Boeing awarded $61.7M for aircraft maintenance, highlighting specialized equipment needs
Contract Overview
Contract Amount: $70,696,425 ($70.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2004-04-22
End Date: 2009-06-26
Contract Duration: 1,891 days
Daily Burn Rate: $37.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200407!000047!5700!GU11 !ASC/VXK !F3365798D0002 !A!N! !N!0061 ! !20040422!20061206!617869912!085188316!009256819!N!THE BOEING COMPANY !626 ANCHORS ST NW !FORT WALTON BE !FL!32548!24475!091!12!FORT WALTON BEACH !OKALOOSA !FLORIDA !+000002195000!N!N!000000000000!4920!ACFT MAINT & REPAIR SHOP SPECILIZED EQUIP !A1A!AIRFRAMES AND SPARES !000 !* !336411!E! !5!B!S! ! ! !99990909!B! ! !B! !A!N!J!2!003!B! !A!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32548
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $70.7 million to THE BOEING COMPANY for work described as: 200407!000047!5700!GU11 !ASC/VXK !F3365798D0002 !A!N! !N!0061 ! !20040422!20061206!617869912!085188316!009256819!N!THE BOEING COMPANY !626 ANCHORS ST NW !FORT WALTON BE !FL!32548!24475!091!12!FORT WALTON BEACH !OKAL… Key points: 1. Contract value of $61.7 million for specialized aircraft maintenance. 2. Awarded to The Boeing Company, a major aerospace manufacturer. 3. Contract duration of over 5 years indicates a long-term need. 4. Focus on specialized equipment suggests unique maintenance requirements. 5. Procurement falls under aircraft manufacturing and repair services. 6. Full and open competition was utilized for this award.
Value Assessment
Rating: good
The contract value of $61.7 million for over five years of specialized aircraft maintenance appears reasonable given the nature of the work. Benchmarking against similar specialized maintenance contracts is challenging without more detailed service descriptions. However, The Boeing Company's extensive experience in aircraft manufacturing and support suggests a capacity to deliver on complex requirements. The firm fixed-price structure helps control costs for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. The presence of three bidders suggests a competitive environment, which typically leads to better pricing and value for the government. The specific details of the competition, such as the number of proposals received and the evaluation criteria, are not provided but the broad competition is a positive sign.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value available.
Public Impact
The primary beneficiaries are the Department of Defense, ensuring the operational readiness of specialized aircraft. Services delivered include specialized equipment maintenance for aircraft, crucial for mission effectiveness. The geographic impact is likely concentrated around the operating bases of the affected aircraft, with potential support extending to maintenance facilities. Workforce implications include the need for highly skilled technicians and engineers, potentially benefiting the aerospace workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical challenges arise with specialized equipment.
- Dependence on a single contractor for highly specialized maintenance could create future sole-source risks.
- Ensuring adequate performance metrics are met throughout the contract's duration.
Positive Signals
- Award to a reputable and experienced contractor like Boeing.
- Firm fixed-price contract type helps manage cost certainty.
- Full and open competition suggests a robust bidding process.
Sector Analysis
This contract falls within the broader aerospace and defense sector, specifically focusing on aircraft maintenance and repair. The market for specialized aircraft maintenance is often characterized by high barriers to entry due to technical expertise and proprietary knowledge. Spending in this area is critical for maintaining the operational capabilities of military fleets. Comparable spending benchmarks would depend on the specific aircraft type and the complexity of the specialized equipment involved.
Small Business Impact
There is no indication that this contract included small business set-asides. Given the specialized nature of aircraft maintenance and the prime contractor being a large aerospace firm, subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the extent of any subcontracting awarded.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the firm fixed-price contract type, which places the risk of cost overruns on the contractor. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports may be internal.
Related Government Programs
- Aircraft Maintenance and Repair
- Aerospace Manufacturing Support
- Specialized Defense Equipment Services
- Military Aircraft Sustainment
Risk Flags
- Long contract duration may increase risk of obsolescence or changing requirements.
- Specialized nature of equipment could limit competition for future needs.
- Dependence on a single large contractor for critical support.
Tags
defense, department-of-defense, defense-contract-management-agency, the-boeing-company, aircraft-maintenance, specialized-equipment, firm-fixed-price, full-and-open-competition, florida, aerospace, defense-contracting, major-contractor
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $70.7 million to THE BOEING COMPANY. 200407!000047!5700!GU11 !ASC/VXK !F3365798D0002 !A!N! !N!0061 ! !20040422!20061206!617869912!085188316!009256819!N!THE BOEING COMPANY !626 ANCHORS ST NW !FORT WALTON BE !FL!32548!24475!091!12!FORT WALTON BEACH !OKALOOSA !FLORIDA !+000002195000!N!N!000000000000!4920!ACFT MAINT & REPAIR SHOP SPECILIZED EQUIP !A1A!AIRFRAMES AND SPARES !000 !* !336411!E! !5!B!S! ! ! !999
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 $70.7 million.
What is the period of performance?
Start: 2004-04-22. End: 2009-06-26.
What is the specific type of specialized equipment requiring maintenance under this contract?
The provided data indicates the contract is for 'ACFT MAINT & REPAIR SHOP SPECILIZED EQUIP' under PSC code 4920 (Aircraft Components and Accessories). However, the exact nature of the 'specialized equipment' is not detailed. This could range from avionics, weapon systems, engines, or unique diagnostic tools specific to certain military aircraft platforms. Further investigation into the contract's statement of work would be necessary to identify the precise equipment.
How does the $61.7 million contract value compare to similar specialized aircraft maintenance contracts?
Direct comparison is difficult without knowing the specific aircraft and the scope of 'specialized equipment' maintenance. However, for a contract spanning over five years (approximately 1891 days), $61.7 million translates to roughly $12.3 million per year. This figure is within the expected range for complex, specialized maintenance services for high-value military assets, which often require significant technical expertise, unique tooling, and rigorous quality control. Contracts for less specialized maintenance or for smaller aircraft fleets would likely be lower.
What are the key performance indicators (KPIs) expected from The Boeing Company for this contract?
The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for aircraft maintenance, KPIs would include metrics such as aircraft availability rates, turnaround time for repairs, quality of work (e.g., defect rates), adherence to maintenance schedules, and compliance with safety and technical directives. The Defense Contract Management Agency (DCMA) would likely monitor these KPIs to ensure the contractor meets the government's requirements for operational readiness.
What is the historical spending pattern for this specific type of specialized aircraft maintenance by the Department of Defense?
The provided data only includes details for this single contract awarded in 2004. To assess historical spending patterns, one would need to analyze broader contract databases for similar services (PSC 4920, NAICS 336411) over multiple fiscal years. This would involve identifying all contracts related to specialized aircraft equipment maintenance, their values, durations, and the agencies awarding them. Such an analysis could reveal trends in demand, pricing, and contractor concentration within this niche.
What is The Boeing Company's track record in fulfilling similar specialized maintenance contracts for the DoD?
The Boeing Company has a long and extensive history of supporting U.S. military aircraft, including extensive maintenance, repair, and overhaul (MRO) services. They are a primary manufacturer for many platforms, giving them inherent expertise in their maintenance. While this specific contract's performance data isn't detailed here, Boeing generally has a strong track record in fulfilling complex defense contracts. Their experience with various aircraft systems and specialized equipment suggests a high likelihood of successful contract performance, though specific contract performance reviews would provide more granular detail.
Are there any identified risks associated with this contract beyond standard performance issues?
Beyond standard performance risks, potential concerns could include the long-term availability of specialized parts or technical data if the equipment is aging or unique. Dependence on a single, highly specialized contractor like Boeing for critical maintenance could also pose a risk if their capacity or willingness to perform diminishes. Furthermore, the evolving nature of military technology might require contract modifications or adjustments to keep pace, introducing potential scope creep or cost increases if not managed carefully.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MAINT/REPAIR SHOP EQPT
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
Address: 626 ANCHORS ST NW, FORT WALTON BEACH, FL, 01
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F3365798D0002
IDV Type: IDC
Timeline
Start Date: 2004-04-22
Current End Date: 2009-06-26
Potential End Date: 2009-06-26 00:00:00
Last Modified: 2014-07-16
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