DoD Spends $30M on B-52 Hatches, Awarded Sole-Source to Boeing
Contract Overview
Contract Amount: $29,864,155 ($29.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-05-12
End Date: 2024-02-23
Contract Duration: 1,382 days
Daily Burn Rate: $21.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PURCHASE OF VARIOUS HATCHES FOR THE B-52 AIRCRAFT.
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67203
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $29.9 million to THE BOEING COMPANY for work described as: PURCHASE OF VARIOUS HATCHES FOR THE B-52 AIRCRAFT. Key points: 1. Significant spending on a critical aircraft component. 2. Sole-source award to a single large contractor raises competition concerns. 3. Long contract duration suggests potential for cost overruns. 4. Limited transparency on pricing compared to market alternatives.
Value Assessment
Rating: questionable
The $30 million contract for B-52 hatches lacks clear pricing benchmarks. Without competition, it's difficult to assess if the price paid is reasonable compared to potential market alternatives or historical data for similar components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this $30 million contract likely results in a higher cost to taxpayers than if multiple vendors had been allowed to bid.
Public Impact
Ensures continued operational readiness of the B-52 bomber fleet. Supports a major defense contractor, potentially impacting jobs. Highlights reliance on legacy aircraft and their sustainment needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- No small business participation
Positive Signals
- Supports critical defense platform
- Ensures aircraft availability
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending benchmarks for specialized aircraft components can vary widely, but sole-source awards often exceed competitive pricing.
Small Business Impact
There is no indication of small business participation in this contract. The award to a single large prime contractor suggests opportunities for small businesses were either not pursued or not available.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the price paid is justified and that future procurements explore competitive options where feasible.
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 and price discovery.
- Potential for inflated pricing due to lack of competitive pressure.
- No small business participation noted.
- Long contract duration increases risk of cost overruns.
- Lack of transparency on pricing justification.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ks, 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. PURCHASE OF VARIOUS HATCHES FOR THE B-52 AIRCRAFT.
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: 2020-05-12. End: 2024-02-23.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without specific details, it's unclear if the Defense Logistics Agency thoroughly explored competitive options or if there were genuine constraints preventing a broader solicitation for these B-52 hatches.
How does the unit cost of these hatches compare to similar components for other legacy aircraft?
A direct comparison of unit costs is challenging without knowing the specific technical requirements and complexity of these B-52 hatches. However, given the sole-source nature and the long duration, the unit cost may be higher than if competitive bids had been solicited, potentially reflecting a premium for guaranteed supply from a single source.
What is the long-term strategy for B-52 sustainment, and could this lead to future sole-source procurements?
The long-term strategy for B-52 sustainment is crucial for understanding the implications of this contract. If the B-52 fleet is slated for continued service, future sustainment needs for components like hatches may arise. Proactive market research and fostering competition among potential suppliers could mitigate the need for future sole-source awards and ensure better value.
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
Solicitation ID: SPRTA119R0171
Offers Received: 1
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: $29,864,155
Exercised Options: $29,864,155
Current Obligation: $29,864,155
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $899,766
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4A119G0013
IDV Type: BOA
Timeline
Start Date: 2020-05-12
Current End Date: 2024-02-23
Potential End Date: 2024-02-23 00:00:00
Last Modified: 2024-02-23
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)