DoD awards $30.3M for new aircraft parts, with Boeing as sole source
Contract Overview
Contract Amount: $30,322,386 ($30.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-10-22
End Date: 2024-09-30
Contract Duration: 1,439 days
Daily Burn Rate: $21.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NEW SPARES
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85215
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $30.3 million to THE BOEING COMPANY for work described as: NEW SPARES Key points: 1. Significant award for aircraft parts, indicating ongoing defense needs. 2. Sole-source award to Boeing raises questions about competition and potential cost savings. 3. Long contract duration (nearly 4 years) suggests a sustained requirement. 4. Focus on 'Other Aircraft Parts' indicates a broad category of support.
Value Assessment
Rating: questionable
The $30.3M award for new spares lacks a clear benchmark for comparison due to its sole-source nature. Without competitive bids, it's difficult to assess if the pricing is optimal or if taxpayers are receiving the best value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, awarded directly to The Boeing Company. This limits price discovery and potentially leads to higher costs compared to a competitive environment.
Taxpayer Impact: The lack of competition for this substantial contract may result in higher taxpayer costs than if multiple vendors had the opportunity to bid.
Public Impact
Ensures availability of critical aircraft spare parts for military operations. Supports the operational readiness of defense aircraft fleets. Potential for increased costs due to sole-source award impacts overall defense budget.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of price benchmark for value assessment.
- Long contract duration could mask inefficiencies.
Positive Signals
- Ensures supply of critical parts.
- Supports defense readiness.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this area is crucial for maintaining military hardware, but competitive sourcing is key to cost efficiency.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within this sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the justification for non-competition is sound and that pricing is fair and reasonable.
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 inflated pricing
- Limited transparency on value for money
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.3 million to THE BOEING COMPANY. NEW SPARES
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 $30.3 million.
What is the period of performance?
Start: 2020-10-22. End: 2024-09-30.
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, proprietary technology, or urgent needs where only one source can fulfill the requirement. Agencies must still conduct market research and negotiate pricing to ensure it is fair and reasonable, often using historical data or cost analysis.
How does the unit cost of these new spares compare to similar parts procured competitively in the past?
Without competitive bids for this specific contract, a direct comparison of unit costs is challenging. Analysis would require benchmarking against historically procured similar parts, considering inflation, quantity variations, and any unique specifications of these 'new' spares to assess cost-effectiveness.
What is the potential impact on long-term defense readiness if sole-source contracts become the norm for essential spare parts?
A trend towards sole-source contracts for essential parts could stifle innovation and competition within the defense industrial base, potentially leading to higher costs and reduced agility in meeting future needs. It may also create dependencies on specific manufacturers, posing risks to supply chain resilience.
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
Solicitation ID: SPRRA119R0095
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5000 EAST MCDOWELL ROAD, MESA, AZ, 85215
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: $30,322,386
Exercised Options: $30,322,386
Current Obligation: $30,322,386
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $13,397,818
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-10-22
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 12:09:00
Last Modified: 2023-11-27
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