Boeing awarded $15.1M for flap and landing gear parts, with no competition

Contract Overview

Contract Amount: $15,147,153 ($15.1M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2009-09-30

End Date: 2014-09-30

Contract Duration: 1,826 days

Daily Burn Rate: $8.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FLAP,WING LANDING LEFT HAND

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $15.1 million to THE BOEING COMPANY for work described as: FLAP,WING LANDING LEFT HAND Key points: 1. Contract awarded on a sole-source basis, raising questions about price competitiveness. 2. Long contract duration of 5 years suggests a need for sustained supply. 3. The contract is for aircraft parts, indicating a role in maintaining existing fleets. 4. Awarded by the Defense Logistics Agency, highlighting its importance for military readiness. 5. The fixed-price contract type aims to control costs for the government. 6. No small business set-aside was applied, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: questionable

The contract value of $15.1 million for aircraft parts over five years is difficult to benchmark without specific part details and market rates. However, the lack of competition is a significant concern, as it removes the primary mechanism for ensuring competitive pricing. Without comparative bids, it's challenging to ascertain if the government received the best possible value for its investment. The fixed-price nature of the contract offers some cost certainty, but the absence of competitive pressure could lead to inflated prices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, The Boeing Company, was solicited. This typically occurs when a unique capability or proprietary product is required, or when there is insufficient time to conduct a competitive procurement. The lack of competition means there were no other bidders to compare against, limiting the government's ability to negotiate the best possible price and terms.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding processes.

Public Impact

The primary beneficiaries are the Department of Defense, which receives essential aircraft parts for its operational readiness. Services delivered include the supply of flap and left-hand landing gear components for aircraft. The geographic impact is likely centered around military bases and maintenance facilities where these aircraft are operated and serviced. Workforce implications may include specialized manufacturing and logistics roles within The Boeing Company and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices.
Sole-source award limits opportunities for other suppliers.
Long-term contract without competitive re-evaluation could reduce future value.

Positive Signals

Fixed-price contract provides cost certainty.
Award to a major manufacturer ensures established supply chain.
Contract supports critical defense logistics needs.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for specialized aircraft components is often dominated by original equipment manufacturers like Boeing due to proprietary designs and complex supply chains. Comparable spending benchmarks are difficult to establish without knowing the exact parts, but the overall defense aerospace market is substantial, with significant government investment in maintaining its fleet.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. As a sole-source award to a large prime contractor, it bypasses the typical mechanisms designed to ensure small business participation in federal contracting. This means opportunities for small businesses to supply these specific parts or contribute to this contract are likely limited unless they are part of Boeing's existing supply chain.

Oversight & Accountability

The provided data does not detail specific oversight mechanisms for this contract. However, standard government contracting oversight would typically involve contract administration by the Defense Contract Management Agency (DCMA) and potential review by the Inspector General's office, particularly given the sole-source nature. Transparency is limited by the lack of competitive bidding information.

Related Government Programs

Aircraft Maintenance and Repair
Defense Logistics Support
Aerospace Component Manufacturing
Military Aircraft Parts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for overpayment due to lack of competition.
Dependency on a single supplier for critical parts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.1 million to THE BOEING COMPANY. FLAP,WING LANDING LEFT HAND

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 $15.1 million.

What is the period of performance?

Start: 2009-09-30. End: 2014-09-30.

What is the specific nature of the 'FLAP, WING LANDING LEFT HAND' components being procured, and what aircraft models do they support?

The provided data identifies the items as 'FLAP, WING LANDING LEFT HAND' and classifies the product under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing.' Without further details or access to the contract's statement of work, the precise specifications and the specific aircraft models these components are intended for remain unknown. This information is crucial for understanding the criticality of the parts, potential alternatives, and the justification for a sole-source award. Typically, such components are vital flight control surfaces or structural elements related to the landing gear system, requiring precise engineering and adherence to strict aerospace standards. Knowing the aircraft type would allow for benchmarking against similar parts for other military platforms.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The justification for a sole-source award, as indicated by 'CT: NOT COMPETED', typically stems from specific circumstances outlined in federal acquisition regulations. Common reasons include the proprietary nature of the product or technology, the existence of only one responsible source, or urgent and compelling circumstances that preclude full and open competition. For aircraft parts, it often relates to components designed and manufactured exclusively by the original equipment manufacturer (OEM), like Boeing, for specific aircraft platforms. Without the specific justification document (e.g., a Justification and Approval - J&A), it's impossible to definitively state the reason. However, the lack of competition inherently raises concerns about whether the government explored all viable options to secure the best value.

How does the $15.1 million contract value compare to historical spending on similar aircraft parts by the Defense Logistics Agency?

Comparing the $15.1 million contract value for 'FLAP, WING LANDING LEFT HAND' parts requires access to historical spending data for identical or highly similar components procured by the Defense Logistics Agency (DLA) or other Department of Defense entities. The provided data does not include this historical context. Generally, the DLA procures a vast array of parts, and the significance of this $15.1 million award depends heavily on the volume, criticality, and unit cost of the specific parts. A sole-source award, as in this case, makes direct historical price comparisons more challenging, as competitive bids would normally provide a benchmark. Analyzing past solicitations and awards for comparable parts, if available, would be necessary to assess value trends.

What are the potential risks associated with a sole-source contract for critical aircraft components?

Sole-source contracts for critical aircraft components carry several risks. Firstly, the absence of competition can lead to inflated pricing, as the contractor faces less pressure to offer competitive rates. Secondly, it can reduce innovation and responsiveness, as the sole provider may have less incentive to improve products or services. Thirdly, it creates a dependency on a single supplier, making the government vulnerable to supply chain disruptions, price hikes, or the contractor's business decisions. For critical components like flaps and landing gear, any disruption could impact aircraft availability and mission readiness. Robust contract management, including thorough cost analysis and performance monitoring, is essential to mitigate these risks.

What is The Boeing Company's track record in fulfilling similar sole-source contracts for the Department of Defense?

The Boeing Company is a major defense contractor with extensive experience fulfilling contracts for the Department of Defense, including sole-source awards. Their track record generally involves supplying complex systems and components for various military aircraft platforms. While specific data on their performance for similar sole-source parts contracts isn't provided here, Boeing has a long history of delivering products to the DoD. However, the nature of sole-source awards means that performance metrics and pricing are often less transparent than in competitive scenarios. Evaluating their overall track record would involve reviewing past performance evaluations, delivery histories, and any documented issues or successes on comparable contracts.

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: 6200 J S MCDONNELL BLVD, SAINT LOUIS, MO, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,147,153

Exercised Options: $15,147,153

Current Obligation: $15,147,153

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPM4A109G0004

IDV Type: IDC

Timeline