DoD's $44.2M Boeing Contract for QEC Kits: Aircraft Manufacturing Spending Under Scrutiny
Contract Overview
Contract Amount: $44,214,572 ($44.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2012-08-06
End Date: 2015-03-13
Contract Duration: 949 days
Daily Burn Rate: $46.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CV0634- FY10 QEC KITS
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
Department of Defense obligated $44.2 million to THE BOEING COMPANY for work described as: CV0634- FY10 QEC KITS Key points: 1. High contract value ($44.2M) for aircraft manufacturing components. 2. Sole-source award to Boeing raises questions about competition. 3. Potential risk due to lack of competitive bidding and fixed-price structure. 4. Significant taxpayer investment in specialized aircraft parts.
Value Assessment
Rating: questionable
The contract value of $44.2M for QEC kits is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar aircraft manufacturing components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to The Boeing Company, indicating a lack of competition. This method may limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: The absence of competition in this sole-source award means taxpayers may not be receiving the best possible price for these critical aircraft components.
Public Impact
Taxpayers funded a significant sole-source contract for aircraft parts. The Department of the Air Force relied on a single vendor, Boeing. The contract duration of 949 days suggests a long-term need for these kits.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Fixed-price contract
Positive Signals
- Awarded to a major defense contractor
- Specific need for QEC kits
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a critical area for defense spending. Benchmarks for similar sole-source contracts in this sector are hard to establish without competitive data, but large values warrant scrutiny.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication that small businesses were involved as subcontractors or partners in this specific delivery order.
Oversight & Accountability
The sole-source nature of this award suggests limited oversight on price competitiveness. Further review would be needed to confirm if justification for sole-sourcing was adequately documented and approved.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for overpayment due to lack of competitive bidding.
- Fixed-price contract may not account for unforeseen cost efficiencies.
- Lack of transparency regarding the justification for sole-sourcing.
- Dependency on a single supplier for critical aircraft components.
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.2 million to THE BOEING COMPANY. CV0634- FY10 QEC 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 $44.2 million.
What is the period of performance?
Start: 2012-08-06. End: 2015-03-13.
What was the justification for awarding this contract on a sole-source basis to Boeing, and were alternative sources considered?
The provided data indicates a sole-source award, meaning alternatives were likely not pursued or deemed unsuitable. A thorough review would require access to the contract file to understand the specific justification, such as unique capabilities, urgent need, or lack of other qualified sources, and to verify if the government adequately explored competition.
How does the $44.2M contract value compare to industry benchmarks for similar QEC kits, especially considering the fixed-price nature?
Without competitive bids or access to detailed cost breakdowns, comparing this $44.2M fixed-price contract to industry benchmarks is challenging. The lack of competition inherently limits price discovery. A benchmark analysis would require data from similar sole-source or competitively awarded contracts for comparable QEC kits.
What is the long-term strategic value and potential obsolescence risk associated with these QEC kits purchased under this contract?
The long-term strategic value depends on the operational necessity and lifespan of the aircraft platforms these QEC kits support. Potential obsolescence risk is a concern for any specialized component, especially if technology evolves rapidly. Understanding the sustainment plan and upgrade path for the associated aircraft is crucial.
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: $44,214,572
Exercised Options: $44,214,572
Current Obligation: $44,214,572
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: 2012-08-06
Current End Date: 2015-03-13
Potential End Date: 2015-03-13 00:00:00
Last Modified: 2023-06-01
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)