THE BOEING COMPANY

# Boeing Company - Vendor Assessment

## Agency Concentration Risk

Boeing demonstrates severe concentration risk, with the Department of Defense commanding 69% ($146.4B) of total obligated value across 966 awards. NASA represents the secondary revenue stream at 30.5% ($64.5B) with only 20 awards, indicating substantially larger individual contract values. Combined, these two agencies account for 99.5% of Boeing's federal portfolio. The remaining six agencies contribute negligibly, representing acute dependency on two primary customers and corresponding vulnerability to budget fluctuations or policy shifts.

## Contract Expiry Exposure

$65.6 billion in obligated value expires within 18 months, representing 31% of total portfolio value. This substantial near-term exposure creates significant revenue uncertainty and requires aggressive re-competition efforts. The concentration of expiring contracts likely mirrors DoD's portfolio composition, amplifying risk if major defense programs face delays or cancellation.

## NAICS Diversification

Boeing operates across 10 NAICS codes with moderate diversification. Aircraft parts manufacturing (336413) dominates with 464 awards, followed by aircraft manufacturing (336411) with 134 awards. These two codes represent the core business. Engineering services (541330) and navigation systems manufacturing (334511) provide supplementary revenue streams, though the portfolio remains fundamentally aerospace-centric with limited cross-sector exposure.

## Strategic Outlook

Boeing's federal contracting position reflects classic prime contractor dynamics—highly specialized, customer-concentrated, and cyclically dependent. The 31% near-term expiry rate demands immediate capture management. Diversification beyond aerospace and defense remains strategically limited by core competencies. Sustained performance and relationship management with DoD and NASA are critical to portfolio stability.