DoD Awards Boeing $36.8M for PBL Material, Raising Concerns Over Sole-Source Procurement
Contract Overview
Contract Amount: $36,822,642 ($36.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-04-07
End Date: 2026-06-09
Contract Duration: 428 days
Daily Burn Rate: $86.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 8511296190!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 $36.8 million to THE BOEING COMPANY for work described as: 8511296190!PBL MATERIAL BOEING Key points: 1. Significant contract value awarded to a single large corporation. 2. Lack of competition raises questions about price reasonableness. 3. Potential for taxpayer overpayment due to sole-source award. 4. Focus on aircraft parts manufacturing within the defense sector.
Value Assessment
Rating: questionable
The contract value of $36.8M 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 significantly limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The lack of competition in this sole-source award could result in taxpayers paying more than necessary for these aircraft parts.
Public Impact
Taxpayers may be overpaying for essential aircraft components. Lack of transparency in the procurement process. Potential impact on the readiness of military aircraft due to component costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
Positive Signals
- Award to established defense contractor
- Supports critical defense logistics
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the defense industrial base. Spending in this area is often substantial, but competitive bidding is crucial for cost efficiency.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication that small businesses were involved in this specific procurement, suggesting a missed opportunity for their participation.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the government is receiving fair value. Accountability for the pricing and justification for the lack of competition should be scrutinized.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in procurement.
- Missed opportunity for small business participation.
- Dependency on a single supplier.
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 $36.8 million to THE BOEING COMPANY. 8511296190!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 $36.8 million.
What is the period of performance?
Start: 2025-04-07. End: 2026-06-09.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or circumstances where only one source can fulfill the requirement. However, without detailed documentation, it's difficult to ascertain the specific reasons. Agencies should provide robust justifications and conduct price analyses, even in sole-source situations, to protect taxpayer interests and ensure the best possible value is obtained.
What are the risks associated with relying on a single supplier for critical aircraft parts, especially in a sole-source scenario?
Relying on a single supplier, particularly through a sole-source contract, presents significant risks. These include potential price gouging, lack of innovation, supply chain disruptions if the sole provider faces issues, and reduced leverage for the government in negotiations. This dependency can also impact long-term program costs and operational readiness if parts become unavailable or excessively expensive.
How does this sole-source award impact the overall cost-effectiveness of the Department of Defense's aircraft parts procurement strategy?
Sole-source awards generally reduce cost-effectiveness compared to competitive procurements. By bypassing competition, the government loses the benefit of multiple bidders driving down prices and offering innovative solutions. This specific $36.8M award, if not rigorously justified and priced, contributes to a less cost-efficient overall strategy, potentially diverting funds that could be used for other critical defense needs.
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: $36,822,642
Exercised Options: $36,822,642
Current Obligation: $36,822,642
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $1,821,450
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: 2025-04-07
Current End Date: 2026-06-09
Potential End Date: 2026-06-09 00:00:00
Last Modified: 2025-06-25
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