Boeing awarded $12.1M for aircraft parts, a sole-source contract with a long performance period
Contract Overview
Contract Amount: $12,077,897 ($12.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-09-20
End Date: 2026-05-31
Contract Duration: 1,349 days
Daily Burn Rate: $9.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TRANSMISSION
Place of Performance
Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078
Plain-Language Summary
Department of Defense obligated $12.1 million to THE BOEING COMPANY for work described as: TRANSMISSION Key points: 1. Contract awarded to a single, large defense contractor, raising questions about competitive pricing. 2. The contract spans over three years, indicating a need for sustained supply of these parts. 3. Performance is concentrated in Pennsylvania, potentially impacting regional economic activity. 4. The fixed-price nature of the contract aims to control costs, but initial pricing needs scrutiny. 5. This award falls under the 'Other Aircraft Parts' manufacturing sector, a critical component of defense logistics.
Value Assessment
Rating: fair
The contract's value of $12.1 million for aircraft parts requires benchmarking against similar sole-source awards. Without competitive bids, it's difficult to definitively assess value for money. The long performance period suggests a strategic need, but the absence of competition may lead to less favorable pricing than if multiple vendors had vied for the contract. Further analysis of the specific parts and their market value is needed to confirm if the price is reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This typically occurs when only one vendor can provide the required goods or services, or for reasons of urgency or national security. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially resulting in higher costs for the government compared to a competed contract.
Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that typically arise from a competitive bidding environment.
Public Impact
The primary beneficiaries are the Department of the Army and potentially its aviation units requiring these specific aircraft parts. The contract ensures the continued availability of essential 'Other Aircraft Parts' for military operations. Geographic impact is concentrated in Pennsylvania, where the contractor is located and likely where the parts will be manufactured or supplied from. Workforce implications may include job retention or creation within Boeing and its supply chain in Pennsylvania.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated prices.
- Long contract duration could mask inefficiencies if not closely monitored.
- Dependence on a single supplier poses a supply chain risk.
Positive Signals
- Fixed-price contract type helps to cap costs.
- Award to a major defense contractor suggests established capability and reliability.
- Specific part designation indicates a focused and potentially critical need.
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a vital segment of the aerospace and defense industry. This sector supplies components essential for the operation and maintenance of aircraft. The market is characterized by high technical requirements, stringent quality control, and often involves specialized manufacturing processes. Comparable spending benchmarks would involve analyzing other sole-source or competitively awarded contracts for similar aircraft components within the Department of Defense.
Small Business Impact
This contract was awarded to The Boeing Company, a large prime contractor, and there is no indication of a small business set-aside. Consequently, there are no direct subcontracting opportunities for small businesses mandated by this specific award. The impact on the small business ecosystem is indirect, relying on Boeing's internal subcontracting practices, which are not detailed here.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the contract terms, including delivery schedules and quality specifications. Transparency is limited due to the sole-source nature, but contract award data is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Aircraft Parts Procurement
- Defense Logistics Support
- Aerospace Manufacturing Contracts
- Department of the Army Supply Chain
Risk Flags
- Sole-source award
- Long performance period
- Lack of competition
Tags
defense, department-of-defense, department-of-the-army, aircraft-parts, other-aircraft-parts-and-auxiliary-equipment-manufacturing, sole-source, firm-fixed-price, delivery-order, pennsylvania, large-business, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.1 million to THE BOEING COMPANY. TRANSMISSION
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 $12.1 million.
What is the period of performance?
Start: 2022-09-20. End: 2026-05-31.
What is the historical spending pattern for this specific type of aircraft part with The Boeing Company?
Analyzing historical spending data for this specific part or similar components procured from The Boeing Company by the Department of Defense would provide crucial context. Without access to detailed historical procurement records, it's challenging to establish a baseline. However, if previous awards for these parts were also sole-source and at similar price points, it might suggest a consistent, albeit potentially less cost-effective, procurement strategy. Conversely, a significant increase in price or a shift from competitive to sole-source awards would warrant deeper investigation into market dynamics, inflation, or changes in the part's specifications or availability.
How does the pricing of this contract compare to market rates for similar aircraft parts?
Benchmarking the pricing of this $12.1 million contract against market rates for comparable aircraft parts is essential for assessing value. Since this is a sole-source award, direct comparison is difficult without knowing the specific part number and its commercial equivalent. However, industry databases and market research firms can provide average pricing for various aircraft components. If the per-unit cost or overall contract value significantly exceeds established market benchmarks or prices paid by other government agencies or commercial entities for similar items, it indicates potential overpricing. The long duration of the contract also means that potential price escalations should be carefully scrutinized.
What are the specific risks associated with a sole-source award for critical aircraft parts?
Sole-source awards for critical aircraft parts carry several inherent risks. Firstly, the lack of competition can lead to higher prices for the government, as the contractor faces no pressure to offer the most competitive bid. Secondly, it creates a dependency on a single supplier, which can be problematic if that supplier experiences production issues, financial instability, or decides to discontinue the product line. This dependency can also limit the government's flexibility in adapting to new technologies or alternative solutions. Finally, without competitive oversight, there's a heightened risk of complacency regarding quality control or responsiveness to the government's needs.
What is the track record of The Boeing Company in delivering similar aircraft parts under government contracts?
The Boeing Company has a long and extensive track record of delivering aircraft and related parts to the U.S. military and other government agencies. Historically, they are a major defense contractor with significant experience in manufacturing and supply chain management for complex aerospace systems. While their overall track record is substantial, specific performance on contracts for 'Other Aircraft Parts' can vary. Assessing past performance would involve reviewing contract completion timeliness, quality metrics, and any instances of disputes or contract modifications. Given their scale, it's likely they have fulfilled numerous similar requirements, but a detailed review of past performance reports for this specific category of parts would be more informative.
How does this contract align with the Department of the Army's broader aviation readiness and sustainment goals?
This contract for $12.1 million in aircraft parts directly supports the Department of the Army's aviation readiness and sustainment goals by ensuring the availability of necessary components. The 'Other Aircraft Parts' category is broad and likely encompasses items critical for maintaining the operational status of various Army aircraft fleets, such as helicopters or fixed-wing planes. The long performance period (ending May 2026) suggests a strategic commitment to ensuring a steady supply chain for these parts, which is fundamental for long-term readiness. The sole-source nature, while potentially impacting cost, may have been deemed necessary to secure a reliable supply of specialized or proprietary components essential for specific aircraft platforms.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 100 S 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: $12,077,897
Exercised Options: $12,077,897
Current Obligation: $12,077,897
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $144,370
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ21D0031
IDV Type: IDC
Timeline
Start Date: 2022-09-20
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 12:05:00
Last Modified: 2025-09-15
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