DoD awards $46.1M to Boeing for Aircraft Manufacturing, facing limited competition
Contract Overview
Contract Amount: $46,115,832 ($46.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2011-03-08
End Date: 2017-01-31
Contract Duration: 2,156 days
Daily Burn Rate: $21.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ADVANCED PROCUREMENT
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85215
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $46.1 million to THE BOEING COMPANY for work described as: ADVANCED PROCUREMENT Key points: 1. Significant contract value awarded to a single, large vendor. 2. Limited competition raises questions about price discovery and potential overspending. 3. Long contract duration (2156 days) increases exposure to market fluctuations. 4. Sector focus on Aircraft Manufacturing, a critical defense area.
Value Assessment
Rating: questionable
The contract value of $46.1M for aircraft manufacturing is difficult to benchmark without specific details on the aircraft type and quantity. However, the lack of competitive bidding suggests potential for higher-than-market pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited source award. This significantly restricts price discovery and may lead to less favorable terms for the government compared to a fully competitive process.
Taxpayer Impact: The lack of competition likely results in a higher cost to taxpayers than if multiple vendors had vied for the contract.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Reliance on a single vendor for critical aircraft manufacturing could pose supply chain risks. The long contract duration could lock the DoD into potentially outdated technology or inflated prices.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Sole-source award
Positive Signals
- Award to established vendor (Boeing)
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a key component of the defense industry. Spending in this sector is often characterized by high R&D costs, complex supply chains, and significant government oversight due to national security implications.
Small Business Impact
The award to The Boeing Company, a large aerospace corporation, suggests minimal direct benefit to small businesses through this specific contract. Subcontracting opportunities may exist, but are not detailed here.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. However, the limited competition aspect warrants close scrutiny to ensure fair pricing and performance.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Long contract duration
- Sole-source award
- Limited transparency on justification
Tags
aircraft-manufacturing, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.1 million to THE BOEING COMPANY. ADVANCED PROCUREMENT
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $46.1 million.
What is the period of performance?
Start: 2011-03-08. End: 2017-01-31.
What specific aircraft or components were procured under this contract, and what was the justification for limiting competition?
The specific aircraft or components are not detailed in the provided data. The justification for limiting competition is also absent. Understanding these details is crucial for assessing the value and necessity of the award, as well as determining if alternative competitive strategies could have been employed.
What are the potential risks associated with a sole-source award for aircraft manufacturing over a 2156-day period?
A sole-source award over an extended period carries risks of price escalation beyond market rates, potential for vendor complacency leading to quality issues, and vulnerability to supply chain disruptions if the sole vendor faces challenges. It also limits the government's ability to leverage technological advancements from competing firms during the contract's life.
How does the firm fixed price (FFP) contract type mitigate or exacerbate the risks in this limited competition scenario?
The FFP contract type shifts cost overrun risk to the contractor, which is generally favorable for the government. However, in a limited competition scenario, the initial price might be set higher due to the lack of competitive pressure. Therefore, while FFP provides cost certainty, the baseline price itself could be inflated.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W58RGZ10R0274
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5000 EAST MCDOWELL ROAD, MESA, AZ, 85215
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $57,595,345
Exercised Options: $46,115,832
Current Obligation: $46,115,832
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $70,568
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-03-08
Current End Date: 2017-01-31
Potential End Date: 2017-01-31 00:00:00
Last Modified: 2021-06-14
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