Boeing Awarded $46M for PBL Material Support, Raising Concerns Over Sole-Source Procurement
Contract Overview
Contract Amount: $46,076,085 ($46.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-09-29
End Date: 2021-11-18
Contract Duration: 415 days
Daily Burn Rate: $111.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8507689086!PBL MATERIAL SUPPORT BOEING
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $46.1 million to THE BOEING COMPANY for work described as: 8507689086!PBL MATERIAL SUPPORT BOEING Key points: 1. Significant contract value awarded to a single large business. 2. Lack of competition raises questions about price reasonableness. 3. Potential for higher costs due to sole-source nature. 4. Focus on aircraft manufacturing within the defense sector.
Value Assessment
Rating: questionable
The contract value of $46,076,085 is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives for PBL material support.
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 limits price discovery and may lead to less favorable terms for the government.
Taxpayer Impact: The lack of competition could result in taxpayers paying a premium for these materials and support services.
Public Impact
Taxpayers may be overpaying for essential aircraft parts and support. Reliance on a single supplier can create vulnerabilities in the supply chain. Limited transparency into the justification for sole-source procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
- Limited small business participation
Positive Signals
- Award to established large business
- Specific material support for aircraft
Sector Analysis
This contract falls within the aircraft manufacturing sector, specifically for PBL (Performance-Based Logistics) material support. Defense Logistics Agency spending in this area is critical for maintaining military aviation readiness.
Small Business Impact
The contract data indicates no specific set-aside for small businesses, and the awardee is a large corporation. This suggests limited direct opportunities for small businesses on this particular contract.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense received fair value and that competition was appropriately waived.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency
- No small business set-aside
Tags
aircraft-manufacturing, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.1 million to THE BOEING COMPANY. 8507689086!PBL MATERIAL SUPPORT BOEING
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 $46.1 million.
What is the period of performance?
Start: 2020-09-29. End: 2021-11-18.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
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 specific documentation, it's unclear if alternatives were explored or if this was deemed the only viable option by the agency.
How does the pricing of this sole-source contract compare to historical data or industry benchmarks for similar PBL material support?
Assessing the pricing requires access to internal government cost analyses or industry benchmarks for comparable PBL material support contracts. Given the sole-source nature, a direct comparison is challenging, but the Defense Contract Audit Agency (DCAA) may have reviewed the price reasonableness.
What measures are in place to ensure the effectiveness and timely delivery of PBL material support under this contract?
Performance-based logistics contracts usually include specific performance metrics and incentives tied to delivery, quality, and availability. The contract's duration and the agency's oversight are key to ensuring these performance standards are met and that the support effectively maintains aircraft readiness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: SPRPA118R002U
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: $46,076,085
Exercised Options: $46,076,085
Current Obligation: $46,076,085
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $449,700
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRPA120D005U
IDV Type: IDC
Timeline
Start Date: 2020-09-29
Current End Date: 2021-11-18
Potential End Date: 2021-11-18 00:00:00
Last Modified: 2022-03-17
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