Boeing Awarded $30.4M for Inner Wing Sections by DoD, Sole-Sourced
Contract Overview
Contract Amount: $30,360,653 ($30.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2012-02-21
End Date: 2014-09-30
Contract Duration: 952 days
Daily Burn Rate: $31.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: WING SECTION,INNER
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $30.4 million to THE BOEING COMPANY for work described as: WING SECTION,INNER Key points: 1. Significant contract value for aircraft components. 2. Sole-source award raises questions about competition. 3. Potential risk in single supplier reliance. 4. Defense sector spending on aircraft manufacturing.
Value Assessment
Rating: fair
The contract value of $30.4 million for inner wing sections is substantial. Benchmarking against similar contracts is difficult without more data on the specific components and their complexity. The firm fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if multiple vendors had bid on the contract.
Public Impact
Taxpayers may be paying more due to the absence of competitive bidding. Reliance on a single supplier (Boeing) could create vulnerabilities in the supply chain. The DoD's procurement process for this critical component warrants scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Firm fixed-price contract
- Clear delivery order
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing. Spending in this area is critical for national security and often involves complex, high-value components.
Small Business Impact
This contract was awarded to The Boeing Company, a large aerospace manufacturer. There is no indication that small businesses were involved in this specific award, either as prime contractors or significant subcontractors.
Oversight & Accountability
The sole-source nature of this award suggests a potential gap in oversight regarding competitive procurement practices. Further review is needed to understand why this was not competed.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Supply chain dependency
- Limited small business participation
Tags
aircraft-manufacturing, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.4 million to THE BOEING COMPANY. WING SECTION,INNER
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 $30.4 million.
What is the period of performance?
Start: 2012-02-21. End: 2014-09-30.
What is the justification for the sole-source award of this significant contract for inner wing sections?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of viable alternatives. Without specific documentation from the Department of Defense, it is difficult to ascertain the precise reasons. However, such awards often raise concerns about whether a competitive process was truly impossible or if it was simply deemed less efficient in this instance.
How does the pricing of this sole-source contract compare to potential prices under a competitive bidding scenario?
It is inherently difficult to definitively compare pricing without a competitive benchmark. Sole-source contracts often carry a risk of being priced higher than they would be in a competitive environment, as the awarded vendor faces less pressure to offer the lowest possible price. The government relies on negotiation and cost analysis to mitigate this, but the absence of competing bids limits direct price discovery.
What is the long-term risk associated with relying solely on Boeing for these critical inner wing sections?
The primary long-term risk is supply chain vulnerability. If Boeing faces production issues, labor disputes, or other disruptions, it could significantly impact the availability of these essential aircraft components for the Department of Defense. This reliance also limits the government's ability to foster competition and innovation among other potential suppliers in the future.
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: $30,360,653
Exercised Options: $30,360,653
Current Obligation: $30,360,653
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SP040003D9408
IDV Type: IDC
Timeline
Start Date: 2012-02-21
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2018-08-03
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