DoD awards Boeing $2.28 billion for aircraft sustainment services
Contract Overview
Contract Amount: $2,285,494,120 ($2.3B)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2012-10-01
End Date: 2020-01-31
Sector: Defense
Official Description: AIRCRAFT SUSTAINMENT
Plain-Language Summary
Department of Defense obligated $2.29 billion to THE BOEING COMPANY for work described as: AIRCRAFT SUSTAINMENT Key points: 1. Significant contract awarded to a single, large aerospace manufacturer. 2. Long-term sustainment services indicate a need for ongoing operational support. 3. Potential for cost overruns or performance issues in complex aircraft maintenance. 4. Limited competition may impact pricing and innovation.
Value Assessment
Rating: good
The contract value of over $2.28 billion for aircraft sustainment is substantial, reflecting the critical nature of maintaining military aviation assets. The duration of the contract suggests a long-term commitment to ensuring fleet readiness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This appears to be a sole-source award to The Boeing Company, likely due to specialized knowledge or existing platform integration. This limits competitive bidding opportunities.
Taxpayer Impact: Taxpayers may face higher costs due to the lack of competition.
Public Impact
Ensures continued readiness of critical military aircraft. Supports jobs within the aerospace and defense industry. Potential for increased costs impacting defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Risk of sole-source pricing inefficiencies.
- Dependency on a single contractor for essential services.
- Potential for scope creep or unmanaged cost growth over the contract term.
Positive Signals
- Ensures availability of specialized sustainment expertise.
- Supports long-term operational readiness of key defense assets.
- Potential for streamlined support through a single point of contact.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on the sustainment and maintenance of aircraft, which is a crucial component of national security operations.
Small Business Impact
The contract was awarded to a large prime contractor, The Boeing Company, and there is no indication of small business participation or set-aside provisions in the provided data.
Oversight & Accountability
Oversight is likely managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contract compliance and performance. The long duration necessitates continuous monitoring for cost and schedule adherence.
Related Government Programs
- Aircraft Sustainment
- Fleet Maintenance
- Aerospace Services
Risk Flags
- Sole-source award
- Long-term contract
- Potential for cost overruns
Tags
aircraft-sustainment, department-of-defense, the-boeing-company, sole-source, defense-contract-management-agency, long-term-contract, aerospace, military-aviation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.29 billion to THE BOEING COMPANY. AIRCRAFT SUSTAINMENT
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 $2.29 billion.
What is the period of performance?
Start: 2012-10-01. End: 2020-01-31.
Analysis insight 1
The contract's sole-source nature warrants scrutiny to ensure fair pricing.
Analysis insight 2
Performance metrics and delivery schedules are key indicators of success.
Analysis insight 3
The long-term commitment suggests a strategic need for Boeing's specific capabilities.