Navy awards $27.7M for F/A-18 E/F support equipment to Boeing, raising concerns about competition
Contract Overview
Contract Amount: $27,673,215 ($27.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-04-04
End Date: 2022-03-30
Contract Duration: 1,091 days
Daily Burn Rate: $25.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F/A-18 E/F PECULIAR SUPPORT EQUIPMENT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $27.7 million to THE BOEING COMPANY for work described as: F/A-18 E/F PECULIAR SUPPORT EQUIPMENT Key points: 1. Significant contract value for specialized aircraft support equipment. 2. Sole-source award to a single, large defense contractor. 3. Potential for inflated costs due to lack of competitive bidding. 4. Focus on sustainment for a key naval aviation platform.
Value Assessment
Rating: questionable
The contract value of $27.7 million for peculiar support equipment is substantial. Without competitive benchmarking, it's difficult to assess if this price is reasonable compared to similar specialized equipment contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, The Boeing Company, was solicited. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for this specialized support equipment.
Public Impact
Ensures continued operational readiness of the F/A-18 E/F Super Hornet fleet. Supports critical maintenance and repair functions for naval aviation. Potential for limited availability of parts if sole-source issues arise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Potential for cost overruns
- Reliance on a single supplier
Positive Signals
- Supports critical defense platform
- Ensures operational readiness
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on specialized support equipment for military aircraft. Spending in this area is often characterized by high technical requirements and limited competition due to proprietary designs.
Small Business Impact
The award went to The Boeing Company, a large prime contractor, with no indication of small business subcontracting. This suggests limited direct benefit to small businesses in this specific procurement.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. Accountability rests with the Department of the Navy to justify the lack of competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for cost overruns
- Dependency on a single supplier
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.7 million to THE BOEING COMPANY. F/A-18 E/F PECULIAR SUPPORT EQUIPMENT
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 $27.7 million.
What is the period of performance?
Start: 2019-04-04. End: 2022-03-30.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. The Department of the Navy would need to provide documentation demonstrating that competitive sources were thoroughly investigated and found unsuitable, or that the cost savings from competition were not significant enough to outweigh the benefits of a sole-source award.
How does the unit cost of this support equipment compare to industry benchmarks for similar items?
Without specific unit cost data and access to industry benchmarks for highly specialized, peculiar support equipment, a direct comparison is challenging. However, given the sole-source nature, there's a heightened risk that the pricing may exceed competitive market rates. Further analysis would require detailed cost breakdowns and access to proprietary data.
What are the long-term implications for F/A-18 E/F sustainment if Boeing faces production or supply chain issues?
A sole-source award creates a significant dependency on the incumbent contractor. If Boeing encounters production delays, supply chain disruptions, or financial difficulties, the sustainment of the F/A-18 E/F fleet could be severely impacted, potentially leading to reduced operational readiness and increased costs to mitigate these issues.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT/REPAIR SHOP EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6833519R0124
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: $27,673,215
Exercised Options: $27,673,215
Current Obligation: $27,673,215
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6833515G0022
IDV Type: BOA
Timeline
Start Date: 2019-04-04
Current End Date: 2022-03-30
Potential End Date: 2022-03-30 00:00:00
Last Modified: 2023-12-14
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