DoD awards Boeing $27.5M for PBL Material, raising concerns about sole-source procurement
Contract Overview
Contract Amount: $27,541,917 ($27.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-08-09
End Date: 2023-10-08
Contract Duration: 425 days
Daily Burn Rate: $64.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8509208844!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 $27.5 million to THE BOEING COMPANY for work described as: 8509208844!PBL MATERIAL BOEING Key points: 1. Significant award to a single, large defense contractor. 2. Lack of competition suggests potential for inflated pricing. 3. Sole-source nature raises questions about taxpayer value. 4. Focus on aircraft parts places this within the defense industrial base.
Value Assessment
Rating: questionable
The $27.5 million award to Boeing for PBL Material is substantial. Without competitive bids, it's difficult to assess if this price represents fair market value 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 in this sole-source award may result in taxpayers paying more than necessary for these aircraft parts.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Reliance on a single supplier could impact long-term supply chain resilience. The Department of Defense continues to award large sums to major defense contractors without open competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- Potential for price inflation
Positive Signals
- Award to established defense contractor
- Firm fixed price contract
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the defense industrial base. Spending in this area is often dominated by a few large, established contractors.
Small Business Impact
The contract was awarded to The Boeing Company, a major prime contractor, and there is no indication of small business participation. This award does not appear to benefit small businesses.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the government is receiving fair value. Accountability for the justification of non-competitive procurement is crucial.
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 on justification
- No small business participation indicated
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 $27.5 million to THE BOEING COMPANY. 8509208844!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 $27.5 million.
What is the period of performance?
Start: 2022-08-09. End: 2023-10-08.
What is the justification for awarding this contract on a sole-source basis?
The justification for this sole-source award is not provided in the data. Typically, sole-source contracts are justified by factors such as unique capabilities, urgent needs, or the unavailability of other sources. Further investigation would be required to understand the specific rationale behind this decision and whether it truly serves the government's best interest.
How does the firm fixed price protect against cost overruns in a sole-source scenario?
A firm fixed price (FFP) contract establishes a ceiling price that the contractor must not exceed, regardless of their actual costs. While FFP shifts cost risk to the contractor, it does not guarantee a fair price in a sole-source situation. The government still bears the risk of paying an inflated price if the baseline price was not competitively determined or properly negotiated.
What is the potential impact on future competition for similar aircraft parts?
Sole-source awards can stifle future competition by reinforcing the incumbent's market position and potentially discouraging other firms from investing in capabilities or bidding on future solicitations. If Boeing is the only viable supplier for this specific PBL Material, it could create a long-term dependency and limit the government's options and negotiating 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 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: $27,541,917
Exercised Options: $27,541,917
Current Obligation: $27,541,917
Subaward Activity
Number of Subawards: 226
Total Subaward Amount: $111,382,616
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPRPA122D0001
IDV Type: IDC
Timeline
Start Date: 2022-08-09
Current End Date: 2023-10-08
Potential End Date: 2023-10-08 00:00:00
Last Modified: 2025-03-13
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