Boeing Awarded $72M for Naval Aviation Parts, Lacking Competition
Contract Overview
Contract Amount: $71,985,122 ($72.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2008-12-01
End Date: 2011-12-31
Contract Duration: 1,125 days
Daily Burn Rate: $64.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NAVAL AVIATION.
Place of Performance
Location: SAINT LOUIS, ST. LOUIS (CITY) County, MISSOURI, 63166
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $72.0 million to THE BOEING COMPANY for work described as: NAVAL AVIATION. Key points: 1. Significant contract value of $72M awarded to a single large business. 2. Lack of competition raises concerns about potential overpricing and value. 3. Contract duration of 3 years suggests a need for ongoing supply. 4. The sector is critical for national defense, implying high stakes for performance.
Value Assessment
Rating: questionable
The contract value of $72M for aircraft parts is substantial. Without competitive bidding, it's difficult to assess if the price reflects fair market value. Benchmarking against similar sole-source contracts or industry standards would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may lead to higher costs for the government compared to a competitive process. The rationale for sole-sourcing is not provided.
Taxpayer Impact: The absence of competition likely results in a higher cost to taxpayers than if the contract had been awarded through a competitive bidding process.
Public Impact
Taxpayers may be paying a premium for essential naval aviation components due to the lack of competition. The sole-source nature of this award could set a precedent for future sole-source procurements in this category. Ensuring the quality and timely delivery of these critical parts is paramount for naval readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award
Positive Signals
- Award to established contractor
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the Defense sector, specifically for aircraft parts. Spending in this area is critical for maintaining military readiness. Benchmarks for sole-source aircraft parts contracts are difficult to establish without more data, but competition is generally preferred to ensure value.
Small Business Impact
The contract was awarded to The Boeing Company, a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The lack of competition suggests potential weaknesses in the oversight process that allowed for a sole-source award. Further review would be needed to understand the justification and ensure accountability for the pricing and performance.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated pricing due to lack of bids.
- No small business participation evident.
- Contract duration may mask underlying inefficiencies.
- Limited transparency on justification for sole-sourcing.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, mo, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.0 million to THE BOEING COMPANY. NAVAL AVIATION.
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 $72.0 million.
What is the period of performance?
Start: 2008-12-01. End: 2011-12-31.
What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?
The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. A thorough review of the contract file would be necessary to ascertain the specific rationale and its validity.
How does the awarded price compare to industry benchmarks for similar aircraft parts, considering the lack of competition?
Without competitive bids, it is challenging to establish a precise benchmark. However, sole-source contracts often carry a price premium. The reported value of $72M should be compared against historical data for similar parts procured competitively, or against independent cost estimates, to identify potential overpricing.
What mechanisms are in place to ensure the quality and timely delivery of these critical naval aviation parts under a sole-source arrangement?
While the contract type is Firm Fixed Price, which shifts some risk to the contractor, robust government oversight is still crucial. This includes quality assurance surveillance plans, performance monitoring, and clear communication channels to ensure parts meet specifications and are delivered on schedule to support naval operations.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: J S MCDONNELL BLVD, SAINT LOUIS, MO, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $71,985,122
Exercised Options: $71,985,122
Current Obligation: $71,985,122
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0038306D001J
IDV Type: IDC
Timeline
Start Date: 2008-12-01
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2013-03-15
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