DoD Spends $152M on Aviation Spares from Boeing, Lacking Competition
Contract Overview
Contract Amount: $15,277,835 ($15.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2009-05-27
End Date: 2020-12-31
Contract Duration: 4,236 days
Daily Burn Rate: $3.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AVIATION SPARES.
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $15.3 million to THE BOEING COMPANY for work described as: AVIATION SPARES. Key points: 1. Significant spending on aviation spares highlights critical supply chain needs. 2. Sole reliance on Boeing for these spares raises concerns about market competition. 3. Long contract duration and firm fixed price suggest potential for price escalation. 4. The 'Other Aircraft Parts' sector is vital for defense readiness.
Value Assessment
Rating: questionable
The total award of $152.7M over 13 years for aviation spares is substantial. Without competitive bidding, it's difficult to assess if this represents fair market value compared to similar contracts or industry benchmarks.
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 lack of competition limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The absence of competition likely results in taxpayers paying a premium for these essential aviation spares.
Public Impact
Ensures continued availability of critical aircraft parts for military operations. Supports a major defense contractor, potentially impacting industry stability. Highlights the importance of robust supply chains for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Potential for price creep
Positive Signals
- Ensures supply of critical parts
- Supports established vendor relationship
Sector Analysis
This contract falls within the Defense sector, specifically for aircraft parts manufacturing. Spending benchmarks in this area are highly variable, depending on the specific aircraft and part complexity, but $152M over 13 years for a single vendor suggests a significant, potentially non-competitive, expenditure.
Small Business Impact
The data indicates this contract was awarded to The Boeing Company, a large prime contractor. There is no indication of small business participation in this specific award, suggesting potential missed opportunities for SMBs in the supply chain.
Oversight & Accountability
The contract's long duration and sole-source nature warrant scrutiny. Oversight should focus on ensuring fair pricing through regular reviews and exploring future competitive opportunities.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Long-term vendor dependency
- Limited transparency in cost structure
- Missed small business opportunities
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 $15.3 million to THE BOEING COMPANY. AVIATION SPARES.
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 $15.3 million.
What is the period of performance?
Start: 2009-05-27. End: 2020-12-31.
What is the justification for awarding this contract sole-source to Boeing, and were alternative sources considered?
The justification for a sole-source award is crucial for understanding the necessity of bypassing competition. Agencies typically cite reasons like unique capabilities, urgent needs, or lack of viable alternatives. Without this justification, it's difficult to assess if the government received the best possible value and if taxpayer funds were used efficiently.
How does the unit cost of these aviation spares compare to industry benchmarks or previous contracts?
Benchmarking unit costs is essential for determining fair pricing. If the unit cost is significantly higher than comparable parts or previous acquisitions, it indicates potential overspending. This analysis is hampered by the sole-source nature of the award, making direct comparisons challenging without access to Boeing's cost data or alternative quotes.
What is the long-term strategy for ensuring competitive sourcing of these aviation spares to mitigate future risks?
A long-term strategy is vital to avoid sustained sole-source reliance. This could involve market research to identify new suppliers, investing in domestic production capabilities, or breaking down the requirement into smaller, more competitive lots. Proactive planning mitigates risks associated with vendor lock-in and price inflation.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: J.S. MCDONNELL BLVD., SAINT LOUIS, MO, 63166
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,277,835
Exercised Options: $15,277,835
Current Obligation: $15,277,835
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038306D004H
IDV Type: IDC
Timeline
Start Date: 2009-05-27
Current End Date: 2020-12-31
Potential End Date: 2020-12-31 00:00:00
Last Modified: 2024-08-27
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