Boeing Awarded $24.4M for B-1 Dorsal Longerons Repair, Lacking Competition
Contract Overview
Contract Amount: $24,425,677 ($24.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2008-01-08
End Date: 2012-12-31
Contract Duration: 1,819 days
Daily Burn Rate: $13.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: REPAIR OF B-1 DORSAL LONGERON
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $24.4 million to THE BOEING COMPANY for work described as: REPAIR OF B-1 DORSAL LONGERON Key points: 1. Significant contract value for aircraft component repair. 2. Sole-source award to Boeing raises questions about competition. 3. Potential risk associated with single-source reliance for critical parts. 4. Spending falls within the Defense sector, specifically aircraft manufacturing.
Value Assessment
Rating: questionable
The contract value of $24.4M for repair services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar repair contracts.
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 lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely results in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Taxpayers may be overpaying for essential aircraft repair services. Reliance on a single contractor for critical components could impact aircraft readiness. Lack of transparency in the procurement process hinders public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Contract awarded to established manufacturer
- Addresses critical repair need
Sector Analysis
This contract falls under the Defense sector, specifically aircraft manufacturing. Spending on aircraft repair and maintenance is a significant component of the DoD budget, with benchmarks varying widely based on aircraft type and repair complexity.
Small Business Impact
This contract was awarded directly to The Boeing Company and does not indicate any subcontracting opportunities for small businesses. The nature of specialized aircraft repair often favors large, established manufacturers.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received the best possible value and that the procurement process was justified.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited transparency in procurement.
- Dependency on a single supplier.
- No clear small business participation.
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 $24.4 million to THE BOEING COMPANY. REPAIR OF B-1 DORSAL LONGERON
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 $24.4 million.
What is the period of performance?
Start: 2008-01-08. End: 2012-12-31.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without detailed documentation, it's impossible to confirm the specific justification. However, the lack of competition inherently limits price discovery, making it crucial for the agency to have robust internal cost analysis or rely on historical pricing data to mitigate potential overpayment.
What are the risks associated with relying solely on Boeing for the repair of B-1 dorsal longerons?
The primary risk is a lack of competitive pressure, which can lead to inflated prices and reduced incentive for efficiency. Furthermore, over-reliance on a single supplier for critical components can create vulnerabilities in the supply chain. If Boeing experiences production issues or price increases, it could directly impact the availability and cost of essential repairs for the B-1 bomber fleet, potentially affecting operational readiness.
How does this contract's pricing compare to industry benchmarks for similar aircraft component repairs?
Without access to the specific repair details, labor hours, and parts involved, a direct comparison to industry benchmarks is challenging. However, the absence of competition suggests that the pricing may not have been optimized through market forces. Agencies typically use cost-reimbursement or time-and-materials contracts with established rates for such repairs, but the lack of competitive bids makes it difficult to ascertain if these rates are truly competitive.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 2600 WESTMINSTER AVE, SEAL BEACH, CA, 90740
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $29,972,261
Exercised Options: $29,972,261
Current Obligation: $24,425,677
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F3365701D2050
IDV Type: IDC
Timeline
Start Date: 2008-01-08
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2017-05-15
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