DoD Awards Boeing $5.5M for PBL Material, Raising Concerns Over Limited Competition
Contract Overview
Contract Amount: $5,531,202 ($5.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-12-15
End Date: 2026-12-28
Contract Duration: 1,109 days
Daily Burn Rate: $5.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8510327585!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 $5.5 million to THE BOEING COMPANY for work described as: 8510327585!PBL MATERIAL BOEING Key points: 1. Significant award to a single, large defense contractor. 2. Lack of competition may lead to suboptimal pricing. 3. Potential for taxpayer funds to be used inefficiently. 4. Focus on aircraft parts manufacturing within the defense sector.
Value Assessment
Rating: questionable
The award of $5.5M to Boeing for PBL material lacks a clear benchmark for comparison due to its specific nature and limited competition. Without competitive bids, it's difficult to assess if the pricing is optimal or reflects market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, indicating a limited source selection. This approach bypasses the price discovery benefits of a competitive bidding process, potentially resulting in higher costs for the government.
Taxpayer Impact: The absence of competition limits the government's ability to secure the best possible price, potentially leading to a less efficient use of taxpayer dollars.
Public Impact
Taxpayers may be overpaying for essential aircraft parts due to a lack of competitive bidding. Reliance on a single large contractor can create vulnerabilities in the supply chain. The Department of Defense's procurement strategy warrants scrutiny for cost-effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award
Positive Signals
- Award to established contractor
- Clear contract duration
Sector Analysis
This award falls within the Defense sector, specifically for aircraft parts manufacturing. Spending in this area is critical for military readiness, but competitive procurement is essential to manage costs effectively.
Small Business Impact
The contract was awarded directly to The Boeing Company, a large prime contractor, with no indication of subcontracting opportunities for small businesses in this specific award.
Oversight & Accountability
The 'NOT COMPETED' designation suggests a potential lapse in competitive oversight. Further review is needed to understand the justification for this limited source selection and ensure accountability.
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 inflation
- Limited transparency in pricing
- Reliance on a single supplier
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, mo, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.5 million to THE BOEING COMPANY. 8510327585!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 $5.5 million.
What is the period of performance?
Start: 2023-12-15. End: 2026-12-28.
What is the justification for not competing this award, and what is the process for determining if a sole-source or limited-source award is truly necessary?
Justification for non-competitive awards typically involves factors like unique capabilities, urgent needs, or the unavailability of alternatives. Agencies must follow strict Federal Acquisition Regulation (FAR) guidelines, often requiring detailed documentation and justification for limiting competition. This process aims to ensure that such awards are only used when genuinely unavoidable and in the best interest of the government.
How does the government ensure fair and reasonable pricing when a contract is not competed, especially with a large, established contractor like Boeing?
When competition is limited, the government relies on 'price analysis' techniques rather than 'cost analysis' from multiple bidders. This involves comparing the proposed price to historical prices for the same or similar items, catalog prices, or prices paid by other government agencies or commercial customers. Certified Cost or Pricing Data may be required for larger awards to ensure transparency and reasonableness.
What are the long-term implications for the defense supply chain and cost management if non-competitive awards to major contractors become a common practice?
A trend towards non-competitive awards can stifle innovation and reduce cost-consciousness among contractors, potentially leading to sustained higher prices for defense articles and services. It can also create dependencies on specific suppliers, increasing supply chain risks. Over time, this could negatively impact the overall efficiency and affordability of national defense.
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: $5,531,202
Exercised Options: $5,531,202
Current Obligation: $5,531,202
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $2,175,291
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPRPA121D9002
IDV Type: IDC
Timeline
Start Date: 2023-12-15
Current End Date: 2026-12-28
Potential End Date: 2026-12-28 00:00:00
Last Modified: 2025-12-09
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