Boeing Awarded $23.5M for Aircraft Parts, Lacking Competition

Contract Overview

Contract Amount: $23,495,741 ($23.5M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2012-01-30

End Date: 2014-03-20

Contract Duration: 780 days

Daily Burn Rate: $30.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FLAP,WING LANDING

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $23.5 million to THE BOEING COMPANY for work described as: FLAP,WING LANDING Key points: 1. Significant contract value of $23.5 million for aircraft components. 2. Sole-source award to The Boeing Company raises competition concerns. 3. Potential risk of inflated pricing due to lack of competitive bidding. 4. Spending falls within the Defense sector, specifically aircraft manufacturing.

Value Assessment

Rating: questionable

The contract value of $23.5 million for aircraft parts is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts or alternative suppliers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.

Public Impact

Taxpayers may have overpaid for critical aircraft components due to the absence of competitive bidding. The reliance on a single supplier could create vulnerabilities in the supply chain for essential defense equipment. Lack of transparency in the procurement process hinders public trust and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Contract awarded to established manufacturer
Supports defense logistics

Sector Analysis

This contract falls under the aircraft manufacturing sector, a critical component of national defense. Spending benchmarks in this area are often high due to specialized requirements and R&D costs, but competition is key to controlling expenses.

Small Business Impact

The award to The Boeing Company, a large prime contractor, does not appear to involve small businesses directly. Opportunities for small businesses may be limited in sole-source, high-value procurements.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the justification for not competing the contract was robust and that the price negotiated was fair.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Sole-source award limits competition
Potential for inflated pricing
Lack of transparency in procurement
Limited small business participation
Dependency on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.5 million to THE BOEING COMPANY. FLAP,WING LANDING

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 $23.5 million.

What is the period of performance?

Start: 2012-01-30. End: 2014-03-20.

What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?

The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require access to the contract file to determine the specific justification, such as a critical need, lack of qualified sources, or national security concerns. Without this documentation, it's impossible to assess the validity of the sole-source determination and its impact on value for money.

How does the $23.5 million price compare to industry benchmarks for similar aircraft parts, considering the sole-source nature?

Benchmarking this $23.5 million award is challenging due to its sole-source nature. Typically, competitive bids provide a market-driven price. Without comparable contract data or detailed cost breakdowns, assessing if the price is fair requires in-depth analysis of The Boeing Company's cost structure and profit margins, which are not publicly available.

What is the long-term risk associated with relying on a single supplier for these critical aircraft components?

The long-term risk includes potential supply chain disruptions if The Boeing Company faces production issues or geopolitical challenges. It also reduces leverage for future negotiations, potentially leading to sustained higher costs. Furthermore, it limits opportunities for innovation and competition from other manufacturers who could offer alternative solutions or cost savings.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2401 E WARDLOW ROAD, LONG BEACH, CA, 90807

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,548,243

Exercised Options: $23,548,243

Current Obligation: $23,495,741

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SP040003D9408

IDV Type: IDC

Timeline