DoD Awards Boeing $13.4M for Post-Production Support Services, Lacking Competition
Contract Overview
Contract Amount: $13,400,081 ($13.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2009-03-06
End Date: 2011-12-31
Contract Duration: 1,030 days
Daily Burn Rate: $13.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: POST PRODUCTION SUPPORT SERVICES
Plain-Language Summary
Department of Defense obligated $13.4 million to THE BOEING COMPANY for work described as: POST PRODUCTION SUPPORT SERVICES Key points: 1. Significant contract value awarded to a single large business. 2. Lack of competition raises concerns about potential overpricing. 3. Long contract duration (1030 days) may limit flexibility. 4. Services support air transportation, a critical defense sector.
Value Assessment
Rating: questionable
The contract value of $13.4M for post-production support services is difficult to benchmark without specific per-unit cost data. However, the absence of competition suggests potential for inflated pricing compared to a competitive environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under a limited competition, specifically 'NOT AVAILABLE FOR COMPETITION'. This significantly restricts price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competitive bidding likely results in a higher cost to taxpayers than if the contract had been fully and openly competed.
Public Impact
Taxpayers may be paying more than necessary due to the absence of competition. The long-term nature of the contract could lock the government into a potentially suboptimal pricing arrangement. Dependence on a single contractor for critical support services can pose a risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Awarded to a known large business with relevant experience
Sector Analysis
This contract falls within the 'Other Support Activities for Air Transportation' sector, which is crucial for military operations. Spending in this area can be substantial, and competitive sourcing is vital for cost efficiency.
Small Business Impact
The contract was awarded to The Boeing Company, a large business. There is no indication that small businesses were involved as subcontractors or that this contract was set aside for small business participation.
Oversight & Accountability
The limited competition aspect warrants further oversight to ensure the government received fair value. Accountability for the pricing and performance of this sole-source-like award is crucial.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Potential for cost overruns
- Lack of transparency in pricing
- Contractor lock-in
Tags
other-support-activities-for-air-transpo, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.4 million to THE BOEING COMPANY. POST PRODUCTION SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $13.4 million.
What is the period of performance?
Start: 2009-03-06. End: 2011-12-31.
What was the justification for limiting competition on this significant contract?
The provided data states 'NOT AVAILABLE FOR COMPETITION', which typically implies a specific justification was documented, such as a sole-source requirement due to unique capabilities or urgent need. However, without access to the full contract file, the precise rationale remains unclear. Further investigation would be needed to understand the specific circumstances that led to this procurement approach.
How does the pricing compare to similar support services contracts awarded competitively?
Direct comparison is challenging without specific per-unit cost data and detailed service scopes. However, contracts awarded under limited or sole-source conditions generally exhibit higher prices than those secured through full and open competition. A detailed cost analysis or benchmarking against similar, competitively awarded contracts would be necessary to quantify the price difference.
What are the risks associated with relying on a single contractor for this duration?
The primary risks include potential price escalation over the contract's life, reduced incentive for the contractor to innovate or improve service quality, and a lack of flexibility if government needs change. Furthermore, if the contractor faces performance issues or financial instability, it could significantly disrupt critical air transportation support operations.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W58RGZ08R0702
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5000 E MCDOWELL RD, MESA, AZ, 85215
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,400,081
Exercised Options: $13,400,081
Current Obligation: $13,400,081
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-03-06
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2025-04-21
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