DoD's $54M F-15E MTC ADR Settlement with Boeing: A Firm Fixed Price Contract
Contract Overview
Contract Amount: $54,007,726 ($54.0M)
Contractor: THE Boeing Company (0674)
Awarding Agency: Department of Defense
Start Date: 2012-09-07
End Date: 2014-07-21
Contract Duration: 682 days
Daily Burn Rate: $79.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F-15E MTC ADR SETTLEMENT
Place of Performance
Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $54.0 million to THE BOEING COMPANY (0674) for work described as: F-15E MTC ADR SETTLEMENT Key points: 1. The contract value is $54,007,726. 2. The sole contractor is The Boeing Company. 3. The contract was awarded under full and open competition. 4. The sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing.
Value Assessment
Rating: fair
The contract was awarded at a firm fixed price, which typically aims to control costs. However, the settlement nature of this award suggests potential cost overruns or disputes that may have impacted the final price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a competitive bidding process. This method is designed to achieve fair market prices, but the settlement aspect raises questions about the ultimate price discovery.
Taxpayer Impact: Taxpayer funds were used for this settlement, the specifics of which are not fully detailed but represent a significant expenditure for aircraft parts and auxiliary equipment.
Public Impact
This settlement impacts the Department of the Air Force's readiness and operational capabilities for the F-15E aircraft. The financial settlement with Boeing represents a significant expenditure of taxpayer money. The nature of the settlement may indicate issues with contract management or performance that could affect future procurements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Settlement implies potential cost overruns or disputes.
- Lack of detailed breakdown for the settlement amount.
- Contract duration was extended significantly (682 days).
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. Spending in this sector is critical for national security and maintaining military readiness.
Small Business Impact
The prime contractor is The Boeing Company, a large aerospace firm. There is no specific information provided regarding small business participation in this particular contract award.
Oversight & Accountability
The settlement nature of this award warrants further oversight to understand the root causes of the dispute and ensure accountability in future contract management and execution.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential cost overruns indicated by settlement.
- Lack of transparency on settlement details.
- Extended contract duration.
- Sole source award to Boeing after initial competition.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, mo, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.0 million to THE BOEING COMPANY (0674). F-15E MTC ADR SETTLEMENT
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 Air Force).
What is the total obligated amount?
The obligated amount is $54.0 million.
What is the period of performance?
Start: 2012-09-07. End: 2014-07-21.
What specific issues led to the ADR settlement, and how do they compare to industry standards for similar contracts?
The provided data does not detail the specific issues leading to the Alternative Dispute Resolution (ADR) settlement. Typically, settlements arise from disagreements over contract scope, performance, or pricing. Without this information, a direct comparison to industry standards for similar contracts is not possible, but settlements often indicate deviations from the original contract's expected cost or timeline.
What is the per-unit cost benchmark for the F-15E MTC ADR SETTLEMENT components, and how does the settlement price compare?
A per-unit cost benchmark is not available from the provided data. The total award amount is $54,007,726 for the F-15E MTC ADR SETTLEMENT. Without knowing the number of units or specific components involved, and lacking a detailed breakdown of the settlement costs, it's impossible to establish a per-unit cost or compare it to any benchmark.
How effectively did the full and open competition process ensure value for money given the subsequent settlement?
While full and open competition is designed to ensure value for money, the subsequent settlement suggests that the initial competitive process may not have fully accounted for all potential costs or risks. The settlement indicates that the final price may have deviated from the initially anticipated value, raising questions about the effectiveness of the price discovery mechanism in this specific instance.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Boeing Company (UEI: 009256819)
Address: J S MCDONNELL BLVD, SAINT LOUIS, MO, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $54,007,726
Exercised Options: $54,007,726
Current Obligation: $54,007,726
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F3365701D2074
IDV Type: IDC
Timeline
Start Date: 2012-09-07
Current End Date: 2014-07-21
Potential End Date: 2014-07-21 00:00:00
Last Modified: 2014-11-24
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