DoD Spends $21.6M on B-52 Hatches from Boeing, Lacking Competition
Contract Overview
Contract Amount: $21,567,404 ($21.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2012-09-28
End Date: 2016-02-15
Contract Duration: 1,235 days
Daily Burn Rate: $17.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: B-52 HATCHES
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67203, UNITED STATES OF AMERICA
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $21.6 million to THE BOEING COMPANY for work described as: B-52 HATCHES Key points: 1. Significant spending on a critical aircraft component. 2. Sole-source award to Boeing raises questions about price discovery. 3. Long contract duration suggests potential for cost overruns. 4. Lack of competition limits potential savings for taxpayers.
Value Assessment
Rating: questionable
The contract value of $21.6 million for B-52 hatches is difficult to assess without specific unit cost data. However, the absence of competition suggests the government may not have achieved the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source to The Boeing Company, indicating no competitive bidding process. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition on this $21.6 million contract means taxpayers may have overpaid for these critical aircraft components.
Public Impact
Impacts readiness of the B-52 bomber fleet. Potential for higher defense spending due to non-competitive award. Raises concerns about the procurement process for aircraft parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Essential component for B-52 aircraft
Sector Analysis
This contract falls under the 'Other Measuring and Controlling Device Manufacturing' sector, but specifically relates to aerospace components. Defense spending benchmarks for specialized aircraft parts can vary widely, but competitive procurement typically drives costs down.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract, suggesting missed opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the price paid was fair and reasonable, and to explore future competitive strategies.
Related Government Programs
- Other Measuring and Controlling Device Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Long contract duration may hide cost inefficiencies.
- Lack of transparency in justification for sole-source award.
- No indication of small business participation.
Tags
other-measuring-and-controlling-device-m, department-of-defense, ks, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.6 million to THE BOEING COMPANY. B-52 HATCHES
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 $21.6 million.
What is the period of performance?
Start: 2012-09-28. End: 2016-02-15.
What is the average cost per B-52 hatch under this contract, and how does it compare to industry benchmarks or previous procurements?
The provided data does not include the number of units procured, making it impossible to calculate the per-unit cost. Without this information and access to industry benchmarks or historical pricing data for similar components, a direct comparison is not feasible. Further investigation into the contract details would be required to determine the unit cost and assess its reasonableness.
What were the justifications for awarding this contract sole-source to The Boeing Company, and were alternatives explored?
The justification for a sole-source award typically involves factors like unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without the specific justification documentation for this B-52 hatch contract, it's unknown if alternatives were thoroughly explored or if the sole-source determination was fully warranted. This lack of transparency can obscure potential cost savings.
How does the $21.6 million expenditure on B-52 hatches align with the overall modernization and sustainment budget for the B-52 fleet?
Assessing the alignment requires comparing this expenditure against the total budget allocated for B-52 sustainment and modernization. If this amount represents a significant portion of the sustainment budget, it could indicate potential underfunding in other areas or an over-reliance on a single, non-competitive supplier. A comprehensive review of the B-52 program's financial health is needed for proper context.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Other Measuring and Controlling Device 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: 2401 E WARDLOW ROAD, LONG BEACH, CA, 90807
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $21,567,404
Exercised Options: $21,567,404
Current Obligation: $21,567,404
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPM40003D9408
IDV Type: IDC
Timeline
Start Date: 2012-09-28
Current End Date: 2016-02-15
Potential End Date: 2016-02-15 00:00:00
Last Modified: 2015-05-05
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