Navy Awards Boeing $39M for P-8A Aircraft Maintenance Capabilities
Contract Overview
Contract Amount: $38,960,406 ($39.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2017-09-29
End Date: 2022-02-28
Contract Duration: 1,613 days
Daily Burn Rate: $24.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: P-8A SMS FTE DEPOT AND INTERMEDIATE LEVEL MAINTENANCE CAPABILITIES
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $39.0 million to THE BOEING COMPANY for work described as: P-8A SMS FTE DEPOT AND INTERMEDIATE LEVEL MAINTENANCE CAPABILITIES Key points: 1. Contract awarded to The Boeing Company for P-8A Poseidon aircraft maintenance. 2. Sole-source award indicates limited competition for these specialized services. 3. Firm-fixed-price contract type aims to control costs for depot and intermediate maintenance. 4. Spending on this contract falls within the broader aerospace and defense sector.
Value Assessment
Rating: fair
The contract value of $39 million for a duration of over 4 years appears reasonable for specialized aircraft maintenance. Benchmarking against similar depot-level maintenance contracts for complex military aircraft would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source award to Boeing, likely due to proprietary knowledge or unique capabilities related to the P-8A platform. This limits price discovery and potentially increases costs for the government.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a fully competed contract. Effective negotiation and oversight are crucial to mitigate this impact.
Public Impact
Ensures continued operational readiness of the P-8A Poseidon maritime patrol aircraft. Supports critical defense capabilities for the U.S. Navy. Maintains specialized maintenance expertise for a key military asset.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Long contract duration could lead to cost overruns if not managed closely.
- Lack of small business participation noted.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Supports a critical national defense asset.
- Awarded to the original equipment manufacturer, ensuring specialized knowledge.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance. Spending benchmarks for similar specialized maintenance services are difficult to ascertain without more detailed contract data, but this represents a significant investment in a key platform.
Small Business Impact
The data indicates no specific set-aside for small businesses on this contract. Given the specialized nature of depot-level maintenance for advanced aircraft, it is common for prime contractors to perform the work directly or through their own facilities.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. Robust performance monitoring and financial controls are essential to ensure the contractor meets all requirements and that taxpayer funds are used efficiently.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of small business participation
- Potential for cost creep over contract duration
- Dependency on a single contractor for critical maintenance
Tags
search-detection-navigation-guidance-aer, department-of-defense, mo, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.0 million to THE BOEING COMPANY. P-8A SMS FTE DEPOT AND INTERMEDIATE LEVEL MAINTENANCE CAPABILITIES
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 $39.0 million.
What is the period of performance?
Start: 2017-09-29. End: 2022-02-28.
What is the justification for the sole-source award, and what steps are taken to ensure fair pricing without competition?
The justification for a sole-source award typically stems from the unique capabilities, proprietary data, or specialized knowledge held by the incumbent contractor, in this case, Boeing, for the P-8A aircraft. To ensure fair pricing, the Navy likely relies on mechanisms such as cost analysis, historical pricing data, and potentially independent government cost estimates. Regular audits and performance reviews are also critical to verify the necessity and reasonableness of costs incurred.
What are the potential risks associated with a long-term, sole-source maintenance contract for critical military assets?
Long-term, sole-source contracts for critical assets like the P-8A pose risks of escalating costs due to a lack of competitive pressure, potential for contractor complacency, and vendor lock-in. There's also a risk that technological advancements or alternative solutions might be overlooked. Furthermore, if the contractor faces financial instability or operational issues, it could directly impact the availability and readiness of the military asset.
How does this contract contribute to the overall effectiveness and readiness of the P-8A fleet?
This contract is crucial for maintaining the operational effectiveness and readiness of the P-8A fleet by ensuring that depot and intermediate-level maintenance capabilities are consistently available. These services are essential for complex repairs, overhauls, and upgrades that keep the aircraft mission-capable. Without this dedicated support, the Navy's ability to conduct maritime patrol, anti-submarine warfare, and intelligence, surveillance, and reconnaissance missions would be significantly hampered.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6883615R0004
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: $38,960,406
Exercised Options: $38,960,406
Current Obligation: $38,960,406
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $18,807,439
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-09-29
Current End Date: 2022-02-28
Potential End Date: 2022-02-28 00:00:00
Last Modified: 2022-01-18
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