Boeing Awarded $79.8M for PBL Material, Raising Concerns Over Sole-Source Procurement
Contract Overview
Contract Amount: $79,818,411 ($79.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-05-17
End Date: 2025-07-18
Contract Duration: 427 days
Daily Burn Rate: $186.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8510628667!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 $79.8 million to THE BOEING COMPANY for work described as: 8510628667!PBL MATERIAL BOEING Key points: 1. Significant contract value awarded to a single large business. 2. Lack of competition raises questions about price reasonableness. 3. Potential for taxpayer overpayment due to sole-source award. 4. Defense sector spending on aircraft parts continues to be substantial.
Value Assessment
Rating: questionable
The contract value of $79.8M for PBL material is substantial. Without competitive bidding, it is difficult to assess if this price is reasonable compared to market rates for similar aircraft parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating no competition. This limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium for these aircraft parts, as competitive pressures were absent.
Public Impact
Taxpayers may be overpaying for essential aircraft parts due to lack of competition. The Department of Defense relies on a single supplier, potentially creating supply chain vulnerabilities. Oversight is needed to ensure the quality and necessity of the materials procured.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential material for defense operations
- Contract with a major aerospace manufacturer
Sector Analysis
This contract falls within the Defense sector, specifically for aircraft parts manufacturing. Spending in this area is critical for military readiness, but often involves complex supply chains and significant investment.
Small Business Impact
This contract was awarded to The Boeing Company, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste, fraud, or abuse. The Defense Logistics Agency should justify 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
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on price justification
- Reliance on a single large business
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 $79.8 million to THE BOEING COMPANY. 8510628667!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 $79.8 million.
What is the period of performance?
Start: 2024-05-17. End: 2025-07-18.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure price reasonableness?
The justification for a sole-source award typically involves unique capabilities or circumstances where only one source can fulfill the requirement. The Defense Logistics Agency should provide documentation supporting this determination. Price reasonableness is often assessed through historical pricing, comparison to similar items, or independent government cost estimates, though these are less effective without competition.
What are the potential risks associated with relying on a sole-source supplier for critical aircraft parts, particularly in terms of long-term availability and cost escalation?
Sole-source reliance creates significant risks, including vulnerability to supply chain disruptions if the sole supplier faces issues. It also removes competitive pressure, potentially leading to escalating prices over time as the government has limited leverage. This can impact long-term budget predictability and operational readiness.
How does this contract contribute to the overall effectiveness and readiness of the Department of Defense's aircraft fleet?
This contract is for 'PBL Material,' likely referring to Performance-Based Logistics material, which is crucial for maintaining aircraft readiness and operational effectiveness. Ensuring a steady supply of necessary parts through such contracts is vital for minimizing downtime and maximizing the availability of critical defense assets.
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 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: $79,818,411
Exercised Options: $79,818,411
Current Obligation: $79,818,411
Subaward Activity
Number of Subawards: 106
Total Subaward Amount: $21,302,029
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: 2024-05-17
Current End Date: 2025-07-18
Potential End Date: 2025-07-18 00:00:00
Last Modified: 2025-10-22
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)