DoD awards Boeing $30M for Aircraft Manufacturing, raising concerns over competition and value
Contract Overview
Contract Amount: $30,091,422 ($30.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2013-09-18
End Date: 2017-03-27
Contract Duration: 1,286 days
Daily Burn Rate: $23.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: IGF::OT::IGF 1760 EMD
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $30.1 million to THE BOEING COMPANY for work described as: IGF::OT::IGF 1760 EMD Key points: 1. Significant contract awarded to a single, large vendor. 2. Limited transparency on pricing due to 'Cost Plus Incentive Fee' structure. 3. Long duration and high value warrant close scrutiny. 4. Potential for cost overruns exists with incentive fee contracts.
Value Assessment
Rating: questionable
The 'Cost Plus Incentive Fee' contract type makes direct value assessment difficult without detailed cost breakdowns. The benchmark for similar aircraft manufacturing contracts is not readily available, but the lack of competition suggests potential for inflated pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and negotiation leverage for the government, potentially leading to higher costs than if multiple vendors had bid.
Taxpayer Impact: The lack of competition and potentially less efficient pricing mechanisms could result in higher taxpayer expenditure than necessary for these aircraft manufacturing services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration could tie up significant defense resources. Reliance on a single large contractor raises concerns about supply chain resilience.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
- High contract value
Positive Signals
- Awarded to established vendor
- Contract completed
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a critical area for defense spending. Benchmarks for similar sole-source, cost-plus contracts in this sector often show higher costs compared to competed ones.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The 'Cost Plus Incentive Fee' structure requires robust oversight to ensure contractor performance and cost control. The lack of competition necessitates increased vigilance from the Department of Defense to prevent potential waste.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
- Limited transparency on pricing
- High contract value
Tags
aircraft-manufacturing, department-of-defense, ok, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.1 million to THE BOEING COMPANY. IGF::OT::IGF 1760 EMD
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 $30.1 million.
What is the period of performance?
Start: 2013-09-18. End: 2017-03-27.
What specific performance metrics were used to justify the incentive fee structure, and how were they monitored?
The provided data does not detail the specific performance metrics tied to the incentive fee. Effective oversight would require the agency to have clearly defined, measurable objectives for Boeing, along with a rigorous system for tracking progress against these goals to ensure fair incentive payouts and taxpayer value.
What was the rationale for not competing this significant contract, and were alternatives explored?
The data indicates the contract was 'NOT COMPETED,' suggesting a sole-source justification. Without further information, it's unclear if this was due to unique capabilities, urgent need, or other factors. A thorough review would be needed to confirm if competitive alternatives were genuinely unavailable or if the sole-source path was chosen for expediency.
How does the final cost compare to initial estimates, considering the incentive fee structure?
The data does not provide initial estimates or final cost comparisons. A 'Cost Plus Incentive Fee' contract aims to align contractor and government interests, but without post-award financial reporting, it's impossible to assess if the incentives effectively controlled costs or if the final price was reasonable relative to performance achieved.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 6001 S AIR DEPOT BLVD, OKLAHOMA CITY, OK, 73135
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,004,218
Exercised Options: $37,144,234
Current Obligation: $30,091,422
Subaward Activity
Number of Subawards: 17
Total Subaward Amount: $1,641,669
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862810D1000
IDV Type: IDC
Timeline
Start Date: 2013-09-18
Current End Date: 2017-03-27
Potential End Date: 2017-03-27 00:00:00
Last Modified: 2021-07-22
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