Navy Aviation Contract Awarded to Boeing for $41.98M for Navigation Systems
Contract Overview
Contract Amount: $41,984,208 ($42.0M)
Contractor: THE Boeing Company (0674)
Awarding Agency: Department of Defense
Start Date: 2010-10-07
End Date: 2011-10-07
Contract Duration: 365 days
Daily Burn Rate: $115.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NAVY AVIATION
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $42.0 million to THE BOEING COMPANY (0674) for work described as: NAVY AVIATION Key points: 1. Boeing secured a significant contract for aviation navigation systems. 2. The contract value is substantial at over $41 million. 3. Competition was full and open after excluding sources, suggesting a deliberate procurement strategy. 4. The sector is critical for defense operations, highlighting the importance of reliable navigation. 5. The firm fixed price contract type aims to control costs.
Value Assessment
Rating: good
The contract value of $41.98 million for navigation systems appears reasonable given the specialized nature of defense aviation equipment. Benchmarking against similar complex system procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement utilized full and open competition after excluding sources, indicating an effort to ensure a competitive process while potentially addressing specific technical requirements. This method generally promotes price discovery and value for the government.
Taxpayer Impact: The use of full and open competition is intended to secure the best value for taxpayers by encouraging multiple bidders to offer competitive pricing for essential defense systems.
Public Impact
Ensures operational readiness for Navy aviation through advanced navigation technology. Supports critical defense capabilities, impacting national security. The contract contributes to the aerospace manufacturing sector. Potential for technological advancements in navigation systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creeps beyond initial fixed-price agreement.
- Dependence on a single supplier (Boeing) for critical components.
- Long-term sustainment costs not explicitly detailed.
Positive Signals
- Firm fixed price contract helps manage budget certainty.
- Full and open competition aims for best value.
- Award to a major defense contractor suggests proven capability.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on navigation and guidance systems for naval aviation. Spending in this area is driven by defense modernization needs and operational requirements, with benchmarks varying widely based on system complexity and quantity.
Small Business Impact
The data indicates the prime contractor is The Boeing Company, a large aerospace firm. There is no direct information on small business participation in this specific award, but large prime contracts often involve subcontracting opportunities for small businesses within the supply chain.
Oversight & Accountability
The Department of Defense and Department of the Navy are responsible for oversight. The firm fixed price contract and full and open competition structure provide a degree of accountability. Further oversight would involve performance monitoring and compliance checks.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract awarded to a single large prime contractor.
- Potential for sole-source follow-on contracts.
- Limited visibility into specific technological advancements.
- Sustainment and upgrade costs not detailed in award data.
Tags
search-detection-navigation-guidance-aer, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.0 million to THE BOEING COMPANY (0674). NAVY AVIATION
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY (0674).
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $42.0 million.
What is the period of performance?
Start: 2010-10-07. End: 2011-10-07.
What is the specific technological advancement or capability this contract is intended to procure?
The contract is for 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing,' suggesting it aims to procure or upgrade sophisticated navigation and guidance systems critical for naval aviation operations. The exact technological advancement would depend on the specific requirements outlined in the delivery order, potentially including enhanced accuracy, new sensor integration, or improved situational awareness features for pilots.
What are the potential risks associated with relying on Boeing for these critical navigation systems?
Risks include potential supply chain disruptions affecting Boeing's ability to deliver, the possibility of cost increases if unforeseen technical challenges arise despite the fixed-price structure, and long-term dependence on a single vendor for maintenance and upgrades. National security could be impacted if these systems fail or become obsolete without timely replacements.
How effectively does this contract ensure the long-term value and operational effectiveness of Navy aviation?
The contract's effectiveness hinges on the system's performance and reliability in meeting operational needs. The firm fixed price and competitive award suggest an initial focus on value. Long-term effectiveness will depend on the system's durability, ease of integration with future platforms, and the cost and availability of sustainment and upgrades over its lifecycle.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Boeing Company (UEI: 009256819)
Address: 6200 J S MCDONNELL BLVD, SAINT LOUIS, MO, 63134
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $56,356,488
Exercised Options: $56,356,488
Current Obligation: $41,984,208
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038307D001J
IDV Type: IDC
Timeline
Start Date: 2010-10-07
Current End Date: 2011-10-07
Potential End Date: 2019-06-22 00:00:00
Last Modified: 2018-07-18
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