DoD's $288.7M KC-135 PDM Contract Awarded to Boeing Amidst Full and Open Competition
Contract Overview
Contract Amount: $28,869,373 ($28.9M)
Contractor: Boeing Aerospace Operations, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-11-06
End Date: 2016-09-30
Contract Duration: 1,424 days
Daily Burn Rate: $20.3K/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 $28.9 million to BOEING AEROSPACE OPERATIONS, INC. for work described as: KC-135 PROGRAMMED DEPOT MAINTENANCE Key points: 1. Boeing secured a significant contract for KC-135 Programmed Depot Maintenance. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The total value of the contract is $288.7 million over approximately 3.9 years. 4. The contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code.
Value Assessment
Rating: good
The contract value of $288.7 million for depot maintenance over nearly four years appears reasonable given the scope of work for a major aircraft fleet. Benchmarking against similar large-scale aircraft maintenance contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, with pricing driven by market forces rather than sole-source limitations.
Public Impact
Ensures continued operational readiness of the KC-135 Stratotanker fleet, vital for refueling and airlift missions. Supports jobs within the aerospace manufacturing and maintenance sector, particularly at Boeing. The maintenance ensures the safety and longevity of critical military assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen maintenance issues arise.
- Dependence on a single contractor for a critical fleet's maintenance.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type helps control costs.
- Long-term contract provides stability for maintenance operations.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance. Spending in this area is crucial for maintaining military readiness and can be benchmarked against historical depot maintenance costs for similar aircraft platforms.
Small Business Impact
While the primary awardee is Boeing Aerospace Operations, Inc., a large corporation, the contract may indirectly benefit small businesses through subcontracting opportunities within the aerospace supply chain. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a robust initial vetting process. Ongoing oversight would focus on performance metrics, adherence to schedule, and quality control to ensure taxpayer value and operational effectiveness.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract awarded to a single large business prime.
- Potential for supply chain disruptions impacting maintenance timelines.
- Aging aircraft may present unforeseen maintenance challenges.
- Long duration of contract increases exposure to economic fluctuations.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.9 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 $28.9 million.
What is the period of performance?
Start: 2012-11-06. End: 2016-09-30.
What is the projected cost per aircraft for this depot maintenance cycle?
The provided data does not specify the number of aircraft covered by this $288.7 million contract. Therefore, a precise cost per aircraft cannot be calculated. To determine this, one would need the total number of KC-135 aircraft scheduled for programmed depot maintenance under this award and divide the total contract value by that number.
What are the key performance indicators (KPIs) for this contract to ensure effectiveness?
Key performance indicators for this contract would likely include on-time delivery of aircraft, adherence to maintenance schedules, quality of repairs (e.g., defect rates post-maintenance), and compliance with safety regulations. The Air Force would monitor these KPIs to ensure the KC-135 fleet remains mission-ready and that the maintenance performed is effective and meets stringent standards.
Are there any identified risks associated with Boeing's ability to perform this extensive maintenance?
The data indicates the contract was awarded under full and open competition, suggesting Boeing was deemed capable. However, risks could include supply chain disruptions for parts, labor shortages, or unforeseen technical challenges with aging aircraft. The firm fixed-price nature of the contract shifts some of this risk to Boeing, but the government's risk lies in potential delays or performance shortfalls impacting fleet readiness.
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: $28,869,373
Exercised Options: $28,869,373
Current Obligation: $28,869,373
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810507D0002
IDV Type: IDC
Timeline
Start Date: 2012-11-06
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2013-12-31
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