DoD Awards Boeing $31.8M RADAR II Task Order for Aircraft Manufacturing, Not Competed

Contract Overview

Contract Amount: $31,852,035 ($31.9M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2021-08-16

End Date: 2023-06-13

Contract Duration: 666 days

Daily Burn Rate: $47.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: RADAR II TASK ORDER

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $31.9 million to THE BOEING COMPANY for work described as: RADAR II TASK ORDER Key points: 1. Significant award to a major defense contractor, Boeing. 2. Lack of competition raises questions about price discovery. 3. Focus on aircraft manufacturing within the defense sector. 4. Potential for cost overruns given the Cost Plus Fixed Fee contract type.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed closely. Benchmarking against similar aircraft manufacturing contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher price than if multiple vendors had competed.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense continues to rely on a single large contractor for critical aircraft manufacturing needs. The long duration of the contract (666 days) suggests a substantial project with ongoing resource allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Cost Plus Fixed Fee contract
  • Lack of transparency in pricing

Positive Signals

  • Award to established contractor
  • Supports critical defense manufacturing

Sector Analysis

This award falls within the Aircraft Manufacturing sector, a critical component of the defense industrial base. Spending in this area is often substantial and driven by national security requirements.

Small Business Impact

There is no indication that small businesses were involved in this specific task order, which is common for large, sole-source awards to major prime contractors.

Oversight & Accountability

The lack of competition warrants increased oversight to ensure costs are reasonable and performance meets expectations. Accountability for the fixed fee and cost reimbursement needs to be stringent.

Related Government Programs

  • Aircraft Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Potential for cost overruns due to contract type.
  • Lack of competitive bidding may lead to inflated prices.
  • Limited transparency on specific deliverables and capabilities.
  • No indication of small business participation.

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 $31.9 million to THE BOEING COMPANY. RADAR II 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 $31.9 million.

What is the period of performance?

Start: 2021-08-16. End: 2023-06-13.

What specific RADAR II capabilities are being developed or manufactured under this task order, and how do they align with current defense priorities?

The data does not specify the exact RADAR II capabilities. However, given the context of aircraft manufacturing and the Department of Defense, it likely pertains to advanced radar systems integrated into military aircraft for surveillance, targeting, or electronic warfare. This aligns with ongoing defense modernization efforts to maintain technological superiority.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award is not provided in the data. Typically, such awards occur when only one source can meet the requirement due to unique capabilities, urgency, or specific program needs. Without further information, it's difficult to assess the fairness and reasonableness of the pricing, though the 'not competed' status raises concerns.

How will the performance and cost-effectiveness of this Cost Plus Fixed Fee contract be monitored to mitigate potential overruns and ensure value for taxpayer money?

Effective monitoring of a Cost Plus Fixed Fee contract requires rigorous oversight of incurred costs, regular performance reviews, and clear communication channels. The Department of Defense should implement stringent auditing procedures and performance metrics to ensure Boeing operates efficiently, stays within projected costs, and delivers the contracted capabilities as specified.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingAircraft Manufacturing

Product/Service Code: MODIFICATION OF EQUIPMENTMODIFICATION 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: $56,753,046

Exercised Options: $56,753,046

Current Obligation: $31,852,035

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $17,355,093

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: 2021-08-16

Current End Date: 2023-06-13

Potential End Date: 2023-06-13 00:00:00

Last Modified: 2025-12-02

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