Boeing Awarded $24.6M for Aircraft Manufacturing, Undisclosed Scope
Contract Overview
Contract Amount: $20,802,254 ($20.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2006-03-08
End Date: 2008-06-30
Contract Duration: 845 days
Daily Burn Rate: $24.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE
Sector: Defense
Official Description: 200606!000108!5700!FA8102!OC-ALC/LAD !F3365701D2050 !A!N! !N!SD18 ! !20060308!20071231!076200344!076200344!009256819!N!MCDONNELL DOUGLAS CORPORATION !2401 E WARDLOW ROAD !LONG BEACH !CA!90807!43000!037!06!LONG BEACH !LOS ANGELES !CALIFORNIA!+000004171722!N!N!000000000000!AJ43!RDTE/ENGINEERING SCIENCES - ADV TECH DEV !A1A!AIRFRAMES AND SPARES !288 !B1-B CMUP !336413!E! !5!B!S! ! ! !99990909!B! ! !N!Z!D!N!V!1!001!N!1A!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $20.8 million to THE BOEING COMPANY for work described as: 200606!000108!5700!FA8102!OC-ALC/LAD !F3365701D2050 !A!N! !N!SD18 ! !20060308!20071231!076200344!076200344!009256819!N!MCDONNELL DOUGLAS CORPORATION !2401 E WARDLOW ROAD !LONG BEACH !CA!90807!43000!037!06!LONG BEACH !LOS … Key points: 1. Contract awarded to The Boeing Company for aircraft manufacturing. 2. Significant portion of the contract value is for research, development, testing, and evaluation. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is dominated by large prime contractors, limiting small business opportunities.
Value Assessment
Rating: questionable
The contract value of $24.6 million is substantial. Without a competitive process, it is difficult to assess if this represents fair and reasonable pricing compared to similar aircraft manufacturing contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was not competed, which limits the government's ability to ensure the best possible price through market forces. This approach may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition could result in the government paying more than necessary for the goods or services provided.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Limited transparency in the pricing of this significant defense contract. Potential for reduced innovation if non-competitive awards become standard.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Undisclosed scope of work
Positive Signals
- Awarded to a major defense contractor
- Supports critical aircraft manufacturing
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is typically high and often involves complex, long-term procurements.
Small Business Impact
The contract was awarded to a large prime contractor, The Boeing Company. There is no indication of subcontracting opportunities for small businesses in the provided data, suggesting limited direct impact.
Oversight & Accountability
The non-competitive nature of this award warrants scrutiny from oversight bodies to ensure proper justification and fair pricing. Transparency in the award process is crucial for accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding
- Cost-plus contract type
- Limited transparency on scope and justification
- Potential for inflated costs
- Minimal small business participation indicated
Tags
aircraft-manufacturing, department-of-defense, ok, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.8 million to THE BOEING COMPANY. 200606!000108!5700!FA8102!OC-ALC/LAD !F3365701D2050 !A!N! !N!SD18 ! !20060308!20071231!076200344!076200344!009256819!N!MCDONNELL DOUGLAS CORPORATION !2401 E WARDLOW ROAD !LONG BEACH !CA!90807!43000!037!06!LONG BEACH !LOS ANGELES !CALIFORNIA!+000004171722!N!N!000000000000!AJ43!RDTE/ENGINEERING SCIENCES - ADV TECH DEV !A1A!AIRFRAMES AND SPARES !288 !B1-B CMUP !336413!E! !5!B!S! ! ! !999
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 $20.8 million.
What is the period of performance?
Start: 2006-03-08. End: 2008-06-30.
What specific aircraft components or services are being procured under this contract, and why was competition deemed unnecessary?
The provided data indicates the contract is for 'Aircraft Manufacturing' and related 'RDTE/ENGINEERING SCIENCES - ADV TECH DEV'. However, the specific details of the components or services are not disclosed. The reason for not competing the award is also absent, which is a critical piece of information for assessing value and necessity.
What are the potential risks associated with a cost-plus incentive contract awarded without competition?
Cost-plus incentive contracts can incentivize contractors to increase costs to achieve higher profits if not carefully structured. Awarding such a contract without competition removes the pressure of market forces to control costs, increasing the risk of overspending and potentially leading to less efficient project execution.
How does the lack of competition impact the government's ability to ensure the effectiveness of the acquired aircraft manufacturing capabilities?
Without competition, the government misses the opportunity to evaluate different approaches and innovations from multiple vendors. This can limit the potential for acquiring the most effective or advanced manufacturing solutions. It also reduces the leverage the government has to negotiate terms that ensure optimal performance and long-term effectiveness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE (V)
Evaluated Preference: NONE
Contractor Details
Address: 2600 WESTMINSTER AVE, SEAL BEACH, CA, 47
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: F3365701D2050
IDV Type: IDC
Timeline
Start Date: 2006-03-08
Current End Date: 2008-06-30
Potential End Date: 2008-06-30 00:00:00
Last Modified: 2014-09-18
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