DoD awards Boeing $23.4M for PBL Material, impacting Other Aircraft Parts Manufacturing
Contract Overview
Contract Amount: $23,444,777 ($23.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-12-18
End Date: 2025-04-07
Contract Duration: 1,571 days
Daily Burn Rate: $14.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8507866635!PBL MATERIAL BOEING
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $23.4 million to THE BOEING COMPANY for work described as: 8507866635!PBL MATERIAL BOEING Key points: 1. Significant contract value awarded to a major defense contractor. 2. Lack of competition raises concerns about price discovery. 3. Potential for cost overruns due to sole-source nature. 4. Sector focus on aircraft parts manufacturing.
Value Assessment
Rating: questionable
The contract value of $23.4M for PBL Material is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts for aircraft parts.
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 potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these aircraft parts.
Public Impact
Ensures availability of critical aircraft parts for the Department of Defense. Supports a major defense contractor, potentially impacting jobs and supply chains. Raises questions about the government's procurement strategy for essential components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Supports critical defense needs
- Awarded to a known, established supplier
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military aviation readiness. Benchmarks are difficult without competitive data.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of small business participation in this specific award, suggesting limited direct benefit to SMBs.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste, fraud, or abuse. Accountability for performance and cost management is critical.
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 price gouging
- Limited transparency in pricing
- Long contract duration
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 $23.4 million to THE BOEING COMPANY. 8507866635!PBL MATERIAL 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 $23.4 million.
What is the period of performance?
Start: 2020-12-18. End: 2025-04-07.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. The Department of Defense should have documented this justification. To ensure fair pricing, they may rely on historical pricing, independent cost estimates, or price analysis techniques, though competitive benchmarking is absent.
What are the potential risks associated with awarding a contract of this value without competition?
The primary risk is paying an inflated price due to the absence of competitive pressure. Other risks include reduced innovation, potential for contractor complacency, and the government becoming locked into a single supplier, limiting future flexibility and potentially increasing long-term costs.
How does this contract contribute to the overall effectiveness of the Department of Defense's aviation assets?
This contract is likely crucial for ensuring the continued operational readiness and maintenance of specific DoD aircraft. By securing a supply of essential parts, it directly supports the availability and performance of critical defense assets, contributing to mission effectiveness.
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 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: $23,444,777
Exercised Options: $23,444,777
Current Obligation: $23,444,777
Subaward Activity
Number of Subawards: 24
Total Subaward Amount: $7,230,070
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPRPA121D9002
IDV Type: IDC
Timeline
Start Date: 2020-12-18
Current End Date: 2025-04-07
Potential End Date: 2026-06-06 00:00:00
Last Modified: 2025-11-19
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