DoD Awards $23.4M for P-8 Support to Boeing, Raising Concerns Over Competition
Contract Overview
Contract Amount: $23,411,595 ($23.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-08-03
End Date: 2025-06-30
Contract Duration: 697 days
Daily Burn Rate: $33.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SUPPORT FOR P-8 UNDER COI
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: SUPPORT FOR P-8 UNDER COI Key points: 1. Significant contract value awarded to a single, established vendor. 2. Lack of competition may lead to suboptimal pricing and innovation. 3. Potential risk of vendor lock-in and reduced market responsiveness. 4. Spending falls within the broad Defense sector, specifically aircraft parts.
Value Assessment
Rating: questionable
The contract value of $23.4M for P-8 support is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives or previous contracts for similar services.
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 may prevent the government from securing the best possible value through market competition.
Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for P-8 support services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Reliance on a single vendor for critical aircraft support could pose a long-term risk. Limited transparency into the pricing justification for this sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
- Vendor lock-in risk
Positive Signals
- Supports critical P-8 aircraft
- Awarded to established vendor
Sector Analysis
This contract falls under the Defense sector, specifically for aircraft parts and auxiliary equipment. Spending benchmarks for sole-source awards in this category are often higher than for competed contracts.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this sole-source award to The Boeing Company.
Oversight & Accountability
The non-competitive nature of this award warrants scrutiny to ensure the government's interests are protected and that the pricing is justified. Further oversight may be needed to understand the rationale for not competing.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competition
- Potential for price gouging
- Vendor lock-in
- Limited transparency
- No small business participation noted
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. SUPPORT FOR P-8 UNDER COI
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: 2023-08-03. End: 2025-06-30.
What is the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without further details, it's unclear if these criteria were met. A thorough review would examine the specific circumstances that led to this decision and whether alternative sources were genuinely unavailable or impractical to engage.
What is the potential financial risk to taxpayers due to the lack of competition?
The primary financial risk is the potential for inflated pricing. Without competitive pressure, the awarded vendor may not offer the most cost-effective solution. Benchmarking against similar sole-source contracts or historical data for this platform could reveal if the price is above market rates, leading to taxpayer overspending.
How does this sole-source award impact the long-term effectiveness and availability of P-8 support?
Sole-source awards can reduce long-term effectiveness by limiting innovation and creating vendor dependency. If Boeing is the only provider, the DoD may face challenges if Boeing's pricing increases significantly or if their service quality declines, with few alternatives to switch to.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
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: $30,065,270
Exercised Options: $23,411,595
Current Obligation: $23,411,595
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPRPA123D9003
IDV Type: IDC
Timeline
Start Date: 2023-08-03
Current End Date: 2025-06-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-03-27
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