Navy Aviation Contract with Boeing Exceeds $55M, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $55,241,931 ($55.2M)
Contractor: THE Boeing Company (0674)
Awarding Agency: Department of Defense
Start Date: 2012-09-28
End Date: 2022-06-30
Contract Duration: 3,562 days
Daily Burn Rate: $15.5K/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 $55.2 million to THE BOEING COMPANY (0674) for work described as: NAVY AVIATION Key points: 1. The contract, valued at over $55 million, supports Navy Aviation systems. 2. The Boeing Company is the sole awardee, indicating significant market presence. 3. Awarded under full and open competition after exclusion of sources, suggesting a competitive process. 4. The contract spans nearly 10 years, from 2012 to 2022, indicating long-term support.
Value Assessment
Rating: good
The contract value of $55.2 million over 10 years appears reasonable for specialized aviation systems. Benchmarking against similar complex defense contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: The competitive award process likely resulted in a fair price, minimizing unnecessary taxpayer expenditure for these critical aviation systems.
Public Impact
Ensures continued operational readiness for Navy aviation assets. Supports advanced technology and manufacturing capabilities within the aerospace sector. Contributes to national defense and security through specialized system maintenance and upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to price escalation if not managed.
- Sole awardee to Boeing may limit future competition if not re-competed effectively.
Positive Signals
- Full and open competition ensures a baseline of fairness.
- Firm fixed price contract mitigates cost overrun risk for the government.
- Long-term award provides stability for critical defense systems.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on navigation and guidance systems for naval aviation. Spending in this area is critical for maintaining technological superiority and operational effectiveness.
Small Business Impact
The data indicates the primary awardee is The Boeing Company, a large aerospace manufacturer. There is no explicit information on small business participation in this specific contract, which warrants further investigation.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense. Oversight would typically involve program management reviews and contract performance monitoring to ensure compliance and value.
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
- Potential for vendor lock-in due to long duration and single awardee.
- Lack of explicit small business participation data.
- Need for detailed performance metrics to ensure ongoing value.
- Risk of technological obsolescence if upgrades are not managed proactively.
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 $55.2 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 $55.2 million.
What is the period of performance?
Start: 2012-09-28. End: 2022-06-30.
What specific systems or components does this contract cover within Navy Aviation?
The contract's North American Industry Classification System (NAICS) code, 334511, identifies it as pertaining to Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing. This suggests the contract covers the production, maintenance, or upgrade of critical avionics and related hardware essential for naval aircraft operations.
What are the potential risks associated with a long-term contract awarded to a single large prime contractor?
A significant risk is vendor lock-in, where the government becomes overly reliant on one supplier, potentially reducing future competitive pressure and leading to higher prices. There's also a risk of complacency or reduced innovation from the contractor over the contract's extended duration. Effective contract management and clear performance metrics are crucial to mitigate these risks.
How does the 'full and open competition after exclusion of sources' clause impact price discovery and overall value?
This clause implies that while the competition was open, certain sources were initially excluded, possibly due to specific technical requirements or prior relationships. The 'full and open' aspect suggests multiple bidders were allowed to compete once eligible. This balance aims to leverage competition while ensuring specialized needs are met, potentially leading to competitive pricing within a defined scope.
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: FIRE CONTROL EQPT.
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
Address: 6200 J S MCDONNELL BLVD, SAINT LOUIS, MO, 63134
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $55,241,931
Exercised Options: $55,241,931
Current Obligation: $55,241,931
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038307D001J
IDV Type: IDC
Timeline
Start Date: 2012-09-28
Current End Date: 2022-06-30
Potential End Date: 2022-06-30 00:00:00
Last Modified: 2022-08-17
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