DoD awards $34M to Boeing for mechanical actuators, raising concerns about limited competition
Contract Overview
Contract Amount: $34,009,788 ($34.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-07-19
End Date: 2024-04-15
Contract Duration: 1,001 days
Daily Burn Rate: $34.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ACTUATOR,MECHANICAL
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $34.0 million to THE BOEING COMPANY for work described as: ACTUATOR,MECHANICAL Key points: 1. Significant contract value of $34M for aircraft parts. 2. Sole reliance on Boeing suggests potential lack of competitive pricing. 3. Limited competition poses a risk to achieving best value for taxpayers. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'.
Value Assessment
Rating: questionable
The contract value of $34M for mechanical actuators is substantial. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar contracts or alternative suppliers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may lead to higher costs for the government as there is no direct comparison with other potential suppliers.
Taxpayer Impact: The lack of competition for this $34M contract means taxpayers may not be receiving the most cost-effective solution available.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Dependence on a single supplier can create supply chain vulnerabilities. The DoD's procurement strategy here warrants closer examination for future contracts.
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
- Contract awarded to a major defense contractor
- Clear delivery timeline
Sector Analysis
The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is critical for defense readiness. Spending benchmarks in this area are often influenced by proprietary technology and specialized production capabilities, making direct comparisons challenging but competition vital.
Small Business Impact
The data indicates no specific small business set-aside or participation. For sole-source contracts of this magnitude, ensuring opportunities for small businesses in the supply chain or through subcontracting is often overlooked.
Oversight & Accountability
The 'NOT COMPETED' status for a $34M contract necessitates robust oversight to ensure the justification for sole-source procurement is sound and that the pricing is reasonable, despite the lack of competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs due to no competition.
- Limited transparency on price justification.
- Risk of supply chain disruption if Boeing faces issues.
- Missed opportunity for small business engagement.
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 $34.0 million to THE BOEING COMPANY. ACTUATOR,MECHANICAL
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 $34.0 million.
What is the period of performance?
Start: 2021-07-19. End: 2024-04-15.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or urgent and compelling needs where only one source can reasonably fulfill the requirement. Without this information, it's difficult to assess if the lack of competition was unavoidable or a missed opportunity for cost savings.
How was the price determined to be fair and reasonable without competition?
Price reasonableness for sole-source contracts is often determined through cost analysis, comparison to historical prices for similar items, or market research on commercial equivalents. However, without competitive bids, the government has less leverage to negotiate the lowest possible price, increasing the risk of overpayment.
What is the long-term strategy for procuring these mechanical actuators to ensure future cost-effectiveness?
The long-term strategy should explore options for introducing competition, such as developing alternative sources, encouraging new entrants into the market, or re-evaluating the necessity of sole-source procurement for future requirements. This proactive approach can mitigate risks and ensure better value over time.
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
Solicitation ID: SPRPA117R002U
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: $34,009,788
Exercised Options: $34,009,788
Current Obligation: $34,009,788
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $17,179,290
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: 2021-07-19
Current End Date: 2024-04-15
Potential End Date: 2028-08-31 00:00:00
Last Modified: 2024-11-26
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