Answer To: Assignment: Federal Contracting Activities and Contract Types Pick one (1) of the top 100 federal...
Robert answered on Dec 20 2021
Running Head: BUSINESS PRICE ANALYSIS
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Business Price Analysis
Running Head: BUSINESS PRICE ANALYSIS
Business Price Analysis
Student’s Name
Instructor’s Name
Course Title
Date
Boeing Co.
History and Background of the Company
Boeing Co. started its operation on July 15, 1916 under William Boeing who built the first airplane of the company that accommodated only two people and covered a distance of 515 km. In 1917, the company changed its name to Boeing Airplane Company producing its initial production airplane named the Model C seaplane. The company has its headquarters in Puget Sound region in Washington State. In 1920s, the company produced a number of mail, fighter and passenger planes with United States Navy and Post Office forming its largest customers (“Boeing Commercial Airplanes,” 2012).
The company played a significant role during World War II where it produced bombers and fighters who coordinated with some of its competing companies such as Douglas Aircraft Company, Bell Aircraft Company, Lockheed Aircraft Corporation and Glenn L. Martin Company. At the end of World War II, lack of military orders in the United States forced the company close some of its factories and retrench more than 70,000 employees. This untimely decrease in employees made the company explore its commercial aircraft industry. The company produced the Atlantic jetliners, Boeing 707 making it a primary producer of commercial jets in the world (Glick & Hall, 2004, pp. 3-4).
In 1960s, Boeing reaped profits from aeroplane business in space race, which it signed with U.S military. However, in 1970, the profits reduced significantly forcing the company to lay off 40,000 jobs in a period of one year (1970-1971). To curb the situation, the company ventured into several related and unrelated businesses, which included housing project management, computer products, light rail vehicles and water treatment. However, almost all of these ventures were short-lived making the company realise limited success. In 1996, Boeing Co. collaborated with Rockwell International Corporation’s aerospace to boost the production abilities of its defence equipment. In 2000, the company purchased electronic business and Hughes Electronic Corporation’s space. In 2001, Boeing shifted its headquarters from Washington to Chicago with its aircraft division remaining in Seattle (Glick & Hall, 2004, pp. 3-4).
A Recent Contract awarded to Boeing Co.
Pentagon has been attempting to replace its refuelling tankers, which started their operation under President Dwight Eisenhower for nearly a decade. However, this attempt faced political military procurement process. Past attempts to arrive at the contractor have failed because of procurement and protests scandals. Awarding of the contract to Boeing Company marks the third attempt by Pentagon. Initially, Boeing had a contract with the pentagon blocked by some of the official members in the industry who claimed that Boeing had illegal dealings with the US Air Force. Boeing’s second attempt saw it winning the contract a gain. In 2003 Boeing Company was awarded a contract worth more than $ 30 billion by Pentagon to supply aerial refuelling tankers. The contract led to the launch of fresh trans-Atlantic political debate in the country. The contract preserved Boeing’s position as a leading supplier of refuelling aircraft to the United States Air Force making it a national champion in the country. Pentagon’s decision created a perception in the European capitals that defence market for the United States, the largest in the world remains bunged to the European defence suppliers (Hodge, 2011).
Boeing worn the...