Boeing Awarded $106.4M for CY12 MIP Labor by DoD, Sole-Sourced
Contract Overview
Contract Amount: $106,418,434 ($106.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2012-03-12
End Date: 2019-09-30
Contract Duration: 2,758 days
Daily Burn Rate: $38.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CY12 MIP LABOR
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
Department of Defense obligated $106.4 million to THE BOEING COMPANY for work described as: CY12 MIP LABOR Key points: 1. Significant contract value of over $106 million awarded to a single large business. 2. Sole-source award to Boeing raises questions about competition and potential price inflation. 3. Long contract duration of 2758 days suggests a substantial, ongoing need. 4. The contract falls under the Aircraft Manufacturing sector, indicating specialized defense needs.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Without competitive bidding, it's difficult to assess if the pricing is reasonable compared to market rates for similar labor.
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 a contract of this magnitude could lead to taxpayers paying a premium for the required labor.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The long duration of the contract means sustained financial commitment. Reliance on a single contractor for critical aircraft manufacturing labor could pose a risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration
- No small business participation indicated
Positive Signals
- Awarded to a major defense contractor with established capabilities
Sector Analysis
This contract is within the Aircraft Manufacturing sector, a critical area for the Department of Defense. Spending benchmarks in this sector are highly specialized and depend on the specific nature of the labor provided.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (sb: false). This suggests that the scope of work or the contractor selection process did not prioritize small business participation.
Oversight & Accountability
The 'st' field indicates 'CA' (Contract Action), suggesting this is a specific action within a larger contract or program. Further oversight would be needed to understand the full context and ensure accountability for this sole-source award.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns with CPFF
- Long contract duration may indicate inflexibility
- No small business participation
- Limited transparency on specific labor provided
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 $106.4 million to THE BOEING COMPANY. CY12 MIP LABOR
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 $106.4 million.
What is the period of performance?
Start: 2012-03-12. End: 2019-09-30.
What specific labor services were procured under this contract, and why was a sole-source award deemed necessary?
The contract is for 'CY12 MIP LABOR' within Aircraft Manufacturing. A sole-source award is typically justified when only one responsible source can provide the required supplies or services. This could be due to proprietary technology, unique capabilities, or urgent needs. Without further details on 'MIP LABOR', it's difficult to ascertain the precise justification, but it likely relates to specialized skills or systems exclusive to Boeing.
What measures were in place to control costs and ensure value for money given the Cost Plus Fixed Fee structure and sole-source nature?
For Cost Plus Fixed Fee contracts, especially sole-source ones, robust government oversight is crucial. This includes detailed cost monitoring, audits, and performance evaluations to ensure the contractor is operating efficiently and that the fixed fee remains appropriate. The effectiveness of these measures would depend on the diligence of the Defense Contract Management Agency (DCMA) in scrutinizing Boeing's costs and performance throughout the contract's duration.
How does this contract's pricing compare to similar sole-source aircraft manufacturing labor contracts awarded by the DoD?
Benchmarking this specific contract's pricing is challenging without access to detailed cost breakdowns and comparable sole-source awards. However, the absence of competition inherently limits the ability to ensure best value. The 'br' field shows 38585, which might represent a baseline or target, but its relation to the final cost and its reasonableness in a sole-source context requires deeper analysis of the contract's financial history and the specific labor provided.
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: COST PLUS FIXED FEE (U)
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: $106,611,387
Exercised Options: $106,611,387
Current Obligation: $106,418,434
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: 2012-03-12
Current End Date: 2019-09-30
Potential End Date: 2019-09-30 00:00:00
Last Modified: 2023-06-01
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