Boeing Awarded $68.4M for NAVAIR IPS, Lacking Competition
Contract Overview
Contract Amount: $68,370,026 ($68.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-12-20
End Date: 2023-01-01
Contract Duration: 12 days
Daily Burn Rate: $5.7M/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NAVAIR IPS
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $68.4 million to THE BOEING COMPANY for work described as: NAVAIR IPS Key points: 1. Significant contract value of $68.4M awarded to a single large business. 2. Sole-source award raises concerns about potential overpricing and lack of innovation. 3. Limited contract duration of 12 months may indicate a short-term need or phased approach. 4. The award falls within the 'Other Aircraft Parts' NAICS code, a critical defense sector.
Value Assessment
Rating: questionable
The contract's value of $68.4M for a 12-month period, awarded sole-source, makes a direct pricing comparison difficult. Without competitive bids, it's challenging to ascertain if this represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The absence of competition for this $68.4M contract raises concerns about taxpayer value and the potential for inflated costs.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. Reduced innovation and efficiency are possible outcomes of sole-source contracts. The defense sector relies on timely procurement, but competitive processes ensure better value.
Waste & Efficiency Indicators
Waste Risk Score: 57 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Limited duration
Positive Signals
- Awarded to a known large business contractor
- Firm Fixed Price contract type
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is crucial for maintaining military aviation readiness. Spending in this sector is often substantial due to the specialized nature of the components and the high standards required.
Small Business Impact
This contract was awarded to a large business and did not include any small business set-aside provisions. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense received fair pricing and that the procurement process was justified. Further review of the justification for sole-sourcing is recommended.
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 competition
- Potential for overpricing
- Limited duration may require future procurements
- 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 $68.4 million to THE BOEING COMPANY. NAVAIR IPS
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 $68.4 million.
What is the period of performance?
Start: 2022-12-20. End: 2023-01-01.
What is the justification for awarding this contract sole-source to The Boeing Company?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent and compelling needs where only one source can fulfill the requirement. Without access to the specific justification documentation, it's impossible to confirm the exact reasons. However, such awards are subject to strict regulations to prevent abuse and ensure necessity.
What is the potential risk to taxpayers if this contract was not competitively bid?
The primary risk to taxpayers is paying a higher price than would have been achieved through competition. Sole-source contracts can also lead to reduced innovation, less efficient performance, and a lack of urgency from the contractor, as there is no competitive pressure to improve. This can result in a suboptimal use of public funds.
How does the limited contract duration impact the overall effectiveness and value?
A short 12-month duration might suggest a need for immediate support or a phased approach to a larger requirement. While it allows for quicker initial procurement, it necessitates future contract actions, potentially leading to recurring administrative costs and the risk of contract consolidation or re-competition later. It also limits the contractor's incentive for long-term investment in efficiency improvements.
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 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: $68,370,026
Exercised Options: $68,370,026
Current Obligation: $68,370,026
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $2,122,910
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: 2022-12-20
Current End Date: 2023-01-01
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2024-02-29
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