DoD's $71.3M Engineering Services Contract with Boeing Faces Scrutiny for Lack of Competition
Contract Overview
Contract Amount: $71,280,067 ($71.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2010-09-24
End Date: 2016-01-06
Contract Duration: 1,930 days
Daily Burn Rate: $36.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: ENGINEERING SERVICES
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $71.3 million to THE BOEING COMPANY for work described as: ENGINEERING SERVICES Key points: 1. Significant contract value of $71.3 million awarded to a single, large corporation. 2. Sole-source award raises concerns about potential overpricing and limited innovation. 3. Lack of competition limits opportunities for small businesses and potentially increases taxpayer risk. 4. Engineering services sector often involves complex needs, but competition should still be explored.
Value Assessment
Rating: questionable
The contract's total value is substantial. Without competitive bidding, it's difficult to assess if the pricing reflects fair market value for engineering services. Benchmarking against similar sole-source contracts in the defense sector is challenging but necessary.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and may lead to higher costs for the government compared to a competitive process.
Taxpayer Impact: The absence of competition for a $71.3 million contract suggests taxpayers may not be receiving the best possible value, as alternative, potentially more cost-effective solutions were not explored.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. Limited opportunities for smaller, innovative engineering firms to secure government contracts. Potential for reduced quality or innovation when a single provider is guaranteed work.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of transparency in pricing
- No small business participation
Positive Signals
- Awarded to a major defense contractor
- Long contract duration
Sector Analysis
This contract falls under engineering services, a critical sector for government operations, particularly in defense. Spending in this area can be substantial, and competitive bidding is crucial to ensure efficiency and cost-effectiveness, especially for specialized technical services.
Small Business Impact
The sole-source nature of this award, coupled with the fact that the contractor is a large corporation, indicates no direct benefit or opportunity for small businesses. This contract does not appear to support small business goals.
Oversight & Accountability
The sole-source justification for this significant contract warrants close oversight to ensure the government received fair value and that the necessity for a non-competitive award was thoroughly documented and justified.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated costs
- Limited opportunity for small businesses
- Reduced incentive for innovation
- Questionable value for taxpayer money
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 $71.3 million to THE BOEING COMPANY. ENGINEERING SERVICES
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 $71.3 million.
What is the period of performance?
Start: 2010-09-24. End: 2016-01-06.
What was the specific justification for awarding this engineering services contract on a sole-source basis, and was a thorough market research conducted to confirm no other capable vendors existed?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available competition. Without detailed documentation, it's impossible to verify if extensive market research was performed to ensure no other vendors could meet the requirements. This lack of transparency raises concerns about potential missed opportunities for better pricing and innovation.
How can the Department of Defense ensure fair pricing and value for money when awarding large contracts without competition, especially for specialized engineering services?
Ensuring fair pricing without competition requires robust internal cost analysis, benchmarking against similar historical contracts (even sole-source ones), and potentially engaging independent cost estimators. The agency must meticulously document its price negotiation process and justify the final price based on available data, even if direct comparisons are limited.
What is the long-term impact on the defense industrial base and innovation when significant contracts are consistently awarded to large, established companies without competition?
Consistently awarding large contracts without competition can stifle innovation by reducing the incentive for incumbent contractors to improve efficiency and by preventing new, potentially disruptive technologies from emerging. It can also lead to market concentration, making the defense industrial base less resilient and potentially more expensive in the long run.
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: COST NO FEE (S)
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: $71,280,067
Exercised Options: $71,280,067
Current Obligation: $71,280,067
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: 2010-09-24
Current End Date: 2016-01-06
Potential End Date: 2016-01-06 00:00:00
Last Modified: 2019-11-14
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