DoD Awards Boeing $30.8M for P-8A Aircraft Test Sets, No Competition
Contract Overview
Contract Amount: $30,880,590 ($30.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-09-18
End Date: 2024-09-19
Contract Duration: 1,828 days
Daily Burn Rate: $16.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: OPERATIONAL TEST PROGRAM SETS FOR THE P-8A AIRCRAFT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $30.9 million to THE BOEING COMPANY for work described as: OPERATIONAL TEST PROGRAM SETS FOR THE P-8A AIRCRAFT Key points: 1. Significant contract value for specialized aircraft testing equipment. 2. Sole-source award to Boeing raises questions about competition and pricing. 3. Long contract duration (5 years) suggests ongoing need for these test sets. 4. Focus on P-8A platform indicates a specific defense program requirement.
Value Assessment
Rating: questionable
The contract value of $30.8M over 5 years for specialized test sets is difficult to benchmark without more data on similar systems. The lack of competition makes a direct price comparison challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this $30.8M contract may result in higher costs for taxpayers compared to a competitively awarded contract.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long-term nature of the contract could lock in potentially inflated prices. Dependence on a single supplier for critical testing equipment poses a risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Supports critical defense platform (P-8A)
- Established contractor with relevant expertise
Sector Analysis
This contract falls under the 'Other Measuring and Controlling Device Manufacturing' sector. Defense spending in this area is often characterized by high complexity and specialized requirements, leading to higher costs and limited competition.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of small business participation in this specific award, which is common for sole-source, specialized equipment contracts.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure fair pricing and justification for the lack of competition. Transparency in the justification for non-competition is crucial.
Related Government Programs
- Other Measuring and Controlling Device Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for overpricing
- Long contract duration without clear performance milestones
- Limited transparency on justification for non-competition
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 $30.9 million to THE BOEING COMPANY. OPERATIONAL TEST PROGRAM SETS FOR THE P-8A AIRCRAFT
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 $30.9 million.
What is the period of performance?
Start: 2019-09-18. End: 2024-09-19.
What is the justification for awarding this contract on a sole-source basis to Boeing?
The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or the absence of other capable sources. For specialized test equipment tied to a specific platform like the P-8A, Boeing might argue they are the only entity with the necessary design knowledge and integration expertise to develop and produce these sets efficiently.
What are the potential risks associated with a sole-source contract for operational test sets?
The primary risks include inflated pricing due to lack of competition, potential for vendor lock-in, and reduced incentive for the contractor to innovate or improve efficiency. Taxpayers may bear higher costs, and the government could face challenges if the sole-source provider experiences production issues or significantly increases prices in future contract modifications.
How does this contract contribute to the overall effectiveness of the P-8A aircraft program?
Operational test sets are crucial for ensuring the P-8A aircraft and its systems function correctly and meet performance requirements before deployment. These sets allow for realistic testing scenarios, identifying potential defects or performance shortfalls. Reliable test sets directly contribute to the operational readiness and effectiveness of the P-8A fleet.
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: N6833518R0056
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $30,880,590
Exercised Options: $30,880,590
Current Obligation: $30,880,590
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $8,163,368
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-09-18
Current End Date: 2024-09-19
Potential End Date: 2024-09-19 00:00:00
Last Modified: 2021-02-22
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