Boeing awarded $1.65 billion contract for Air Force aircraft upgrades
Contract Overview
Contract Amount: $1,655,050,154 ($1.7B)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2011-05-13
End Date: 2013-07-31
Sector: Defense
Official Description: FY10 UCA FOR 5 USAF A/C
Plain-Language Summary
Department of Defense obligated $1.66 billion to THE BOEING COMPANY for work described as: FY10 UCA FOR 5 USAF A/C Key points: 1. Significant investment in enhancing Air Force capabilities. 2. Sole-source award to Boeing suggests limited competition. 3. Potential risks associated with single-vendor reliance. 4. Contract duration spans over two years.
Value Assessment
Rating: good
The contract value of $1.65 billion represents a substantial commitment to modernizing Air Force assets. The award is for specific upgrades to five aircraft, indicating a focused investment rather than broad fleet renewal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This appears to be a sole-source award, meaning only one company, Boeing, was considered for this contract. This could be due to specialized knowledge, existing platform integration, or a lack of viable alternatives.
Taxpayer Impact: Taxpayers are funding a significant upgrade to military hardware, with the expectation of improved operational effectiveness.
Public Impact
Enhanced military readiness and operational capabilities. Potential for job creation within the aerospace sector. Ensures continued support for existing Air Force platforms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Risk of cost overruns in sole-source contracts.
- Dependency on a single supplier for critical upgrades.
- Potential for schedule delays if issues arise with Boeing.
Positive Signals
- Direct investment in national defense infrastructure.
- Leverages existing expertise of a major aerospace manufacturer.
- Aims to extend the service life and performance of key aircraft.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft modification and sustainment for military applications.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of small business participation or set-aside provisions in the provided data.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for overseeing this contract. Oversight will focus on ensuring timely delivery, adherence to specifications, and proper financial management throughout the contract period.
Related Government Programs
- Aircraft Modification
- Air Force Systems
- Defense Procurement
Risk Flags
- Sole-source justification
- Potential for cost growth
- Program schedule risk
Tags
defense, air-force, aircraft-upgrade, boeing, sole-source, contract-award, fy10, dcma
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.66 billion to THE BOEING COMPANY. FY10 UCA FOR 5 USAF A/C
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 $1.66 billion.
What is the period of performance?
Start: 2011-05-13. End: 2013-07-31.
Analysis insight 1
The specific nature of the 'UCA' (Unsolicited Contractual Action) and the exact upgrades are not detailed, impacting a full understanding of the technical scope.
Analysis insight 2
The rationale for the sole-source determination is not provided, making it difficult to assess if competitive alternatives were thoroughly explored.
Analysis insight 3
The contract's performance period suggests a multi-year effort, requiring sustained oversight to manage risks effectively.