DoD awards Boeing $64.5M for F18 Integrated Product Services in 2021
Contract Overview
Contract Amount: $64,542,209 ($64.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-01-01
End Date: 2021-12-31
Contract Duration: 364 days
Daily Burn Rate: $177.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: YEARLY DO FOR INTEGRATED PRODUCT SERVICES IN SUPPORT OF F18
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $64.5 million to THE BOEING COMPANY for work described as: YEARLY DO FOR INTEGRATED PRODUCT SERVICES IN SUPPORT OF F18 Key points: 1. Significant contract value for specialized aircraft support. 2. Sole-source award to Boeing raises competition concerns. 3. Potential for higher costs due to lack of competition. 4. Focus on defense sector, specifically F18 aircraft sustainment.
Value Assessment
Rating: fair
The $64.5M award for integrated product services for the F18 is a substantial amount. Without competitive bidding, it's difficult to benchmark against similar contracts, but the firm fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to The Boeing Company. The lack of competition limits price discovery and may result in a higher overall cost to the government compared to a competed procurement.
Taxpayer Impact: Taxpayer funds are used for this contract. The absence of competition could lead to less efficient use of these funds.
Public Impact
Ensures continued operational readiness for the F18 fighter jet fleet. Supports a critical component of national defense capabilities. Impacts the aerospace and defense manufacturing sector through a large award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Potential for inflated pricing without competitive pressure
Positive Signals
- Supports critical defense asset (F18)
- Firm fixed-price contract provides cost certainty
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically supporting the sustainment of F18 aircraft. Spending in this area is crucial for maintaining military readiness, but competitive sourcing is often a challenge for specialized, legacy platforms.
Small Business Impact
This contract was awarded to a large prime contractor, The Boeing Company. There is no indication of subcontracting opportunities for small businesses within this specific award data.
Oversight & Accountability
The Department of Defense, through the Defense Logistics Agency, awarded this contract. Oversight would focus on contract performance, delivery, and adherence to the firm fixed-price terms to ensure value for money.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency in pricing
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 $64.5 million to THE BOEING COMPANY. YEARLY DO FOR INTEGRATED PRODUCT SERVICES IN SUPPORT OF F18
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 $64.5 million.
What is the period of performance?
Start: 2021-01-01. End: 2021-12-31.
What is the justification for the sole-source award to Boeing for F18 integrated product services?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the need for seamless integration with existing systems that only one contractor can provide. For the F18, Boeing's role as the original manufacturer likely necessitates their involvement for specialized support, though the specific rationale for excluding competition needs further investigation.
How does the lack of competition impact the long-term cost of F18 sustainment?
A sole-source award can lead to higher long-term costs as the government lacks the leverage of competitive bidding to drive down prices. Without market pressure, the contractor may not be incentivized to optimize costs as aggressively. This can result in a sustained premium over what might be achievable through a competitive process.
What are the risks associated with relying on a single supplier for critical aircraft support services?
The primary risk is the potential for price gouging and reduced innovation due to the absence of competitive pressure. Additionally, reliance on a single supplier can create vulnerabilities in the supply chain and reduce flexibility if the contractor faces financial difficulties or operational disruptions. This dependence can also limit the government's bargaining power.
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: $64,542,209
Exercised Options: $64,542,209
Current Obligation: $64,542,209
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $1,271,058
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: 2021-01-01
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2023-01-18
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