DoD Awards Boeing $34.7M for Aircraft Parts, Raising Concerns Over Competition
Contract Overview
Contract Amount: $34,700,000 ($34.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2012-12-28
End Date: 2016-02-28
Contract Duration: 1,157 days
Daily Burn Rate: $30.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 5 EACH 01-472-2553 AND 6 EACH 01-472-2558
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $34.7 million to THE BOEING COMPANY for work described as: 5 EACH 01-472-2553 AND 6 EACH 01-472-2558 Key points: 1. Significant award to a single large contractor, Boeing. 2. Lack of competition raises questions about price discovery. 3. Potential for taxpayer overpayment due to sole-source nature. 4. Contract spans multiple years, indicating long-term need.
Value Assessment
Rating: questionable
The total award of $34.7M for aircraft parts appears high given the lack of competitive bidding. Benchmarking against similar contracts for aircraft components is difficult without more data, but the absence of competition suggests potential for inflated pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This method limits price discovery and may not yield the best value for the government.
Taxpayer Impact: The lack of competition in this $34.7M award means taxpayers may have paid more than necessary for these aircraft parts.
Public Impact
Taxpayers may be overpaying for essential aircraft parts. Limited visibility into the justification for sole-source procurement. Potential impact on the broader aerospace parts market due to concentrated award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High dollar value
Positive Signals
- Award to established contractor
- Contract addresses critical defense needs
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for defense readiness, but competitive procurement is essential to ensure cost-effectiveness.
Small Business Impact
The award went to The Boeing Company, a large prime contractor, with no indication of small business subcontracting. This suggests a missed opportunity to support small businesses in the aerospace supply chain.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the pricing is justified and that future procurements are competed where possible.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited small business participation
- Long contract duration without competition
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.7 million to THE BOEING COMPANY. 5 EACH 01-472-2553 AND 6 EACH 01-472-2558
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $34.7 million.
What is the period of performance?
Start: 2012-12-28. End: 2016-02-28.
What was the justification for awarding this contract on a sole-source basis instead of competing it?
The provided data does not include the specific 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. Further investigation would be required to determine the exact rationale in this instance.
How does the $34.7M price compare to market rates for similar aircraft parts procured competitively?
Without access to competitive benchmark data for these specific aircraft parts, it is impossible to definitively state how the $34.7M price compares to market rates. However, the absence of competition inherently raises concerns that the price may be higher than what could have been achieved through a competitive bidding process.
What is the potential risk to national security if these parts are not procured efficiently and cost-effectively?
Inefficient and non-cost-effective procurement of critical aircraft parts can lead to budget overruns, diverting funds from other essential defense programs. Furthermore, reliance on sole-source contracts can create supply chain vulnerabilities and potentially impact the readiness and operational capability of defense assets if parts are delayed or become prohibitively expensive.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: SPRPA112QX403
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: $34,700,000
Exercised Options: $34,700,000
Current Obligation: $34,700,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPM4AX11D9414
IDV Type: IDC
Timeline
Start Date: 2012-12-28
Current End Date: 2016-02-28
Potential End Date: 2016-02-28 00:00:00
Last Modified: 2018-08-28
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