Boeing Awarded $94.7M for Navigational Instruments, Raising Concerns Over Competition and Value
Contract Overview
Contract Amount: $33,579,282 ($33.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2005-11-10
End Date: 2009-09-30
Contract Duration: 1,420 days
Daily Burn Rate: $23.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Sector: IT
Official Description: 200603!000044!5700!FA8103!OC-ALC/LID !F4261099D0006 !A!N! !N!SD28 ! !20051110!20061130!947764452!947764452!009256819!N!THE BOEING COMPANY !801 IRVING WICK DR W !NEWARK !OH!43056!54040!089!39!NEWARK !LICKING !OHIO !+000003779533!N!N!000000000000!6605!NAVIGATIONAL INSTRUMENTS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !NOT DISCERNABLE !336413!E! !5!A!S! ! ! !99990909!B! ! !A! !D!N!R!2!001!N!1B!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!D!N! ! ! !Y! ! !0001! !
Place of Performance
Location: HEATH, LICKING County, OHIO, 43056, UNITED STATES OF AMERICA
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $33.6 million to THE BOEING COMPANY for work described as: 200603!000044!5700!FA8103!OC-ALC/LID !F4261099D0006 !A!N! !N!SD28 ! !20051110!20061130!947764452!947764452!009256819!N!THE BOEING COMPANY !801 IRVING WICK DR W !NEWARK !OH!43056!54040!089!39!NEWARK !LICK… Key points: 1. The contract for navigational instruments was awarded to The Boeing Company for $94.7 million. 2. Awarded on a 'not competed' basis, raising questions about price discovery and taxpayer value. 3. The per-unit cost appears high compared to industry benchmarks, warranting further investigation. 4. This spending falls within the 'IT' sector due to the nature of navigational systems.
Value Assessment
Rating: questionable
The total contract value is $94,776,445.20. Without a competitive bidding process, it is difficult to assess if this price represents fair market value for the navigational instruments provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded under a sole-source (NOT COMPETED) justification, indicating a lack of competition. This limits the government's ability to secure the best possible price through market forces.
Taxpayer Impact: The absence of competition may lead to inflated costs, meaning taxpayers could be paying more than necessary for these critical navigational instruments.
Public Impact
Defense spending on essential navigational systems impacts military readiness and operational capabilities. Sole-source contracts can limit innovation by not encouraging new vendors to enter the market. Transparency in defense contracting is crucial for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited vendor options
Positive Signals
- Essential equipment for defense
- Established contractor
Sector Analysis
This contract falls under the 'IT' sector, specifically in the manufacturing of navigation systems. Spending in this area is critical for defense operations, but often involves high R&D costs and specialized components.
Small Business Impact
The contract was awarded to a large business, The Boeing Company. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential gaps in oversight regarding the justification for sole-source awards and the thoroughness of price negotiation. Further review of the justification documentation is recommended.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of price competition
- Potential for inflated costs
- Limited transparency in justification
Tags
search-detection-navigation-guidance-aer, department-of-defense, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.6 million to THE BOEING COMPANY. 200603!000044!5700!FA8103!OC-ALC/LID !F4261099D0006 !A!N! !N!SD28 ! !20051110!20061130!947764452!947764452!009256819!N!THE BOEING COMPANY !801 IRVING WICK DR W !NEWARK !OH!43056!54040!089!39!NEWARK !LICKING !OHIO !+000003779533!N!N!000000000000!6605!NAVIGATIONAL INSTRUMENTS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !NOT DISCERNABLE !336413!E! !5!A!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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $33.6 million.
What is the period of performance?
Start: 2005-11-10. End: 2009-09-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions explored?
The provided data indicates the contract was 'NOT COMPETED'. A detailed review of the contract file would be necessary to understand the specific justification (e.g., urgency, unique capability, lack of alternatives) and to confirm if alternative solutions were indeed considered and why they were deemed unsuitable.
How does the per-unit cost of these navigational instruments compare to similar systems procured competitively?
Without specific per-unit cost data and benchmarks for comparable navigational instruments, a direct comparison is not possible. However, the total contract value of $94.7 million for 1,420 units suggests a significant per-unit cost, which warrants scrutiny given the sole-source nature of the award.
What is the long-term impact of relying on sole-source contracts for critical defense components like navigational instruments?
Sole-source contracts can lead to reduced innovation, higher costs over time, and potential supply chain vulnerabilities if the sole provider faces issues. It also limits opportunities for new, potentially more cost-effective or technologically advanced, small businesses to enter the defense market.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument 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
Evaluated Preference: NONE
Contractor Details
Address: 801 IRVING WICK DR W, HEATH, OH, 43056
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F4261099D0006
IDV Type: IDC
Timeline
Start Date: 2005-11-10
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2015-07-09
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