems.
Public Impact
Essential for maintaining readiness of advanced military aircraft. Supports complex diagnostic and repair functions for aviation systems. Ensures specialized equipment is available for critical defense operations. Potential for higher costs due to sole-source nature impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for inflated pricing
Positive Signals
- Critical defense capability
- Firm-fixed-price contract
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on specialized test and support equipment for aviation. Spending benchmarks in this niche area are hard to establish without comparable competitive procurements, but large sole-source awards warrant scrutiny.
Small Business Impact
The data indicates this contract was awarded to The Boeing Company and does not mention any small business participation. There is no indication of subcontracting efforts aimed at small businesses within this sole-source award.
Oversight & Accountability
The contract was awarded by the Department of Defense, with oversight likely managed by the Defense Contract Management Agency. The sole-source nature suggests a justification was provided, but further oversight would focus on ensuring the contractor meets all delivery and quality requirements without competitive pressure.
Related Government Programs
- Other Measuring and Controlling Device Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpricing
- Limited transparency in award justification
- No small business participation noted
Tags
other-measuring-and-controlling-device-m, department-of-defense, mo, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $91.5 million to THE BOEING COMPANY. MANUFACTURE, TEST AND DELIVERY OF UP TO 35 AN/USM-702 RECONFIGURABLE TRANSPORTABLE CONSOLIDATED AUTOMATED SUPPORT SYSTEMS (RTCASS), PART NUMBER 3841AS0101-01. IT ALSO INCLUDES UP TO 22 SELF MAINTENANCE AND TEST CALIBRATION (SMAT/CAL) INTERFACE DEVICES, AND 26 MULTI ANALOG CAPABILITY (MAC/COSSI) WIRING KITS. THE CONTRACT ALSO INCLUDES TIME AND MATERIAL CLINS TO PROVIDE ENGINEERING AND TECHNICAL SERVICES AS NEEDED TO ADDRESS ANY ENGINEERING CHANGE PROPOSALS (ECPS) TO THE GOVERNMENT S TECHNICAL DA
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $91.5 million.
What is the period of performance?
Start: 2010-09-03. End: 2015-12-31.
What was the justification for awarding this contract sole-source, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. Without access to the specific contract file, it's impossible to detail the exact justification. However, the government should have explored if any other manufacturers could meet the technical requirements, even if modifications were needed, to ensure fair pricing.
How does the per-unit cost of these support systems compare to similar, competitively procured systems, if any exist?
Direct comparison is challenging due to the specialized nature of the AN/USM-702 RTCASS and the lack of competitive bidding. If similar systems were procured competitively, their pricing would serve as a benchmark. The absence of such benchmarks in this sole-source award makes it difficult to ascertain if the government received optimal value for its investment.
What measures are in place to ensure the long-term effectiveness and maintainability of these systems, given the lack of competitive pressure on the manufacturer?
Effectiveness and maintainability are typically ensured through stringent contract requirements, performance metrics, and government acceptance testing. For sole-source contracts, robust government oversight of technical data packages, engineering change proposals, and contractor performance is crucial. Regular reviews and potential future competitive procurements for upgrades or replacements can also drive long-term value.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Other Measuring and Controlling Device Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6833510R0124
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6200 J S MCDONNELL BLVD, SAINT LOUIS, MO, 63134
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $91,550,610
Exercised Options: $91,550,610
Current Obligation: $91,497,195
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-09-03
Current End Date: 2015-12-31
Potential End Date: 2015-12-31 00:00:00
Last Modified: 2020-05-07
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)