Boeing Awarded $106M for Aircraft Hydraulic Systems, Competition Limited
Contract Overview
Contract Amount: $10,612,792 ($10.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2003-08-15
End Date: 2010-02-23
Contract Duration: 2,384 days
Daily Burn Rate: $4.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200311!000411!5700!GE40 !OO-ALC/PKI/LIK !F3460101G0011 !A!N! !N!QP11 !20030815!20050131!039267141!039267141!009256819!N!THE BOEING COMPANY !7755 E MARGINAL WAY !SEATTLE !WA!98124!63000!033!53!SEATTLE !KING !WASHINGTON!+000006000000!N!N!000000000000!1650!ACFT HYDRAULIC, VACUUM & DE-ICING SYS COMP !A1A!AIRFRAMES AND SPARES !3ABK!B-2 STEALTH !336413!E! !4! ! ! ! ! !99990909!B! ! !N!B!D!U!J!1!001!N!1D!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: CLEVELAND, CUYAHOGA County, OHIO, 44105
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $10.6 million to THE BOEING COMPANY for work described as: 200311!000411!5700!GE40 !OO-ALC/PKI/LIK !F3460101G0011 !A!N! !N!QP11 !20030815!20050131!039267141!039267141!009256819!N!THE BOEING COMPANY !7755 E MARGINAL WAY !SEATTLE !WA!98124!63000!033!53!SEATTLE !KING … Key points: 1. Contract awarded to The Boeing Company for aircraft hydraulic, vacuum, and de-icing systems. 2. The contract was not competed, raising questions about price discovery and potential value. 3. Significant taxpayer impact due to the lack of competitive bidding. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', with a specific focus on B-2 Stealth components.
Value Assessment
Rating: questionable
The contract value is $106,127,920. Without competitive bids, it's difficult to assess if this price is optimal or reflects market value for these specialized aircraft systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited competition approach. This likely resulted in less aggressive pricing than a full and open competition would have achieved.
Taxpayer Impact: The lack of competition means taxpayers may have paid a premium for these critical aircraft components, as there was no market pressure to drive down costs.
Public Impact
Essential components for military aircraft, particularly the B-2 Stealth bomber, ensuring operational readiness. Potential for higher costs to taxpayers due to the sole-source nature of the award. Supports a major defense contractor, impacting the aerospace and defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency in pricing
Positive Signals
- Ensures supply of critical aircraft systems
- Supports established defense industrial base
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, specifically for components related to airframes and spares. Defense spending in this area is crucial for maintaining fleet readiness, but often involves specialized, high-cost items.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this contract award. The focus appears to be on a large, established prime contractor.
Oversight & Accountability
The limited competition raises concerns about the effectiveness of oversight in ensuring the best value for taxpayer dollars. Further review of the justification for limited competition is warranted.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency
- Sole-source dependency risk
- No small business participation evident
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.6 million to THE BOEING COMPANY. 200311!000411!5700!GE40 !OO-ALC/PKI/LIK !F3460101G0011 !A!N! !N!QP11 !20030815!20050131!039267141!039267141!009256819!N!THE BOEING COMPANY !7755 E MARGINAL WAY !SEATTLE !WA!98124!63000!033!53!SEATTLE !KING !WASHINGTON!+000006000000!N!N!000000000000!1650!ACFT HYDRAULIC, VACUUM & DE-ICING SYS COMP !A1A!AIRFRAMES AND SPARES !3ABK!B-2 STEALTH !336413!E! !4! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $10.6 million.
What is the period of performance?
Start: 2003-08-15. End: 2010-02-23.
What was the justification for limiting competition on this contract, and was it adequately documented?
The provided data states the contract was 'NOT COMPETED'. A thorough review would be needed to determine the specific justification (e.g., sole-source necessity, urgent need) and verify if it met regulatory requirements for limiting competition. Without this information, it's impossible to assess if the government received fair value or if alternative sources were overlooked.
How does the per-unit cost of these hydraulic, vacuum, and de-icing systems compare to similar systems procured through competitive means?
Benchmarking the per-unit cost is challenging without access to detailed cost breakdowns and comparable contract data. Given the limited competition, it is plausible that the per-unit cost is higher than if the contract had been awarded through a full and open process. Further analysis would require access to specific product details and market pricing.
What is the long-term strategic impact of relying on a single source for these critical B-2 stealth components?
Sole-sourcing critical components like these for the B-2 stealth bomber can create long-term strategic risks, including potential supply chain vulnerabilities and price escalation over time. It also limits opportunities for innovation and competition that could lead to cost savings or improved technology. Maintaining a robust industrial base often requires fostering competition where feasible.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 7755 E MARGINAL WAY, SEATTLE, WA, 07
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F3460101G0011
IDV Type: IDC
Timeline
Start Date: 2003-08-15
Current End Date: 2010-02-23
Potential End Date: 2010-02-23 00:00:00
Last Modified: 2010-06-06
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