Boeing Awarded $22.6M for Post-Production Aircraft Support, Lacking Competition
Contract Overview
Contract Amount: $22,594,413 ($22.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2011-12-22
End Date: 2017-12-31
Contract Duration: 2,201 days
Daily Burn Rate: $10.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: POST PRODUCTION SERVICE SUPPORT
Plain-Language Summary
Department of Defense obligated $22.6 million to THE BOEING COMPANY for work described as: POST PRODUCTION SERVICE SUPPORT Key points: 1. Significant contract value of $22.6 million for specialized aircraft support. 2. Sole-source award to Boeing raises questions about competitive pricing. 3. Long contract duration of 2201 days (approx. 6 years) warrants scrutiny. 4. Aircraft manufacturing sector often involves complex, specialized support needs.
Value Assessment
Rating: questionable
The contract value of $22.6 million for post-production support is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to potential market alternatives for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This lack of competition limits price discovery and may result in higher costs for the government.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, potentially for services that could be sourced more affordably.
Public Impact
Military readiness could be impacted if aircraft support is not cost-effective. Potential for taxpayer funds to be used inefficiently due to non-competitive award. Lack of transparency in pricing for essential defense services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Specific expertise from incumbent provider
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting aircraft manufacturing operations. Spending benchmarks in this area are highly variable due to the specialized nature of defense contracts and the limited number of qualified providers.
Small Business Impact
The data indicates no specific set-aside for small businesses. Large sole-source contracts like this often bypass opportunities for small business participation unless subcontracting is mandated.
Oversight & Accountability
The non-competitive nature of this award suggests a potential gap in oversight regarding procurement strategies. Further review is needed to understand why competition was not pursued.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Limited transparency
- Long-term dependency on a single provider
Tags
aircraft-manufacturing, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.6 million to THE BOEING COMPANY. POST PRODUCTION SERVICE 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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.6 million.
What is the period of performance?
Start: 2011-12-22. End: 2017-12-31.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without specific documentation, it's presumed that the Army determined Boeing possessed the exclusive knowledge or resources necessary for this post-production support, making competition impractical or detrimental to mission objectives.
How does the $22.6 million cost compare to similar post-production support contracts for military aircraft?
Benchmarking this $22.6 million contract is challenging without access to detailed cost breakdowns and specific service scopes of comparable contracts. However, given the sole-source nature and the absence of competitive pressure, it is reasonable to question whether this price represents the best value achievable in a competitive market. Further analysis of contract line items and performance metrics would be needed for a definitive comparison.
What is the potential risk to mission effectiveness if this sole-source contract is not managed closely?
The primary risk to mission effectiveness stems from potential complacency or reduced performance incentives inherent in sole-source arrangements. If Boeing faces no competitive pressure, there's a risk of service degradation, cost overruns, or delays impacting aircraft availability. Close oversight, performance monitoring, and clear communication channels are crucial to mitigate these risks and ensure continued operational readiness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W58RGZ10R0273
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,050,911
Exercised Options: $22,594,413
Current Obligation: $22,594,413
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-12-22
Current End Date: 2017-12-31
Potential End Date: 2017-12-31 12:12:00
Last Modified: 2025-02-28
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