DoD Awards Boeing $29.9M for Chinook Helicopter Blade Maintenance, Lacking Competition
Contract Overview
Contract Amount: $29,898,859 ($29.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-06-25
End Date: 2027-06-30
Contract Duration: 1,100 days
Daily Burn Rate: $27.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MAINTENANCE AND OVERHAUL OF 2 NSNS, FWD AND AFT ROTARY BLADES FOR THE CHINOOK WEAPON SYSTEM AND ASSOCIATED CDRLS.
Place of Performance
Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078
Plain-Language Summary
Department of Defense obligated $29.9 million to THE BOEING COMPANY for work described as: MAINTENANCE AND OVERHAUL OF 2 NSNS, FWD AND AFT ROTARY BLADES FOR THE CHINOOK WEAPON SYSTEM AND ASSOCIATED CDRLS. Key points: 1. Significant contract value for critical helicopter component maintenance. 2. Sole-source award to Boeing raises questions about price discovery and competition. 3. Long-term contract (2027) suggests ongoing need for Chinook blade services. 4. Focus on Defense Logistics Agency highlights specialized military procurement.
Value Assessment
Rating: questionable
The contract value of $29.9 million for maintenance and overhaul of Chinook helicopter blades appears high, especially given the lack of competitive bidding. Without a competitive process, it's difficult to benchmark pricing against similar services or assess if taxpayers are receiving the best value.
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 considered. This significantly limits price discovery and potentially leads to higher costs for the government compared to a fully competed procurement.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for essential helicopter blade maintenance, as there was no market pressure to drive down costs.
Public Impact
Ensures continued operational readiness of critical Chinook helicopters for military operations. Supports specialized manufacturing and maintenance jobs within the aerospace sector. Highlights the reliance on original equipment manufacturers for complex system upkeep.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Potential for overpayment due to lack of competitive bidding.
- Long contract duration may not reflect evolving market prices.
Positive Signals
- Ensures availability of critical helicopter components.
- Maintains operational readiness of a key military asset.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and maintenance. Spending in this area is often characterized by high technical requirements and long product lifecycles, frequently involving sole-source or limited competition due to specialized knowledge and proprietary technology.
Small Business Impact
The contract was awarded to The Boeing Company, a large aerospace manufacturer. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award, suggesting limited opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price is fair and reasonable. The Defense Contract Audit Agency (DCAA) or relevant Inspector General offices may review the cost justification and pricing structure.
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 price competition
- Potential for cost overruns
- Long-term dependency on a single supplier
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.9 million to THE BOEING COMPANY. MAINTENANCE AND OVERHAUL OF 2 NSNS, FWD AND AFT ROTARY BLADES FOR THE CHINOOK WEAPON SYSTEM AND ASSOCIATED CDRLS.
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 $29.9 million.
What is the period of performance?
Start: 2024-06-25. End: 2027-06-30.
What is the justification for the sole-source award, and has a price reasonableness analysis been conducted?
The justification for a sole-source award typically involves factors like unique capabilities, proprietary data, or urgent needs where only one source can meet requirements. A thorough price reasonableness analysis is crucial to ensure the government isn't overpaying. This analysis often involves comparing proposed prices to historical data, other similar contracts, or independent cost estimates.
What are the risks associated with relying solely on Boeing for Chinook blade maintenance over the contract's duration?
The primary risk is the potential for escalating costs without competitive pressure, leading to inefficient use of taxpayer funds. Additionally, over-reliance on a single supplier can create vulnerabilities in the supply chain and reduce flexibility if alternative solutions or improved technologies emerge. It also limits opportunities for other qualified vendors to develop expertise.
How does the cost of this maintenance contract compare to industry benchmarks for similar helicopter component overhauls?
Without competitive bidding, direct comparison to industry benchmarks is challenging. However, the lack of competition suggests this contract may be priced higher than if multiple vendors had competed. A detailed cost breakdown and comparison with publicly available data on similar, competed contracts would be necessary for a definitive assessment.
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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: ROUTE 291 & STEWART AVE, RIDLEY PARK, PA, 19078
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: $29,898,859
Exercised Options: $29,898,859
Current Obligation: $29,898,859
Subaward Activity
Number of Subawards: 62
Total Subaward Amount: $3,112,152
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRPA118D007U
IDV Type: IDC
Timeline
Start Date: 2024-06-25
Current End Date: 2027-06-30
Potential End Date: 2027-06-30 12:06:00
Last Modified: 2025-12-31
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