DoD Spends $27M on Boeing B-1 Wing Repair, Lacking Competition
Contract Overview
Contract Amount: $27,066,924 ($27.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2012-08-29
End Date: 2015-12-04
Contract Duration: 1,192 days
Daily Burn Rate: $22.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: B-1 WING LOWER SKIN CRACK REPAIR
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $27.1 million to THE BOEING COMPANY for work described as: B-1 WING LOWER SKIN CRACK REPAIR Key points: 1. Significant expenditure on a critical aircraft component repair. 2. Sole-source award to Boeing raises questions about price discovery. 3. Long contract duration (1192 days) may indicate complexity or inefficiency. 4. Aircraft Manufacturing sector often involves specialized, high-cost components.
Value Assessment
Rating: questionable
The $27 million contract for B-1 wing repair appears high given the lack of competition. Benchmarking against similar sole-source repairs for complex aircraft structures is difficult, but the absence of competitive bidding suggests potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source to The Boeing Company, the original manufacturer. This method limits price discovery and competitive pressure, potentially leading to higher costs for the government.
Taxpayer Impact: Taxpayers bear the cost of a potentially inflated price due to the lack of competitive bidding on this critical aircraft repair.
Public Impact
Ensures continued operational readiness of the B-1 bomber fleet. Supports critical defense capabilities by maintaining aging aircraft. Potential for taxpayer funds to be used inefficiently due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Long duration
Positive Signals
- Maintains critical defense asset
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is typically high due to the complexity and specialized nature of military aircraft components and maintenance. Benchmarks are difficult without specific comparable sole-source repair data.
Small Business Impact
The contract was awarded to The Boeing Company, a large aerospace manufacturer. There is no indication that small businesses were involved in this specific sole-source repair contract, missing an opportunity for their participation.
Oversight & Accountability
The award was managed by the Defense Contract Management Agency (DCMA), suggesting some level of oversight. However, the sole-source nature limits the effectiveness of competitive oversight in ensuring the best price.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Long contract duration could indicate inefficiencies or scope creep.
- High dollar value increases financial risk.
- Reliance on a single contractor for critical repairs.
- Potential for inadequate price negotiation due to sole-source status.
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 $27.1 million to THE BOEING COMPANY. B-1 WING LOWER SKIN CRACK REPAIR
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 $27.1 million.
What is the period of performance?
Start: 2012-08-29. End: 2015-12-04.
What was the justification for awarding this contract sole-source to Boeing, and were alternative repair solutions explored?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent need where only one source can fulfill the requirement. For critical aircraft components like wing structures, the original manufacturer often possesses the specialized knowledge, tooling, and parts. However, a thorough review should confirm that no viable alternatives or competitive options were overlooked, especially given the significant cost and duration.
How does the $27 million cost compare to industry benchmarks for similar complex aircraft structural repairs, particularly those awarded competitively?
Direct comparison is challenging due to the sole-source nature and specificity of the repair. However, competitive bids for similar large-scale structural repairs on military aircraft typically aim for cost efficiencies. If competitive data suggests significantly lower costs for comparable work, this $27 million figure warrants further scrutiny regarding its reasonableness and the potential impact of the lack of competition.
What measures are in place to ensure the long-term effectiveness and airworthiness of the B-1 wing following this extensive repair?
The Defense Contract Management Agency (DCMA) likely oversees the technical execution and quality assurance of the repair to ensure it meets stringent airworthiness standards. This includes inspections, material testing, and adherence to engineering specifications. Post-repair flight testing and ongoing structural health monitoring programs are crucial to validate the repair's effectiveness and ensure the long-term safety and operational capability of the aircraft.
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
Pricing Type: FIRM FIXED PRICE (J)
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: $47,264,862
Exercised Options: $27,091,397
Current Obligation: $27,066,924
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: 2012-08-29
Current End Date: 2015-12-04
Potential End Date: 2015-12-04 00:00:00
Last Modified: 2018-02-23
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