DoD awards $27M for F-15S Engine Kits to Boeing, raising concerns about competition and value
Contract Overview
Contract Amount: $26,952,136 ($27.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2008-03-07
End Date: 2011-02-28
Contract Duration: 1,088 days
Daily Burn Rate: $24.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F-15S ENGINE KITS
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $27.0 million to THE BOEING COMPANY for work described as: F-15S ENGINE KITS Key points: 1. Significant contract value for specialized aircraft components. 2. Sole-source award to a single, established prime contractor. 3. Potential for inflated costs due to lack of competitive bidding. 4. Long-term sustainment of critical military assets.
Value Assessment
Rating: questionable
The $26.95 million award for F-15S engine kits lacks a clear benchmark for comparison. Without competitive pricing, it's difficult to assess if the price paid represents fair market value for these specialized components.
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 opportunity for other vendors to bid.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may have paid a premium for these engine kits, as there was no market pressure to drive down costs.
Public Impact
Ensures continued operational readiness of the F-15S fleet. Supports critical maintenance and repair capabilities for advanced aircraft. Impacts the long-term sustainment strategy for a key defense asset.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Supports critical defense capability
- Awarded to established prime contractor
Sector Analysis
This contract falls under Engineering Services, specifically related to aerospace and defense manufacturing. Spending in this sector is often characterized by high technical complexity and significant R&D investment, with a tendency towards sole-source or limited competition for specialized components.
Small Business Impact
The data indicates this contract was awarded directly to The Boeing Company, a large prime contractor. There is no indication of small business participation in this specific award, suggesting potential missed opportunities for SMBs in the supply chain.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value. Future contract actions should explore competitive strategies to enhance accountability and cost-effectiveness.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for inflated pricing due to no competition.
- Limited visibility into cost drivers.
- Long contract duration without competitive review.
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 $27.0 million to THE BOEING COMPANY. F-15S ENGINE KITS
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 Air Force).
What is the total obligated amount?
The obligated amount is $27.0 million.
What is the period of performance?
Start: 2008-03-07. End: 2011-02-28.
What was the justification for awarding this contract on a sole-source basis, and were alternative sourcing strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For this F-15S engine kit contract, the specific rationale needs to be documented by the Department of the Air Force. It's crucial to understand if market research was conducted to identify potential competitors or if the nature of the engine kits inherently limited the supplier pool.
How does the pricing of these F-15S engine kits compare to similar components or previous procurements, considering the lack of competition?
Without competitive bids, direct price comparison is challenging. However, an analysis could involve benchmarking against historical pricing for the same or similar engine kits, factoring in inflation and any technical modifications. Additionally, comparing the unit cost to industry averages for comparable aerospace components, adjusted for complexity and scale, could provide insights into potential cost deviations.
What is the long-term strategy for procuring F-15S engine kits, and will future procurements involve competitive bidding to ensure cost efficiency?
The long-term strategy for procuring these critical engine kits is essential for maintaining the F-15S fleet's operational readiness. Future procurements should prioritize competitive bidding processes whenever feasible. This not only drives down costs but also fosters innovation and ensures a more resilient supply chain, ultimately benefiting taxpayer investment in defense capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT 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
Financial Breakdown
Contract Ceiling: $27,400,053
Exercised Options: $27,400,053
Current Obligation: $26,952,136
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: 2008-03-07
Current End Date: 2011-02-28
Potential End Date: 2011-02-28 00:00:00
Last Modified: 2019-11-14
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