DoD awards $34M Boeing contract for on-site aircraft manufacturing support, lacking competition
Contract Overview
Contract Amount: $33,982,587 ($34.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-12-14
End Date: 2023-06-13
Contract Duration: 911 days
Daily Burn Rate: $37.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ON-SITE SUPPORT TASK ORDER
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $34.0 million to THE BOEING COMPANY for work described as: ON-SITE SUPPORT TASK ORDER Key points: 1. Significant award value of $33.98M for specialized on-site support. 2. Sole-source award to The Boeing Company raises questions about competition. 3. Contract duration of 911 days suggests a long-term need. 4. Focus on aircraft manufacturing indicates a critical defense sector.
Value Assessment
Rating: questionable
Pricing for this Cost Plus Fixed Fee contract is difficult to benchmark without detailed cost breakdowns. The lack of competition makes it harder to assess if the fixed fee is reasonable compared to market rates for similar specialized support services.
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 as there was no competitive pressure to drive down prices.
Taxpayer Impact: The absence of competition may result in the government paying a premium for these services, impacting taxpayer value.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. Reliance on a single contractor for critical support could pose supply chain risks. The long-term nature of the contract suggests ongoing needs within the Navy's aircraft manufacturing operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Cost-plus contract type
Positive Signals
- Supports critical defense manufacturing
- Long-term engagement
Sector Analysis
This contract falls within the Defense sector, specifically supporting aircraft manufacturing. Spending in this area is often characterized by high complexity, specialized labor, and significant R&D investment. Benchmarks are difficult without specific service details, but large sole-source awards in defense can be costly.
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, suggesting that opportunities for small businesses may have been missed.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective performance. Robust monitoring by the Department of the Navy is crucial to mitigate risks associated with non-competitive contracts.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Sole-source award
- Cost-plus contract type
- Potential for cost overruns
- Limited transparency
Tags
aircraft-manufacturing, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.0 million to THE BOEING COMPANY. ON-SITE SUPPORT TASK ORDER
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 $34.0 million.
What is the period of performance?
Start: 2020-12-14. End: 2023-06-13.
What specific on-site support services are being provided under this contract, and how do they uniquely benefit the Department of the Navy?
The contract specifies 'ON-SITE SUPPORT TASK ORDER' for aircraft manufacturing. While the exact nature of the support is not detailed, it likely involves specialized technical assistance, maintenance, or integration services directly at the Navy's facilities. This proximity and specialized expertise are intended to ensure seamless operations and rapid problem resolution for complex aircraft production lines, thereby enhancing operational readiness and program efficiency.
What justification was provided for awarding this contract on a sole-source basis instead of pursuing a competitive procurement?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. For this contract, it might be argued that Boeing possesses unique technical knowledge, proprietary data, or existing infrastructure essential for the specific aircraft manufacturing support needed by the Navy, making competition impractical or detrimental to program goals.
How will the Department of the Navy ensure cost-effectiveness and value for money given the Cost Plus Fixed Fee (CPFF) contract type and lack of competition?
The Navy must implement stringent oversight mechanisms, including detailed cost audits and performance monitoring, to ensure the fixed fee is reasonable and that costs incurred are allowable and allocable. Regular reviews of the contractor's performance against established metrics and comparison with industry standards, where possible, will be crucial to validate the value received for the taxpayer's investment.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6893615R0072
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: $36,983,559
Exercised Options: $36,983,559
Current Obligation: $33,982,587
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N6893618D0026
IDV Type: IDC
Timeline
Start Date: 2020-12-14
Current End Date: 2023-06-13
Potential End Date: 2023-06-13 00:00:00
Last Modified: 2025-12-03
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