DoD Awards $12.6M for Aircraft Repair Tooling to Boeing, Lacking Competition
Contract Overview
Contract Amount: $12,571,163 ($12.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-09-25
End Date: 2027-02-18
Contract Duration: 1,242 days
Daily Burn Rate: $10.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS EFFORT IS FOR THE PROCUREMENT OF STRUCTURAL REPAIR MANUAL (SRM) TOOLING, WHICH CONSISTS OF PECULIAR SUPPORT EQUIPMENT (PSE) AND NONDESTRUCTIVE INSPECTION (NDI) KITS.
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $12.6 million to THE BOEING COMPANY for work described as: THIS EFFORT IS FOR THE PROCUREMENT OF STRUCTURAL REPAIR MANUAL (SRM) TOOLING, WHICH CONSISTS OF PECULIAR SUPPORT EQUIPMENT (PSE) AND NONDESTRUCTIVE INSPECTION (NDI) KITS. Key points: 1. Significant contract awarded to a single large business, raising questions about competition. 2. Focus on specialized tooling for structural repair highlights critical defense maintenance needs. 3. Long-term contract duration (2027) suggests ongoing reliance on this specific equipment. 4. The absence of competition for this substantial award warrants further scrutiny.
Value Assessment
Rating: questionable
The $12.6 million award for specialized tooling appears substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar specialized equipment procurements.
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 lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a $12.6 million contract means taxpayers may not be receiving the best possible price for this essential defense equipment.
Public Impact
Ensures continued readiness of naval aircraft through specialized repair capabilities. Supports critical maintenance operations within the Department of the Navy. Potential for increased costs due to lack of competitive bidding. Reliance on a single vendor for essential tooling.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Supports critical defense maintenance
- Long-term contract ensures availability
Sector Analysis
This procurement falls within the aerospace and defense manufacturing sector, specifically focusing on specialized tooling for aircraft maintenance. Spending in this area is crucial for maintaining military readiness, but often involves high-value, specialized components that can limit competition.
Small Business Impact
The contract was awarded to The Boeing Company, a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award suggests a potential gap in competitive sourcing strategies. Further oversight is needed to ensure justification for non-competitive awards and explore opportunities for future competition.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Long-term commitment to a single vendor
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.6 million to THE BOEING COMPANY. THIS EFFORT IS FOR THE PROCUREMENT OF STRUCTURAL REPAIR MANUAL (SRM) TOOLING, WHICH CONSISTS OF PECULIAR SUPPORT EQUIPMENT (PSE) AND NONDESTRUCTIVE INSPECTION (NDI) KITS.
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 $12.6 million.
What is the period of performance?
Start: 2023-09-25. End: 2027-02-18.
What is the justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED'. A full justification for this sole-source award, detailing why competitive procedures were not feasible or appropriate, would be necessary to fully assess the procurement's rationale and potential impact on value for money.
What is the risk associated with relying on a single vendor for critical repair tooling?
The primary risk is a lack of price competition, potentially leading to inflated costs. Additionally, reliance on a single vendor can create supply chain vulnerabilities and limit flexibility if the vendor faces production issues or changes its business strategy.
How does this procurement contribute to overall defense readiness and effectiveness?
This contract provides essential Structural Repair Manual (SRM) tooling, including Peculiar Support Equipment (PSE) and Non-Destructive Inspection (NDI) kits. These are critical for maintaining the airworthiness and operational readiness of naval aircraft, directly supporting the effectiveness of defense missions.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: MAINT/REPAIR SHOP EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6833522R0128
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JAMES S 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: $13,110,619
Exercised Options: $12,571,163
Current Obligation: $12,571,163
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $2,863,764
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001921G0006
IDV Type: BOA
Timeline
Start Date: 2023-09-25
Current End Date: 2027-02-18
Potential End Date: 2027-02-18 00:00:00
Last Modified: 2025-11-04
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