DoD Awards Boeing $49M for PBL Material Support, Raising Concerns Over Limited Competition
Contract Overview
Contract Amount: $49,000,000 ($49.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-09-29
End Date: 2025-09-28
Contract Duration: 1,460 days
Daily Burn Rate: $33.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8508568813!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 $49.0 million to THE BOEING COMPANY for work described as: 8508568813!PBL MATERIAL SUPPORT BOEING Key points: 1. Significant contract value awarded to a single large prime contractor. 2. Sole-source award limits competitive pricing and innovation. 3. Potential for cost overruns due to lack of competitive pressure. 4. Supports critical defense logistics for guided missile and space vehicles.
Value Assessment
Rating: questionable
The $49 million award to Boeing for PBL material support lacks a clear benchmark for value. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives or previous contracts for similar support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method bypasses the typical price discovery mechanisms inherent in competitive procurements, potentially leading to higher costs for the government.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price for these essential materials, as competitive market forces were not leveraged.
Public Impact
Ensures continued availability of critical parts for defense systems. Supports a major aerospace contractor, potentially impacting jobs. Lack of competition may lead to higher long-term sustainment costs for the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost escalation
Positive Signals
- Supports critical defense logistics
- Long-term contract duration
Sector Analysis
This contract falls within the defense sector, specifically supporting guided missile and space vehicle parts. Spending in this area is often characterized by high technical requirements and long-term sustainment needs, where sole-source arrangements can sometimes occur but warrant scrutiny.
Small Business Impact
The contract was awarded directly to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct benefit to the small business sector from this specific award.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of Defense to ensure that Boeing is providing materials at a fair and reasonable price. Accountability will be key to mitigating risks associated with limited competition.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in price discovery.
- Dependency on a single contractor.
- Limited opportunity for small business participation.
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $49.0 million to THE BOEING COMPANY. 8508568813!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 $49.0 million.
What is the period of performance?
Start: 2021-09-29. End: 2025-09-28.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for this sole-source award is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. However, the Department of Defense should have explored all viable competitive options, including market research and potential set-asides, before determining a sole-source approach was necessary.
How will the Department of Defense ensure cost reasonableness without competitive benchmarking?
The Department of Defense will likely rely on robust cost analysis, including reviewing Boeing's cost proposals, historical pricing data, and potentially independent government cost estimates. Negotiation strategies and contract clauses that allow for price adjustments based on future market conditions or audits will be crucial for ensuring cost reasonableness over the contract's life.
What is the long-term strategic impact of relying on a sole-source provider for these critical materials?
Relying on a sole-source provider for critical materials can create long-term dependency and reduce the government's leverage in future negotiations. It may also stifle innovation from other potential suppliers. The DoD should consider strategies for developing alternative sources or ensuring robust competition in future procurements to mitigate these risks.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle 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 JAMES S 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: $49,000,000
Exercised Options: $49,000,000
Current Obligation: $49,000,000
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $13,350,742
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPRPA121D9004
IDV Type: IDC
Timeline
Start Date: 2021-09-29
Current End Date: 2025-09-28
Potential End Date: 2025-09-28 00:00:00
Last Modified: 2021-10-07
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