Boeing Awarded $69.6M DoD Contract for Aircraft Parts, Lacking Competition
Contract Overview
Contract Amount: $69,621,097 ($69.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-05-17
End Date: 2019-07-18
Contract Duration: 427 days
Daily Burn Rate: $163.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8505500483!PERFORMANCE BASE SUPPORT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $69.6 million to THE BOEING COMPANY for work described as: 8505500483!PERFORMANCE BASE SUPPORT Key points: 1. Significant contract value awarded to a single large business. 2. Sole-source award raises concerns about price discovery and potential overpayment. 3. Lack of competition limits opportunities for small businesses in this sector. 4. Contract duration of 427 days suggests a need for ongoing support.
Value Assessment
Rating: questionable
The contract value of $69.6M for aircraft parts is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts for aircraft components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, The Boeing Company, was solicited. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award could result in taxpayers paying more than necessary for these aircraft parts.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The sole-source nature of the award limits opportunities for other manufacturers, potentially impacting market innovation. Dependence on a single supplier for critical aircraft parts could pose a supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- No small business participation
- High contract value
Positive Signals
- Awarded to a major defense contractor
- Supports critical aircraft parts
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military readiness, but competitive procurement is vital to ensure cost-effectiveness.
Small Business Impact
The data indicates no small business participation in this contract, which is a concern given the significant value. This sole-source award to a large business missed an opportunity to engage smaller, specialized suppliers.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense received fair pricing and that the justification for not competing the contract was robust.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits price competition.
- No small business participation.
- Potential for overpayment due to lack of competition.
- Dependence on a single supplier.
- Contract duration may indicate ongoing need, requiring future competitive opportunities.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.6 million to THE BOEING COMPANY. 8505500483!PERFORMANCE BASE SUPPORT
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 Logistics Agency).
What is the total obligated amount?
The obligated amount is $69.6 million.
What is the period of performance?
Start: 2018-05-17. End: 2019-07-18.
What was the specific justification for awarding this contract on a sole-source basis, and was a market research analysis conducted to confirm the absence of viable competitive sources?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or the unavailability of other sources. A thorough market research analysis is crucial to validate these claims and ensure that competitive options were genuinely explored and found insufficient before proceeding with a sole-source procurement.
How does the per-unit cost of these aircraft parts compare to industry benchmarks or previous contracts for similar items, especially considering the lack of competition?
Without competitive bids, establishing a precise benchmark is challenging. However, a post-award analysis comparing the awarded prices to publicly available data for similar components, or to historical pricing from competitive contracts, could reveal potential cost inefficiencies. The absence of competition inherently raises the risk of prices being higher than they would be in a competitive environment.
What measures are in place to ensure the quality and timely delivery of these critical aircraft parts, given the sole-source award to a single large contractor?
Oversight mechanisms such as performance metrics, quality assurance surveillance plans (QASPs), and regular progress reviews are essential. The contracting agency should actively monitor Boeing's performance against contract requirements to ensure parts meet specifications and are delivered on schedule, mitigating risks associated with a single supplier.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134
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: $69,621,097
Exercised Options: $69,621,097
Current Obligation: $69,621,097
Subaward Activity
Number of Subawards: 50
Total Subaward Amount: $6,277,415
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRPA114D002U
IDV Type: IDC
Timeline
Start Date: 2018-05-17
Current End Date: 2019-07-18
Potential End Date: 2019-07-18 00:00:00
Last Modified: 2019-10-03
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