Boeing awarded $9.4M contract for PBL material, raising questions on competition and value

Contract Overview

Contract Amount: $9,415,230 ($9.4M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2025-11-17

End Date: 2026-04-20

Contract Duration: 154 days

Daily Burn Rate: $61.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 8511743714!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 $9.4 million to THE BOEING COMPANY for work described as: 8511743714!PBL MATERIAL BOEING Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Fixed-price contract type offers some cost certainty but may not fully capture value. 3. Short performance period suggests a need for immediate material supply. 4. Contractor is a major defense industrial base participant. 5. Geographic location of performance is Missouri. 6. No small business set-aside was utilized.

Value Assessment

Rating: fair

The contract value of $9.4 million for PBL material appears reasonable given the nature of defense contracting, but without competitive bidding, a definitive value-for-money assessment is challenging. Benchmarking against similar sole-source awards for specialized aircraft components would be necessary for a more precise evaluation. The firm fixed-price structure provides cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, The Boeing Company, was solicited. This approach bypasses the competitive bidding process, which typically drives down prices and encourages innovation. The lack of competition here suggests potential reliance on Boeing's unique capabilities or a specific program requirement that only they can fulfill.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no market pressure to offer the lowest possible price. This limits the government's ability to secure the best possible deal.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Logistics Agency, ensuring the availability of critical aircraft manufacturing materials. This contract supports the sustainment and readiness of military aircraft fleets. The geographic impact is concentrated in Missouri, where the performance will occur. Workforce implications include continued employment for skilled labor within Boeing's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing compared to a competitive scenario.
Sole-source awards can reduce transparency in government spending.
Dependence on a single supplier can create supply chain risks.
Limited opportunity for small businesses to participate in this specific award.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to a major defense contractor suggests a focus on established capabilities and reliability.
Contract supports critical defense logistics and readiness.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, a critical component of the broader aerospace and defense industry. The market is characterized by high barriers to entry, significant R&D investment, and a limited number of large, established players like Boeing. Spending in this sector is heavily influenced by defense budgets and geopolitical factors. Comparable spending benchmarks would involve analyzing other sole-source or limited-competition awards for specialized aircraft parts and materials.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for them mentioned in the provided data. The award to a large prime contractor like Boeing typically means that opportunities for small businesses would be through subcontracts, if Boeing chooses to engage them. The absence of a set-aside indicates a focus on the prime contractor's direct capabilities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Logistics Agency's contracting officers and potentially the Department of Defense's Inspector General. Accountability measures are inherent in the firm fixed-price contract type, which obligates Boeing to deliver specified materials at an agreed-upon price. Transparency is limited due to the sole-source nature of the award, making public scrutiny of pricing and justification more difficult.

Related Government Programs

Aircraft Parts Manufacturing
Defense Logistics Support
Propulsion Systems
Airframe Components
Military Aircraft Sustainment

Risk Flags

Sole-source award
Potential for higher costs due to lack of competition
Limited transparency in pricing justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.4 million to THE BOEING COMPANY. 8511743714!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 $9.4 million.

What is the period of performance?

Start: 2025-11-17. End: 2026-04-20.

What is the historical spending pattern with The Boeing Company for similar PBL materials by the Defense Logistics Agency?

Analyzing historical spending with The Boeing Company for similar PBL (Performance-Based Logistics) materials by the Defense Logistics Agency (DLA) is crucial for understanding value and potential cost trends. While specific data for this contract is limited, DLA frequently procures sustainment-related materials and services from major defense contractors like Boeing. Past awards for aircraft components, spare parts, and related support services can provide a benchmark. A review of historical contract databases (e.g., FPDS) would reveal the frequency, value, and nature of previous sole-source or competitively awarded contracts for similar items. Significant year-over-year increases in pricing for comparable materials, or a pattern of sole-source awards without clear justification, could indicate potential areas for concern regarding cost efficiency and market dynamics.

How does the $9.4 million award compare to market rates for similar aircraft manufacturing materials?

Benchmarking the $9.4 million award against market rates for similar aircraft manufacturing materials is challenging without detailed specifications of the 'PBL MATERIAL' and its intended use. However, given that this is a sole-source award to The Boeing Company, it is plausible that the price may be higher than what could be achieved through a competitive bidding process. Market rates in the defense aerospace sector are often influenced by proprietary technology, specialized manufacturing processes, and long-term supply agreements. To assess value, one would ideally compare this award to other DLA or DoD contracts for comparable materials, considering factors like quantity, specifications, lead times, and the supplier's overhead. If similar materials were procured competitively, the price difference could highlight potential overspending.

What are the specific risks associated with a sole-source award for critical defense materials?

Sole-source awards for critical defense materials, such as the $9.4 million contract for PBL material to Boeing, carry several inherent risks. Firstly, the lack of competition can lead to inflated prices, as the government does not benefit from the cost-saving pressures that a competitive bidding process typically generates. Secondly, it can foster complacency in the supplier, potentially leading to reduced quality or slower delivery times, as there are fewer market alternatives. Thirdly, it creates a dependency on a single supplier, which can be a significant supply chain vulnerability. If Boeing faces production issues, labor strikes, or financial difficulties, the availability of these critical materials could be jeopardized, impacting military readiness. Finally, sole-source justifications can sometimes mask inefficiencies or a lack of proactive market research by the procuring agency.

What is The Boeing Company's track record in fulfilling similar defense material contracts?

The Boeing Company has an extensive and long-standing track record in fulfilling defense material contracts for the U.S. Department of Defense, including the Defense Logistics Agency. As one of the largest aerospace and defense contractors globally, Boeing is a primary supplier for numerous military aircraft platforms and their associated sustainment needs. Their history includes delivering a wide array of components, systems, and support services critical to military operations. While generally considered reliable, like any large contractor, Boeing has faced scrutiny and challenges on specific programs related to production timelines, cost overruns, and quality control. For this specific 'PBL MATERIAL' contract, a deeper dive into Boeing's performance on recent, similar sole-source awards or contracts related to the specific aircraft platform would provide more targeted insights into their reliability and adherence to contractual obligations.

What are the potential implications of this contract on future competition for aircraft manufacturing materials?

This sole-source award to Boeing for PBL material could have implications for future competition, primarily by potentially discouraging other suppliers from entering or expanding their presence in this specific niche. When a large portion of a particular material or component market is consistently awarded to a single incumbent, it can create barriers to entry for potential competitors. These barriers might include the cost of developing specialized manufacturing capabilities, meeting stringent defense quality standards, and navigating the complex government procurement process. If Boeing is the sole provider of this specific 'PBL MATERIAL,' it reinforces their market position. Future solicitations for similar materials might default to a sole-source justification if no other viable suppliers are identified or actively cultivated by the government, thus perpetuating the cycle of limited competition.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft 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: $13,181,321

Exercised Options: $13,181,321

Current Obligation: $9,415,230

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPRPA120D005U

IDV Type: IDC

Timeline