Boeing's $23.9M Navy Aviation Support contract shows long-term engagement with a single provider

Contract Overview

Contract Amount: $23,944,964 ($23.9M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2010-06-09

End Date: 2023-09-29

Contract Duration: 4,860 days

Daily Burn Rate: $4.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NAVY AVIATION SUPPORT

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $23.9 million to THE BOEING COMPANY for work described as: NAVY AVIATION SUPPORT Key points: 1. Contract duration of over 8 years suggests sustained need for these aviation support services. 2. The firm-fixed-price structure aims to control costs, but long-term contracts can sometimes mask inefficiencies. 3. Sole-source nature raises questions about potential lack of competitive pressure on pricing and innovation. 4. Performance context is limited without specific delivery order details, but the extended period implies satisfactory past performance. 5. This contract falls within the broader Defense Logistics Agency's mission to support military readiness. 6. The absence of small business set-asides indicates a focus on large prime contractors for this specific need.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the services provided and comparable contracts. The $23.9 million total value over nearly 10 years averages to approximately $2.4 million annually, which may be reasonable for specialized aviation support. However, the lack of competition means there's no direct market comparison to assess if this represents optimal value for money. The firm-fixed-price type offers cost certainty but doesn't inherently guarantee the best price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, technology, or when urgency dictates a rapid award. The lack of competition limits the government's ability to leverage market forces to drive down prices or encourage innovative solutions from a wider pool of suppliers.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, potentially missing out on cost savings that could have been achieved through a more open procurement process.

Public Impact

The U.S. Navy benefits from continued aviation support, ensuring operational readiness of its aircraft fleets. Services likely include maintenance, repair, overhaul, or logistical support for specific aircraft or systems. The geographic impact is primarily within the operational areas of the U.S. Navy, potentially worldwide. Workforce implications may involve specialized technical personnel employed by The Boeing Company and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs over the contract's long duration.
Lack of transparency in specific service details makes it difficult to fully assess value for money.
Extended contract period without re-competition could reduce opportunities for emerging technologies or alternative solutions.

Positive Signals

Firm-fixed-price contract provides cost predictability for the government.
Long duration suggests a consistent need and potentially satisfactory performance history with the incumbent contractor.
Award to a major defense contractor like Boeing indicates access to specialized expertise and capabilities.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The market is characterized by high barriers to entry, significant R&D investment, and long-standing relationships between prime contractors and government agencies. Spending in this area is critical for maintaining military readiness and technological superiority. Comparable spending benchmarks would typically involve other large-scale sustainment and support contracts for military aviation platforms.

Small Business Impact

The contract data indicates that small business participation was not a primary consideration, as the 'sb' field is false and the contract type is sole-source. There is no explicit small business set-aside. This suggests that the prime contractor, Boeing, is expected to fulfill the majority of the requirements, with any subcontracting opportunities for small businesses being at the discretion of the prime. This may limit direct opportunities for small businesses to engage with this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Logistics Agency (DLA) and the Department of the Navy. Mechanisms likely include contract performance reviews, milestone tracking, and financial audits. Transparency is moderate, as contract awards are publicly reported, but detailed performance metrics and spending breakdowns may be less accessible. The Inspector General for the Department of Defense would have jurisdiction over any investigations into fraud, waste, or abuse.

Related Government Programs

Navy Aviation Maintenance
Aircraft Parts Manufacturing
Defense Logistics Support
Boeing Defense Contracts
Sole-Source Defense Procurements

Risk Flags

Sole-source award
Long contract duration
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.9 million to THE BOEING COMPANY. NAVY AVIATION SUPPORT

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 $23.9 million.

What is the period of performance?

Start: 2010-06-09. End: 2023-09-29.

What specific aviation support services does this contract encompass for the Navy?

The provided data indicates the contract is for 'NAVY AVIATION SUPPORT' under NAICS code '336413' (Other Aircraft Parts and Auxiliary Equipment Manufacturing). While specific service details are not itemized in the summary data, this typically includes a range of activities such as maintenance, repair, overhaul (MRO), logistics, and supply chain management for specific Navy aircraft or components. Given the long duration and sole-source nature, it likely covers critical sustainment functions that require specialized knowledge and access to proprietary data or systems held by The Boeing Company, the prime contractor.

How does the $23.9 million total obligation compare to similar Navy aviation support contracts?

Direct comparison is difficult without knowing the precise scope of services and the specific aircraft or systems supported. However, $23.9 million over nearly 10 years (4860 days) averages to roughly $2.4 million per year. This figure appears moderate for specialized aviation support, especially considering the prime contractor is Boeing, a major defense manufacturer. Larger, more comprehensive sustainment contracts for entire aircraft fleets can run into hundreds of millions or billions of dollars. This contract likely represents a specific, albeit long-term, support requirement rather than a broad fleet-wide program.

What are the primary risks associated with a sole-source contract of this duration?

The primary risks of a long-term, sole-source contract include potential cost overruns due to a lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and vendor lock-in. Taxpayers may not be receiving the best possible value if alternative solutions or more competitive pricing were available. Furthermore, if the contractor faces financial difficulties or strategic shifts, the Navy's aviation support could be jeopardized. The extended duration also means the government is committed to this specific provider for an extended period, limiting flexibility.

What is The Boeing Company's track record with the Department of Defense, particularly in aviation support?

The Boeing Company has an extensive and long-standing track record as a major defense contractor for the Department of Defense, including the U.S. Navy. They are a primary manufacturer of numerous military aircraft and provide extensive support services, including sustainment, maintenance, and upgrades, across various platforms. While specific performance details for this particular contract are not provided, Boeing's overall history involves managing large, complex defense programs. However, like many large contractors, they have also faced scrutiny regarding contract costs, performance issues, and program delays on other projects.

How has spending on Navy aviation support evolved over the past decade, and where does this contract fit?

Spending on Navy aviation support has generally remained substantial, driven by the need to maintain a high level of operational readiness across a diverse fleet of aircraft. While overall defense budgets fluctuate, sustainment and maintenance are consistently prioritized. This specific $23.9 million contract, awarded as a delivery order under a larger contract vehicle with an end date in 2023, represents a portion of that broader spending. Its long duration suggests it addresses a persistent need. Analyzing its place requires comparing it to the total Navy aviation maintenance, repair, and logistics budget, which encompasses numerous contracts for different platforms and service types.

What are the implications of this contract being 'NOT COMPETED' for the taxpayer?

When a contract is 'NOT COMPETED' (sole-source), taxpayers potentially face higher costs because the government cannot leverage the price reductions that typically result from competitive bidding. Without multiple vendors vying for the contract, the chosen contractor may have less incentive to offer the lowest possible price. This can lead to less efficient use of taxpayer funds. While sole-source awards are justified in specific circumstances (e.g., unique capabilities), they warrant careful scrutiny to ensure the price paid is fair and reasonable and that the necessity for sole-sourcing is well-documented and periodically reassessed.

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

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: $23,944,964

Exercised Options: $23,944,964

Current Obligation: $23,944,964

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0038306D004H

IDV Type: IDC

Timeline