Boeing Awarded $32.2M for KUWAIT PPSS/PBL, a Non-Competed Aircraft Manufacturing Contract
Contract Overview
Contract Amount: $32,219,548 ($32.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2016-12-23
End Date: 2021-12-31
Contract Duration: 1,834 days
Daily Burn Rate: $17.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: KUWAIT PPSS/PBL
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85215
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $32.2 million to THE BOEING COMPANY for work described as: KUWAIT PPSS/PBL Key points: 1. Significant contract value of $32.2 million awarded to a single, large vendor. 2. Aircraft manufacturing sector sees substantial government spending. 3. Lack of competition raises concerns about potential overpricing and limited innovation. 4. Contract duration of over 1800 days suggests long-term reliance on this vendor.
Value Assessment
Rating: questionable
The contract's firm fixed price structure aims for cost certainty. However, without competition, it's difficult to benchmark pricing against market alternatives or assess if the government secured the best possible value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer competitive pricing.
Taxpayer Impact: The absence of competition likely results in a higher cost to taxpayers than a competitively awarded contract would have achieved.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The long-term nature of the contract could lock the government into specific technologies or vendors. Limited visibility into the specific services or goods provided under 'KUWAIT PPSS/PBL'.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
- Potential for inflated pricing
Positive Signals
- Firm fixed price contract type
- Awarded by Department of Defense
Sector Analysis
This contract falls within the aircraft manufacturing sector, a critical area for defense spending. Benchmarks for similar sole-source aircraft component or sustainment contracts are often difficult to establish due to unique specifications and limited market availability.
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 partners in this specific award.
Oversight & Accountability
The Department of Defense awarded this contract. Oversight would focus on contract performance and adherence to the firm fixed price, but the lack of competition limits oversight effectiveness regarding value for money.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on specific deliverables
- Long contract duration may reduce flexibility
- Sole-source award to a large business
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 $32.2 million to THE BOEING COMPANY. KUWAIT PPSS/PBL
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 $32.2 million.
What is the period of performance?
Start: 2016-12-23. End: 2021-12-31.
What specific defense capabilities or sustainment activities does 'KUWAIT PPSS/PBL' encompass, and why was competition deemed impractical?
The specific nature of 'KUWAIT PPSS/PBL' is not detailed in the provided data. Typically, sole-source awards in defense, especially for aircraft sustainment or specialized systems, are justified by unique technical requirements, proprietary technology, or the need for continuity with existing platforms. A thorough review would be needed to validate the necessity of a non-competed approach and ensure it truly serves the best interests of national security and taxpayer value.
How does the $32.2 million cost compare to similar sole-source sustainment contracts for international defense partners?
Direct comparison is challenging without detailed specifications of the services or parts provided. However, the $32.2 million figure over approximately five years suggests a significant annual expenditure. Benchmarking would require access to classified or proprietary data on similar international sustainment contracts, which is not publicly available. The lack of competition inherently makes a definitive value assessment difficult.
What mechanisms are in place to ensure effective performance and prevent cost overruns on this long-term, sole-source contract?
The firm fixed price (FFP) contract type provides a ceiling for costs. The Defense Contract Management Agency (DCMA) is responsible for oversight, ensuring performance aligns with contract terms. However, with a sole-source award, the primary risk mitigation for cost overruns shifts from competitive pressure to robust contract administration and performance monitoring by the government.
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
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: $47,083,239
Exercised Options: $32,219,548
Current Obligation: $32,219,548
Subaward Activity
Number of Subawards: 30
Total Subaward Amount: $3,476,300
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-12-23
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2024-12-03
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