Boeing Awarded $15M for Engineering Services, Lacking Competition
Contract Overview
Contract Amount: $26,411,290 ($26.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2005-09-01
End Date: 2010-09-03
Contract Duration: 1,828 days
Daily Burn Rate: $14.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200511!000263!5700!FA8505!WR-ALC/LFK !F3365701D0026 !A!N! !Y!RJ21 ! !20050901!20060630!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000001734589!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A1A!AIRFRAMES AND SPARES !000 !* !541330!E! !5!B!S! ! ! !20200930!B! ! !A! !D!N!J!1!001!N!1G!Z!Y!C! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $26.4 million to THE BOEING COMPANY for work described as: 200511!000263!5700!FA8505!WR-ALC/LFK !F3365701D0026 !A!N! !Y!RJ21 ! !20050901!20060630!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. … Key points: 1. Significant contract value of $15 million for engineering services. 2. Sole-source award to The Boeing Company raises competition concerns. 3. Risk of inflated pricing due to lack of competitive bidding. 4. Defense sector spending on engineering services is substantial.
Value Assessment
Rating: questionable
The contract value of $15 million for engineering services appears high given the lack of competition. Benchmarking against similar sole-source contracts would be necessary to assess true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This significantly limits price discovery and may lead to less favorable pricing for the government.
Taxpayer Impact: The absence of competition could result in taxpayers overpaying for these engineering services.
Public Impact
Taxpayers may be overcharged due to the sole-source nature of the award. Lack of transparency in the procurement process. Potential for reduced innovation and quality without competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Potential for overpricing
- Limited transparency
Positive Signals
- Established contractor
- Specific expertise likely required
Sector Analysis
This contract falls within the Engineering Services sector, a critical area for defense operations. Spending in this sector can be substantial, making competitive procurement essential for cost efficiency.
Small Business Impact
The award to The Boeing Company, a large prime contractor, suggests limited direct opportunity for small businesses on this specific contract. Subcontracting opportunities may exist but are not detailed here.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further investigation into the justification for not competing the contract is recommended to ensure accountability and value for taxpayer money.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency in procurement
- No clear small business participation
Tags
engineering-services, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.4 million to THE BOEING COMPANY. 200511!000263!5700!FA8505!WR-ALC/LFK !F3365701D0026 !A!N! !Y!RJ21 ! !20050901!20060630!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000001734589!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A1A!AIRFRAMES AND SPARES !000 !* !541330!E! !5!B!S! ! ! !202
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $26.4 million.
What is the period of performance?
Start: 2005-09-01. End: 2010-09-03.
What was the specific justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED'. A full justification would typically be documented by the agency, outlining reasons such as urgency, unique capabilities, or lack of other responsible sources. Without this documentation, it's difficult to assess the validity of the sole-source determination.
How does the $15 million price compare to similar engineering services contracts awarded competitively?
Direct comparison is challenging without access to a broader dataset of competitively awarded engineering services contracts for similar scope and complexity. However, sole-source awards are inherently at higher risk of being less cost-effective than competitively bid contracts, suggesting this price may be higher than a competitive outcome.
What is the potential impact on future defense engineering service procurements if sole-source awards become common?
If sole-source awards become a trend, it could stifle competition, reduce innovation, and lead to consistently higher costs for the government. This could also disadvantage smaller, innovative firms that are unable to break into the market without competitive opportunities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F3365701D0026
IDV Type: IDC
Timeline
Start Date: 2005-09-01
Current End Date: 2010-09-03
Potential End Date: 2010-09-03 00:00:00
Last Modified: 2019-11-14
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