DoD awards $31.4M for H-47 blade logistics, with Boeing as sole source
Contract Overview
Contract Amount: $31,427,632 ($31.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-10-01
End Date: 2021-09-30
Contract Duration: 364 days
Daily Burn Rate: $86.3K/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 Boeing raises questions about competition and pricing. 3. Potential risk associated with single-vendor reliance for critical parts. 4. Spending falls within the Defense sector, specifically aircraft parts manufacturing.
Value Assessment
Rating: questionable
The contract value of $31.4M for a one-year period is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives for similar logistics support.
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 limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this significant contract could lead to inflated prices, impacting taxpayer funds negatively.
Public Impact
Ensures continued operational readiness for the H-47 Chinook helicopter fleet. Supports critical maintenance and supply chain for essential aircraft components. Potential for increased costs due to the absence of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Ensures critical supply chain for H-47 blades
- Supports military readiness
Sector Analysis
This contract falls under the Defense sector, specifically supporting aviation components. Spending benchmarks for similar sole-source logistics contracts for major aircraft platforms can vary widely, but this value is significant for a single component support.
Small Business Impact
The contract data indicates that small business participation was not a factor in this award, as it was awarded directly to The Boeing Company. There is no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
Oversight is provided by the Defense Contract Management Agency. However, the sole-source nature of the award limits the agency's ability to ensure competitive pricing, focusing oversight on performance and delivery.
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 price competition.
- Potential for inflated costs.
- Reliance on a single supplier for critical components.
- Lack of transparency in 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: 2020-10-01. End: 2021-09-30.
What is the justification for the sole-source award to Boeing for H-47 blade logistics support?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or urgent and compelling needs where only one source can reasonably fulfill the requirement. Without further documentation, it's unclear if these criteria were met, necessitating a review of the contract's justification.
What is the potential cost impact of this sole-source award compared to a competitive process?
Sole-source contracts often result in higher costs due to the absence of competitive pressure. While specific benchmarks are unavailable without comparative data, it's reasonable to assume that a competitive bidding process could have yielded a lower price for the H-47 blade logistics support, potentially saving taxpayer dollars.
How will the performance of Boeing be monitored to ensure value for money despite the lack of competition?
The Defense Contract Management Agency will monitor Boeing's performance to ensure adherence to contract terms, delivery schedules, and quality standards. While competition is absent, robust performance monitoring can help mitigate risks and ensure the government receives the services it paid for, though it cannot guarantee the most cost-effective outcome.
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
Actual Outlays: $30,927,632
Subaward Activity
Number of Subawards: 114
Total Subaward Amount: $4,091,056
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: 2020-10-01
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2025-06-17
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