Boeing Awarded $30.8M for PM-WIN-T FISA Kits by Department of the Army
Contract Overview
Contract Amount: $30,770,655 ($30.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2016-03-02
End Date: 2022-08-26
Contract Duration: 2,368 days
Daily Burn Rate: $13.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AWARD TO BOEING FOR FISA KITS, IN SUPPORT OF PM-WIN-T.
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78226
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $30.8 million to THE BOEING COMPANY for work described as: AWARD TO BOEING FOR FISA KITS, IN SUPPORT OF PM-WIN-T. Key points: 1. Significant award to a major defense contractor. 2. Lack of competition raises concerns about price discovery. 3. Potential for higher costs due to sole-source nature. 4. Focus on critical military communication systems.
Value Assessment
Rating: questionable
The $30.8 million award for FISA kits lacks a clear benchmark for comparison due to its sole-source nature. Without competitive bids, assessing the value for money is difficult, suggesting potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Boeing. This significantly limits price discovery and may lead to less favorable terms for the government compared to a competitive process.
Taxpayer Impact: The lack of competition could result in taxpayers paying a premium for these essential communication kits.
Public Impact
Ensures critical communication capabilities for military personnel. Supports ongoing operations and modernization efforts within the Army. Highlights reliance on specific contractors for specialized equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Long contract duration
Positive Signals
- Supports critical military program
- Award to established defense contractor
Sector Analysis
This award falls within the aerospace and defense sector, specifically for aircraft parts and auxiliary equipment. Spending in this area is often characterized by high R&D costs and specialized manufacturing, with a significant portion going to large, established contractors.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor, and there is no indication of small business participation. This award does not appear to benefit small businesses.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of the Army received fair pricing and that the justification for not competing the contract is robust.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for overpayment due to lack of competition.
- Limited visibility into cost drivers.
- Long contract performance period.
- No small business participation noted.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.8 million to THE BOEING COMPANY. AWARD TO BOEING FOR FISA KITS, IN SUPPORT OF PM-WIN-T.
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 $30.8 million.
What is the period of performance?
Start: 2016-03-02. End: 2022-08-26.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without further details, it's difficult to ascertain the specific reasons. However, the Army should have explored all viable options to ensure competition was maximized or that the sole-source justification was exceptionally strong and documented.
How does the unit cost of these FISA kits compare to similar procurements or industry benchmarks, if available?
Given the sole-source nature of this award, direct comparison to similar procurements is challenging. Industry benchmarks for highly specialized military communication equipment can be difficult to obtain publicly. The government should have conducted a thorough price analysis based on historical data, cost breakdowns, or other available information to ensure the price was fair and reasonable.
What is the long-term strategy for ensuring competitive sourcing of these critical communication components?
The long-term strategy should involve market research to identify potential competitors, fostering competition through phased procurements, or developing alternative technologies. If Boeing holds unique intellectual property, the strategy might include licensing agreements or developing government-off-the-shelf alternatives to reduce reliance on a single source over time.
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
Solicitation ID: W911QY15R0048
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5301 BOLSA AVE, HUNTINGTON BEACH, CA, 92647
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: $30,770,655
Exercised Options: $30,770,655
Current Obligation: $30,770,655
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2016-03-02
Current End Date: 2022-08-26
Potential End Date: 2022-08-26 00:00:00
Last Modified: 2025-12-31
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