DoD Awards Boeing $166M for E-4B Aircraft Sustainment Services, No Competition
Contract Overview
Contract Amount: $165,939,592 ($165.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2015-12-01
End Date: 2024-11-30
Contract Duration: 3,287 days
Daily Burn Rate: $50.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: Defense
Official Description: IGF::CT::IGF E-4B SUSTAINMENT SERVICES
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $165.9 million to THE BOEING COMPANY for work described as: IGF::CT::IGF E-4B SUSTAINMENT SERVICES Key points: 1. Significant contract value for specialized aircraft sustainment. 2. Sole-source award to Boeing raises questions about competition and pricing. 3. Long contract duration (2015-2024) suggests ongoing need and potential for cost escalation. 4. Focus on E-4B sustainment highlights critical, but potentially expensive, defense asset maintenance.
Value Assessment
Rating: questionable
The contract's cost-plus structure with no fee, while intended to cover all costs, can lack incentive for cost control. Benchmarking is difficult without comparable sole-source contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, indicating a lack of competitive bidding. This method limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a contract of this magnitude likely leads to a higher overall cost for taxpayers compared to a fully competed award.
Public Impact
Ensures continued operational readiness of the E-4B, a critical command and control aircraft. Supports specialized maintenance and repair services unique to this aging fleet. Potential for taxpayer funds to be used inefficiently due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
Positive Signals
- Ensures critical asset sustainment
- Experienced contractor
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft sustainment. Spending benchmarks for sole-source sustainment contracts of this nature are difficult to establish due to their unique circumstances.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of small business participation in this specific award, suggesting limited opportunities for small businesses.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The sole-source nature warrants close scrutiny to ensure fair pricing and efficient use of funds.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
- Aging aircraft fleet
- Limited transparency on pricing
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ok, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $165.9 million to THE BOEING COMPANY. IGF::CT::IGF E-4B SUSTAINMENT SERVICES
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $165.9 million.
What is the period of performance?
Start: 2015-12-01. End: 2024-11-30.
What is the justification for the sole-source award, and have alternatives been thoroughly explored?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For the E-4B sustainment, it's likely due to the specialized nature of the aircraft and Boeing's historical role. However, a thorough review should confirm that no other qualified sources exist or could be developed to provide these services competitively.
How is cost control managed under this cost-plus contract to ensure taxpayer value?
Cost-plus contracts, especially those without a fixed fee, require robust oversight to manage costs effectively. The government must diligently audit all incurred costs, ensure they are reasonable and allocable, and monitor performance metrics closely. Establishing clear milestones and performance incentives, even within a cost-plus framework, can help mitigate risks of uncontrolled spending and ensure the contractor remains focused on efficient service delivery.
What is the long-term strategy for E-4B sustainment and potential future competition?
The current 2015-2024 contract duration suggests a need for a long-term sustainment plan. Agencies should be evaluating the future of the E-4B fleet and developing strategies for its eventual replacement or modernization. This includes assessing whether future sustainment requirements could be met through competitive procurements, potentially by fostering new market entrants or encouraging existing ones to develop relevant capabilities.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 6001 S AIR DEPOT BLVD, OKLAHOMA CITY, OK, 73135
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $171,936,662
Exercised Options: $171,936,662
Current Obligation: $165,939,592
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA810616D0002
IDV Type: IDC
Timeline
Start Date: 2015-12-01
Current End Date: 2024-11-30
Potential End Date: 2024-11-30 00:00:00
Last Modified: 2025-09-15
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