DoD Awards $125M to Boeing for F18 Flight Control Surfaces, Lacking Competition
Contract Overview
Contract Amount: $125,380,481 ($125.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2015-04-10
End Date: 2019-11-29
Contract Duration: 1,694 days
Daily Burn Rate: $74.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 17 F18 FLIGHT CONTROL SURFACE NIINS
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $125.4 million to THE BOEING COMPANY for work described as: 17 F18 FLIGHT CONTROL SURFACE NIINS Key points: 1. Significant contract value of $125.38M for critical aircraft components. 2. Sole reliance on Boeing for these parts raises concerns about market dynamics. 3. Potential for inflated costs due to lack of competitive bidding. 4. Spending falls within the Defense sector, specifically aircraft parts manufacturing.
Value Assessment
Rating: questionable
The contract value of $125.38M for F18 flight control surfaces appears high given the lack of competition. Without benchmarks from competing bids, it's difficult to ascertain if this price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating no competitive bidding process. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition likely results in taxpayers paying a premium for these essential aircraft parts.
Public Impact
Ensures continued operational readiness for F18 aircraft by supplying critical flight control components. Supports a major defense contractor, potentially impacting jobs and the aerospace supply chain. Raises questions about the long-term strategy for sourcing specialized aircraft parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value without clear justification
Positive Signals
- Ensures supply of critical components
- Supports established defense contractor
Sector Analysis
This spending is within the Defense sector, specifically for aircraft parts. The benchmark for such specialized components can vary widely, but a sole-source award often deviates from competitive norms.
Small Business Impact
This contract does not appear to involve small businesses, as it is a sole-source award to a large prime contractor, The Boeing Company.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is justified and that future opportunities for competition are explored.
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.
- Potential for inflated pricing.
- Lack of transparency in price justification.
- Dependency on a single supplier.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, mo, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $125.4 million to THE BOEING COMPANY. 17 F18 FLIGHT CONTROL SURFACE NIINS
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 $125.4 million.
What is the period of performance?
Start: 2015-04-10. End: 2019-11-29.
What is the justification for awarding this contract solely to Boeing, and have alternatives been considered?
The data indicates a sole-source award, suggesting that either Boeing is the only capable provider or that competitive procedures were waived. A thorough review would be needed to understand the specific justification, such as proprietary technology or unique manufacturing capabilities, and to confirm that no viable alternatives were overlooked.
How does the $125M contract value compare to historical pricing for similar components, and what is the risk of cost overruns?
Without competitive bids, direct comparison is difficult. However, sole-source contracts inherently carry a higher risk of cost overruns or inflated pricing because the government lacks the leverage of competing offers. Historical data for similar, competitively procured parts would be essential for a robust assessment.
What is the long-term strategy for ensuring competitive sourcing of F18 flight control surfaces to mitigate future sole-source awards?
The current sole-source award highlights a potential gap in competitive sourcing for these critical parts. The Department of Defense should investigate options for fostering competition, such as encouraging new entrants, developing alternative designs, or ensuring robust data rights for future procurements.
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: 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: $125,380,481
Exercised Options: $125,380,481
Current Obligation: $125,380,481
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRPA114D002U
IDV Type: IDC
Timeline
Start Date: 2015-04-10
Current End Date: 2019-11-29
Potential End Date: 2019-11-29 00:00:00
Last Modified: 2017-03-23
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