Boeing awarded $33.7M for KC-135 programmed depot maintenance, a critical component for Air Force readiness

Contract Overview

Contract Amount: $33,697,821 ($33.7M)

Contractor: Boeing Aerospace Operations, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-11-16

End Date: 2016-09-30

Contract Duration: 1,780 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: KC-135 - PROGRAMMED DEPOT MAINTENANCE

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78226

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $33.7 million to BOEING AEROSPACE OPERATIONS, INC. for work described as: KC-135 - PROGRAMMED DEPOT MAINTENANCE Key points: 1. Contract value represents a significant investment in maintaining the aging KC-135 fleet. 2. Boeing's extensive experience with Air Force aircraft likely contributed to its selection. 3. The firm-fixed-price structure aims to control costs and provide predictability. 4. Performance period spans nearly five years, indicating a substantial maintenance requirement. 5. This contract is crucial for ensuring the operational availability of a key strategic asset. 6. The award falls within the broader category of aircraft parts and auxiliary equipment manufacturing.

Value Assessment

Rating: good

The contract value of $33.7 million for programmed depot maintenance on KC-135 aircraft appears reasonable given the scope and duration. While specific benchmark data for this exact service is not provided, depot maintenance for large, complex military aircraft is inherently costly. Boeing's long-standing relationship with the Air Force and its established infrastructure for such work suggest a potentially competitive pricing structure, though direct comparisons to other sole-source or limited-competition contracts for similar services would be needed for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of three bidders suggests a healthy level of competition for this specialized maintenance service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited solicitations.

Taxpayer Impact: The full and open competition for this contract is beneficial for taxpayers as it likely resulted in a more competitive price and a wider range of technical solutions being considered, maximizing the value of government funds.

Public Impact

The primary beneficiaries are the U.S. Air Force and its operational readiness, ensuring the KC-135 fleet remains functional. Services delivered include programmed depot maintenance, essential for the longevity and performance of the aircraft. The geographic impact is national, supporting Air Force bases and global operations reliant on the KC-135. Workforce implications include skilled technicians and support staff at Boeing facilities involved in the maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the firm-fixed-price contract.
Dependence on a single contractor for critical maintenance could pose supply chain risks.
Aging KC-135 fleet may require increasingly complex and costly maintenance over time.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Boeing's established expertise in aerospace maintenance reduces technical risk.
Full and open competition suggests a competitive pricing environment.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and support services. The market for military aircraft depot maintenance is specialized, often dominated by original equipment manufacturers or large aerospace contractors with the necessary expertise and facilities. Spending in this area is driven by the need to maintain aging fleets and ensure operational readiness, with significant government investment allocated annually to sustain critical aviation assets.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While Boeing is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors, particularly in specialized component repair or material supply. The extent of small business subcontracting would depend on Boeing's procurement practices and the specific requirements of the maintenance work.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded within the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award announcements and public contract databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

KC-135 Stratotanker Sustainment
Air Mobility Command Aircraft Maintenance
Defense Contract Management Agency Services
Aerospace Parts Manufacturing and Repair

Risk Flags

Contract awarded to incumbent/experienced contractor.
Long performance period for maintenance services.
Aging aircraft fleet requires ongoing, potentially costly maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.7 million to BOEING AEROSPACE OPERATIONS, INC.. KC-135 - PROGRAMMED DEPOT MAINTENANCE

Who is the contractor on this award?

The obligated recipient is BOEING AEROSPACE OPERATIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $33.7 million.

What is the period of performance?

Start: 2011-11-16. End: 2016-09-30.

What is Boeing's track record with KC-135 maintenance contracts?

Boeing has a long-standing relationship with the U.S. Air Force and has historically been involved in the maintenance and sustainment of the KC-135 Stratotanker fleet. This includes various levels of maintenance, from routine servicing to more extensive programmed depot maintenance. Their extensive experience with this specific aircraft type, which has been in service for decades, suggests a deep understanding of its maintenance requirements and potential issues. Past performance on similar contracts would have been a key evaluation factor during the competitive bidding process for this award, contributing to their selection.

How does the $33.7 million contract value compare to previous KC-135 maintenance efforts?

Direct comparison of this $33.7 million contract value to previous KC-135 programmed depot maintenance efforts requires access to historical contract data for similar scopes of work. However, considering the aging nature of the KC-135 fleet and the increasing complexity of maintenance as aircraft age, it is plausible that maintenance costs could trend upwards over time due to the need for more extensive repairs or component replacements. The firm-fixed-price nature of this contract aims to cap costs, but the overall annual spending on KC-135 maintenance can fluctuate based on fleet condition and operational tempo.

What are the primary risks associated with this programmed depot maintenance contract?

The primary risks associated with this contract include potential cost growth if unforeseen maintenance issues arise that are not adequately covered by the firm-fixed-price structure, although such contracts are designed to mitigate this. Another risk is the dependency on a single contractor, Boeing, for critical maintenance, which could lead to supply chain disruptions or delays if Boeing faces internal operational challenges. Furthermore, the aging KC-135 fleet itself presents inherent risks, as older aircraft may require more frequent and complex repairs, potentially straining maintenance capacity and increasing the likelihood of schedule slippage.

How effective is programmed depot maintenance in extending the life of the KC-135 fleet?

Programmed depot maintenance (PDM) is a critical and highly effective strategy for extending the operational life of aging aircraft fleets like the KC-135 Stratotanker. PDM involves comprehensive inspections, repairs, and overhauls that address structural integrity, system functionality, and component wear that cannot be managed through routine line maintenance. By systematically refurbishing key aircraft systems and structures, PDM helps to prevent catastrophic failures, maintain performance standards, and ensure the aircraft remains safe and reliable for its intended missions, thereby maximizing the return on investment for these long-serving assets.

What is the historical spending trend for KC-135 maintenance programs?

Historical spending on KC-135 maintenance programs has been substantial and consistent, reflecting the strategic importance and long service life of the aircraft. Over the decades, the U.S. Air Force has allocated significant funds annually to ensure the operational readiness of the KC-135 fleet, which serves as a vital aerial refueling and airlift platform. Spending patterns would have likely seen fluctuations based on major upgrade programs, fleet age, and operational demands. While specific aggregate historical spending figures require detailed database analysis, it is understood that sustainment of such a large and critical fleet represents a continuous and considerable budgetary commitment.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Boeing Company (UEI: 009256819)

Address: 375 AIRLIFT DR SECOND FL C43, SAN ANTONIO, TX, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $33,697,821

Exercised Options: $33,697,821

Current Obligation: $33,697,821

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810507D0002

IDV Type: IDC

Timeline