Boeing Awarded $23M for Saudi MNG Post-Production Support, No Competition
Contract Overview
Contract Amount: $22,988,025 ($23.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-11-28
End Date: 2026-11-27
Contract Duration: 1,095 days
Daily Burn Rate: $21.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: POST PRODUCTION SUPPORT SERVICES (PPSS) IN SUPPORT OF SAUDI ARABIA MINISTRY OF NATIONAL GUARD (MNG)
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85215
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $23.0 million to THE BOEING COMPANY for work described as: POST PRODUCTION SUPPORT SERVICES (PPSS) IN SUPPORT OF SAUDI ARABIA MINISTRY OF NATIONAL GUARD (MNG) Key points: 1. Boeing secured a $23M contract for post-production support services for Saudi Arabia's Ministry of National Guard. 2. The contract was awarded on a sole-source basis, raising questions about price discovery and competition. 3. The duration of the contract is three years, with a firm-fixed-price structure. 4. This spending falls under the Department of Defense's support activities for air transportation.
Value Assessment
Rating: questionable
The contract value of $23M for three years of support is difficult to benchmark without specific service details. The lack of competition prevents a direct comparison to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may not ensure the best value for taxpayer dollars.
Taxpayer Impact: The absence of competition could lead to higher costs for taxpayers compared to a competitively bid contract.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The contract supports a foreign military sale, impacting international relations and defense cooperation. The long-term nature of the support contract raises questions about ongoing financial commitments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Foreign military sales support
Positive Signals
- Supports critical foreign military needs
- Long-term support agreement
Sector Analysis
This contract falls under 'Other Support Activities for Air Transportation' within the defense sector. Spending in this area often involves specialized services for complex aviation systems, and benchmarks can vary widely based on the specific support required.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight will be crucial to ensure the services provided meet the agreed-upon standards and that costs remain reasonable despite the sole-source nature.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Limited transparency into service details and pricing justification.
- Potential for cost overruns if not closely monitored.
- Reliance on a single contractor for critical support.
Tags
other-support-activities-for-air-transpo, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.0 million to THE BOEING COMPANY. POST PRODUCTION SUPPORT SERVICES (PPSS) IN SUPPORT OF SAUDI ARABIA MINISTRY OF NATIONAL GUARD (MNG)
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 $23.0 million.
What is the period of performance?
Start: 2023-11-28. End: 2026-11-27.
What specific post-production support services are being provided under this contract, and how do they align with the needs of the Saudi MNG?
The contract specifies 'Post Production Support Services (PPSS)' for the Saudi Arabian Ministry of National Guard (MNG). While the exact nature of these services is not detailed, they likely encompass maintenance, repair, logistics, and technical assistance related to aviation assets or systems operated by the MNG. The alignment with MNG needs would be based on prior agreements and requirements established between the US Department of Defense and the Saudi government.
Given the sole-source nature, what mechanisms are in place to ensure fair and reasonable pricing for these services?
In sole-source procurements, agencies typically rely on cost analysis, price reasonableness studies, and negotiation with the contractor to ensure fair and reasonable pricing. This may involve reviewing the contractor's cost proposals, historical pricing data, and market research. However, without competition, the agency's ability to verify the most cost-effective solution is inherently limited.
What is the long-term strategic value of this contract for US foreign policy and defense industrial base?
This contract supports a key US ally, Saudi Arabia, by ensuring the operational readiness of their military assets, which aligns with US foreign policy objectives in the region. It also sustains work for a major US defense contractor, The Boeing Company, contributing to the health of the US defense industrial base and maintaining expertise in critical support services.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W58RGZ23R0088
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: $34,333,926
Exercised Options: $22,988,025
Current Obligation: $22,988,025
Subaward Activity
Number of Subawards: 20
Total Subaward Amount: $3,050,858
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-11-28
Current End Date: 2026-11-27
Potential End Date: 2028-05-28 12:05:00
Last Modified: 2026-01-12
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