DoD awards $1.27B to Boeing for Aircraft Manufacturing, raising concerns about competition
Contract Overview
Contract Amount: $1,273,034,918 ($1.3B)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2010-06-22
End Date: 2011-10-26
Contract Duration: 491 days
Daily Burn Rate: $2.6M/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MIGRATED DATA VALUE UNKNOWN
Place of Performance
Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90807
Plain-Language Summary
Department of Defense obligated $1.27 billion to THE BOEING COMPANY for work described as: MIGRATED DATA VALUE UNKNOWN Key points: 1. Significant contract value of $1.27 billion awarded to a single large corporation. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The contract falls under Aircraft Manufacturing, a critical defense sector. 4. Potential risks associated with sole-source awards and reliance on a single vendor.
Value Assessment
Rating: questionable
The contract value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal. Benchmarking against similar aircraft manufacturing contracts would be necessary for a thorough evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for a contract of this magnitude could lead to inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. Reliance on a single contractor for critical aircraft manufacturing could pose supply chain risks. The large sum allocated could potentially be used more effectively through competitive contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
- Unknown data for migrated data value
Positive Signals
- Contract awarded to a major defense manufacturer
- Firm Fixed Price contract type
Sector Analysis
This contract is within the Aircraft Manufacturing sector, which is a significant part of the defense industry. Spending in this sector can be substantial, and competitive bidding is crucial for ensuring value.
Small Business Impact
The contract was awarded to The Boeing Company, a large corporation, with no indication of small business involvement. This suggests a lack of opportunity for small businesses in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value and that the contractor is meeting all performance requirements.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- High contract value
- Potential for overpricing
- Limited small business participation
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.27 billion to THE BOEING COMPANY. MIGRATED DATA VALUE UNKNOWN
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 $1.27 billion.
What is the period of performance?
Start: 2010-06-22. End: 2011-10-26.
What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically involves specific circumstances such as the existence of only one responsible source, urgent and compelling needs, or national security requirements that preclude competition. Without further documentation, it is impossible to determine the precise reason for this contract's non-competitive nature.
How does the awarded price compare to industry benchmarks for similar aircraft manufacturing contracts, given the lack of competition?
Direct comparison is challenging without competitive data. However, sole-source contracts are inherently at higher risk of being overpriced compared to competitively awarded ones. A thorough post-award review or independent cost analysis would be needed to assess the fairness of the price against industry standards.
What measures are in place to ensure the effectiveness and performance of The Boeing Company under this large, non-competed contract?
Standard contract management practices, including performance monitoring, quality assurance checks, and milestone tracking, should be rigorously applied. Given the sole-source nature, enhanced oversight from the Defense Contract Management Agency is crucial to ensure deliverables meet specifications and timelines.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2401 E WARDLOW RD, LONG BEACH, CA, 90807
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,782,606,352
Exercised Options: $1,782,606,352
Current Obligation: $1,273,034,918
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA861406D2006
IDV Type: IDC
Timeline
Start Date: 2010-06-22
Current End Date: 2011-10-26
Potential End Date: 2011-10-26 00:00:00
Last Modified: 2017-10-18
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