DoD Awards Boeing $203M for F/A-18 Flight Control Surfaces, Lacking Competition
Contract Overview
Contract Amount: $203,128,530 ($203.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2017-08-28
End Date: 2027-07-31
Contract Duration: 3,624 days
Daily Burn Rate: $56.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 9 F/A-18 A-F FLIGHT CONTROL SURFACE NIINS PLUS UP QUANTITIES
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $203.1 million to THE BOEING COMPANY for work described as: 9 F/A-18 A-F FLIGHT CONTROL SURFACE NIINS PLUS UP QUANTITIES Key points: 1. Significant contract value for critical aircraft components. 2. Sole reliance on Boeing raises concerns about market competition. 3. Long contract duration (2017-2027) impacts long-term value. 4. Defense Logistics Agency is the contracting entity. 5. No small business participation noted.
Value Assessment
Rating: questionable
The $203 million award for flight control surfaces appears high given the lack of competitive bidding. Benchmarking against similar contracts for F/A-18 parts is difficult without competitive data, but the sole-source nature suggests potential for inflated pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, awarded directly to The Boeing Company. This sole-source approach limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition likely results in higher costs for the Department of Defense, meaning taxpayers are potentially overpaying for these essential aircraft parts.
Public Impact
Ensures continued availability of critical F/A-18 aircraft components. Supports ongoing operations and maintenance for a key military asset. Potential for taxpayer funds to be used inefficiently due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Sole-Source Award
- No Small Business Participation
Positive Signals
- Ensures supply of critical parts
- Long-term contract provides stability
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending benchmarks for such specialized components are often influenced by proprietary technology and limited supplier bases, but competition is typically sought to ensure value.
Small Business Impact
The contract explicitly states no small business participation (sb: false). This indicates that the prime contractor, Boeing, is handling the entire scope of work, and opportunities for small businesses within the supply chain were not pursued or mandated.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is fair and reasonable. Transparency in the justification for not competing the contract is crucial for accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Potential for overpayment due to lack of market validation.
- No small business participation limits economic opportunity.
- Long contract duration increases long-term cost exposure.
- Dependence on a single supplier poses supply chain risk.
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 $203.1 million to THE BOEING COMPANY. 9 F/A-18 A-F FLIGHT CONTROL SURFACE NIINS PLUS UP QUANTITIES
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 $203.1 million.
What is the period of performance?
Start: 2017-08-28. End: 2027-07-31.
What is the justification provided by the Defense Logistics Agency for awarding this contract sole-source to Boeing, and does it align with federal procurement regulations for non-competitive awards?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require access to the specific justification documentation (e.g., J&A - Justification and Approval) filed by the DLA. Federal regulations (like FAR Part 6) allow sole-source awards under specific circumstances, such as when only one responsible source can provide the supplies or services. The validity of the award hinges on whether these circumstances genuinely applied and were properly documented.
How does the unit cost of these F/A-18 flight control surfaces compare to historical data or similar components purchased competitively?
Without competitive benchmark data or detailed cost breakdowns, a direct comparison is challenging. The total award of $203 million over approximately 10 years suggests a significant investment. The lack of competition means there's no external market validation of the price. Further analysis would require accessing historical procurement data for similar components or requesting cost transparency from the contractor.
What is the long-term strategic risk associated with relying solely on Boeing for these critical F/A-18 components, particularly concerning supply chain resilience and potential future price increases
The long-term strategic risk involves dependence on a single supplier, potentially limiting negotiation leverage and increasing vulnerability to supply chain disruptions. If Boeing faces production issues or decides to increase prices significantly in future contract modifications or renewals, the DoD has limited alternatives. This underscores the importance of proactive supply chain management and exploring potential second-source options where feasible.
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
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: $203,128,530
Exercised Options: $203,128,530
Current Obligation: $203,128,530
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $4,886,542
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRPA114D002U
IDV Type: IDC
Timeline
Start Date: 2017-08-28
Current End Date: 2027-07-31
Potential End Date: 2027-07-31 00:00:00
Last Modified: 2024-11-13
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