DoD Awards $110M for C-17 LAIRCM Kits to Boeing, Lacking Competition
Contract Overview
Contract Amount: $109,843,294 ($109.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2012-02-07
End Date: 2017-12-31
Contract Duration: 2,154 days
Daily Burn Rate: $51.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ACAT II C-17 LAIRCM KITS
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
Department of Defense obligated $109.8 million to THE BOEING COMPANY for work described as: ACAT II C-17 LAIRCM KITS Key points: 1. Significant spending on critical aircraft defense systems. 2. Sole-source award to Boeing raises competition concerns. 3. High value contract with potential for price escalation. 4. Focus on aircraft manufacturing sector, specifically defense. 5. Long contract duration of over 2000 days.
Value Assessment
Rating: questionable
The contract value of $109.8 million for C-17 LAIRCM kits is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems or potential alternatives.
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 lack of competition limits price discovery and may result in higher costs for the government.
Taxpayer Impact: The absence of competition for this significant defense contract means taxpayers may be paying a premium for the LAIRCM kits, as there was no market pressure to drive down prices.
Public Impact
Enhances survivability of C-17 aircraft against missile threats. Supports ongoing military operations and readiness. Potential impact on future defense procurement strategies. Long-term sustainment and upgrade implications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
- Long duration
Positive Signals
- Critical defense system
- Supports military readiness
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending benchmarks for similar advanced defense systems can vary widely, but sole-source awards often exceed competitive pricing.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of small business participation in this specific award, suggesting limited opportunities for small businesses.
Oversight & Accountability
The award was managed by the Defense Contract Management Agency (DCMA). Oversight effectiveness is difficult to gauge without further information on the justification for the sole-source award and price negotiation.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in award justification
- Risk of contractor dependency
- Long-term contract duration may not reflect evolving needs
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $109.8 million to THE BOEING COMPANY. ACAT II C-17 LAIRCM 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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $109.8 million.
What is the period of performance?
Start: 2012-02-07. End: 2017-12-31.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award is crucial for understanding the necessity of bypassing competition. Without this information, it's impossible to determine if the government adequately explored options that could have fostered competition or secured better pricing. This lack of transparency raises concerns about potential inefficiencies and the optimal use of taxpayer funds.
How does the per-unit cost of these LAIRCM kits compare to industry benchmarks or previous procurements, especially given the sole-source nature?
Assessing the per-unit cost against benchmarks is challenging without competitive data. Sole-source contracts often lack the downward price pressure inherent in competitive bidding. If this contract's unit cost is significantly higher than comparable systems or historical data, it could indicate a lack of cost-effectiveness and potential overspending by the government.
What measures are in place to ensure the effectiveness and timely delivery of these critical defense systems under a sole-source arrangement?
Ensuring effectiveness and timely delivery under a sole-source contract relies heavily on robust government oversight and contract management. Clear performance metrics, regular progress reviews, and strong communication channels with the sole contractor are essential. Without these, there's an increased risk of delays, quality issues, or cost overruns that could impact military readiness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
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: 5301 BOLSA AVE, HUNTINGTON BEACH, CA, 92647
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $109,843,294
Exercised Options: $109,843,294
Current Obligation: $109,843,294
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA852612D0001
IDV Type: IDC
Timeline
Start Date: 2012-02-07
Current End Date: 2017-12-31
Potential End Date: 2017-12-31 00:00:00
Last Modified: 2023-06-01
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