DoD awards $74.6M for aircraft parts to Boeing, raising concerns about competition and value
Contract Overview
Contract Amount: $74,653,633 ($74.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-04-02
End Date: 2020-06-09
Contract Duration: 434 days
Daily Burn Rate: $172.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8506418418!PERFORMANCE BASED SUPPORT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $74.7 million to THE BOEING COMPANY for work described as: 8506418418!PERFORMANCE BASED SUPPORT Key points: 1. Significant contract value awarded to a single large vendor. 2. Lack of competition raises questions about price reasonableness. 3. Potential for higher costs due to sole-source nature. 4. Focus on aircraft parts manufacturing within the defense sector.
Value Assessment
Rating: questionable
The contract value of $74.6M for aircraft parts is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts or industry benchmarks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to less favorable terms for the government compared to a competitive process.
Taxpayer Impact: The lack of competition could result in taxpayers paying a premium for these aircraft parts.
Public Impact
Taxpayers may be overpaying for essential aircraft components. Reliance on a single vendor could impact supply chain resilience. Limited transparency into the justification for a sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited small business participation
Positive Signals
- Performance-based contract type
- Awarded to a major defense contractor
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically for aircraft parts. Spending in this area is critical for military readiness, but often involves complex supply chains and specialized production.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense received the best possible value and that the justification for bypassing competition 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 lacks transparency.
- Potential for overpayment due to lack of competition.
- Limited visibility into pricing justification.
- Risk of vendor lock-in.
- No indication of small business subcontracting.
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 $74.7 million to THE BOEING COMPANY. 8506418418!PERFORMANCE BASED 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 $74.7 million.
What is the period of performance?
Start: 2019-04-02. End: 2020-06-09.
What was the specific justification for awarding this contract on a sole-source basis?
The provided data does not specify the justification for the sole-source award. Typically, such justifications include reasons like urgency, unique capabilities of the vendor, or lack of adequate competition. A thorough review would require access to the contract's justification and approval (J&A) document.
How does the unit cost of these aircraft parts compare to industry benchmarks?
Without specific part numbers and quantities, a direct unit cost comparison is not possible. However, given the sole-source nature and the absence of competitive bidding, there is a heightened risk that the per-unit cost may be higher than what could be achieved through a competitive process.
What is the potential impact on future procurement strategies if sole-source awards become common for these types of parts?
If sole-source awards become common for these parts, it could stifle innovation and competition within the defense industrial base. It may also lead to sustained higher costs for the government and reduce the incentive for vendors to offer competitive pricing.
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: $74,653,633
Exercised Options: $74,653,633
Current Obligation: $74,653,633
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $293,271
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRPA114D002U
IDV Type: IDC
Timeline
Start Date: 2019-04-02
Current End Date: 2020-06-09
Potential End Date: 2020-06-09 00:00:00
Last Modified: 2025-04-24
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