DoD awards $31.4M for H-47 blade logistics support to Boeing, raising competition concerns
Contract Overview
Contract Amount: $31,427,632 ($31.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-09-23
End Date: 2020-09-30
Contract Duration: 373 days
Daily Burn Rate: $84.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PERFORMANCE BASED LOGISTICS SUPPORT FOR THE H-47 FORWARD AND AFT BLADES AND ASSOCIATED CONTAINERS
Place of Performance
Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078
Plain-Language Summary
Department of Defense obligated $31.4 million to THE BOEING COMPANY for work described as: PERFORMANCE BASED LOGISTICS SUPPORT FOR THE H-47 FORWARD AND AFT BLADES AND ASSOCIATED CONTAINERS Key points: 1. Significant contract value for specialized aviation component support. 2. Sole-source award to incumbent prime contractor limits competitive pricing. 3. Potential for higher costs due to lack of competitive bidding. 4. Sector focus on defense aviation manufacturing and sustainment.
Value Assessment
Rating: fair
The contract value of $31.4M for H-47 blade logistics support appears substantial. Without competitive bids, it's difficult to benchmark against similar contracts to determine optimal pricing.
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 may have limited price discovery and potentially led to a higher price than if multiple vendors had bid.
Taxpayer Impact: Taxpayer funds are utilized for this sole-source award, with the potential for reduced value due to the absence of competitive pressure.
Public Impact
Ensures continued operational readiness for the H-47 Chinook helicopter fleet. Supports critical maintenance and supply chain for essential aircraft components. Impacts the defense industrial base and reliance on prime contractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Supports critical defense asset
- Ensures operational readiness
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on sustainment and logistics for a major military aircraft. Spending benchmarks in this niche area are often influenced by proprietary technology and long-term support agreements.
Small Business Impact
The data indicates this contract was awarded to The Boeing Company, a large prime contractor. There is no explicit information provided regarding small business participation or subcontracting opportunities within this specific award.
Oversight & Accountability
The award was managed by the Defense Contract Management Agency, suggesting oversight of contract performance. However, the sole-source nature raises questions about the extent of pre-award price negotiation and justification.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Potential for inflated costs due to lack of competition.
- Reliance on a single contractor for critical support.
- Limited transparency on pricing justification.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.4 million to THE BOEING COMPANY. PERFORMANCE BASED LOGISTICS SUPPORT FOR THE H-47 FORWARD AND AFT BLADES AND ASSOCIATED CONTAINERS
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 $31.4 million.
What is the period of performance?
Start: 2019-09-23. End: 2020-09-30.
What is the justification for the sole-source award, and was a full and open competition truly not feasible?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without further documentation, it's difficult to ascertain the specific reasons. However, a thorough review should confirm that alternatives were explored and that competition was genuinely not feasible to ensure the best value for the government.
How does the awarded price compare to historical spending on similar H-47 logistics support contracts?
Comparing the $31.4M award to historical data is crucial for assessing value. If previous, similar contracts were competed and awarded at lower prices, this sole-source award may represent a less favorable financial outcome. Analysis of past performance-based logistics contracts for comparable aircraft components would be necessary to establish a benchmark.
What mechanisms are in place to ensure performance and cost control given the lack of competition?
Despite the sole-source nature, robust performance metrics and oversight are essential. The contract type (Firm Fixed Price) provides some cost certainty. However, the Defense Contract Management Agency should actively monitor performance, delivery schedules, and any potential cost escalations to mitigate risks associated with limited competitive pressure.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: ROUTE 291 & STEWART AVE, RIDLEY PARK, PA, 19078
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: $32,427,632
Exercised Options: $32,427,632
Current Obligation: $31,427,632
Subaward Activity
Number of Subawards: 137
Total Subaward Amount: $4,849,493
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ18D0111
IDV Type: IDC
Timeline
Start Date: 2019-09-23
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2025-06-17
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