DoD Awards Boeing $24.6M for Rotor Blades, Lacking Competition
Contract Overview
Contract Amount: $24,595,550 ($24.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2013-08-30
End Date: 2018-05-31
Contract Duration: 1,735 days
Daily Burn Rate: $14.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ACQUISITION OF 150 EA DELIVERABLE COMPOSITE MAIN ROTOR BLADES AND 3 EA DESTRUCTIVE TESTING COMPOSITE MAIN ROTOR BLADES.
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $24.6 million to THE BOEING COMPANY for work described as: ACQUISITION OF 150 EA DELIVERABLE COMPOSITE MAIN ROTOR BLADES AND 3 EA DESTRUCTIVE TESTING COMPOSITE MAIN ROTOR BLADES. Key points: 1. Significant contract value for specialized aerospace components. 2. Sole-source award to Boeing raises questions about competitive pricing. 3. Potential risk associated with single-source reliance for critical defense parts. 4. Spending falls within the Defense sector, specifically aerospace manufacturing.
Value Assessment
Rating: questionable
The $24.6 million award for rotor blades appears high given the lack of competition. Benchmarking against similar sole-source contracts for specialized aerospace components is difficult but warrants scrutiny.
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. The absence of competition likely resulted in higher prices than if multiple vendors had vied for the contract.
Taxpayer Impact: Taxpayers may have overpaid due to the lack of competitive bidding on this significant defense procurement.
Public Impact
Essential helicopter components procured without competitive bidding. Defense budget allocated to a single, established aerospace contractor. Potential for increased costs impacting overall military readiness funding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Award to established defense contractor
- Specific component for military aircraft
Sector Analysis
This contract falls under the Defense sector, specifically related to aerospace manufacturing and maintenance. Spending on specialized components like rotor blades can be substantial, but competitive sourcing is crucial for cost efficiency.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award suggests a potential gap in competitive oversight. Further review is needed to understand why this procurement was not competed and if adequate price justification was obtained.
Related Government Programs
- Relay and Industrial Control Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
- Supply chain risk
Tags
relay-and-industrial-control-manufacturi, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.6 million to THE BOEING COMPANY. ACQUISITION OF 150 EA DELIVERABLE COMPOSITE MAIN ROTOR BLADES AND 3 EA DESTRUCTIVE TESTING COMPOSITE MAIN ROTOR BLADES.
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 Logistics Agency).
What is the total obligated amount?
The obligated amount is $24.6 million.
What is the period of performance?
Start: 2013-08-30. End: 2018-05-31.
What was the justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED'. A full justification would typically involve details about the necessity of using a specific vendor, such as unique capabilities, proprietary technology, or urgent requirements where competition is not feasible. Without this detailed justification, it's difficult to assess the validity of the sole-source decision.
How does the per-unit cost of these rotor blades compare to industry benchmarks, considering the sole-source nature?
Benchmarking the per-unit cost is challenging without knowing the exact specifications and comparing it to similar sole-source contracts for specialized aerospace components. However, sole-source procurements generally carry a higher risk of inflated pricing compared to competitively bid contracts. A detailed cost analysis by the agency would be necessary to determine if the price was fair and reasonable.
What is the long-term risk associated with relying on a single supplier for critical rotor blade components?
The primary long-term risk is supply chain vulnerability. Dependence on a single supplier can lead to production delays, price increases, and limited options during emergencies or if the supplier faces financial or operational difficulties. This could impact aircraft availability and mission readiness for the Department of Defense.
Industry Classification
NAICS: Manufacturing › Electrical Equipment Manufacturing › Relay and Industrial Control 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: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134
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: $24,595,550
Exercised Options: $24,595,550
Current Obligation: $24,595,550
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPM4AX13D9404
IDV Type: IDC
Timeline
Start Date: 2013-08-30
Current End Date: 2018-05-31
Potential End Date: 2018-05-31 12:05:00
Last Modified: 2019-11-22
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