DoD Awards Boeing $98.5M for C-130 Hercules Aircraft Maintenance and Repair
Contract Overview
Contract Amount: $98,509,892 ($98.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2002-06-06
End Date: 2009-09-04
Contract Duration: 2,647 days
Daily Burn Rate: $37.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200209!000035!5700!GU11 !ASC/VXK !F3365798D0002 !A!N! !N!0909 !20020606!20021121!617869912!085188316!009256819!N!BOEING AEROSPACE OPERATIONS IN!BLDG 999 !FORT WALTON BE !FL!32547!24475!091!12!FORT WALTON BEACH !OKALOOSA !FLORIDA !+000003227273!N!N!000000000000!4920!ACFT MAINT & REPAIR SHOP SPECILIZED EQUIP !A1A!AIRFRAMES AND SPARES !3ACD!C-130 HERCULES !336411!E! !5!B!S! ! !B!20021231!B! ! !B! !A!N!U!2!003!B! !A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!
Place of Performance
Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32548
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $98.5 million to THE BOEING COMPANY for work described as: 200209!000035!5700!GU11 !ASC/VXK !F3365798D0002 !A!N! !N!0909 !20020606!20021121!617869912!085188316!009256819!N!BOEING AEROSPACE OPERATIONS IN!BLDG 999 !FORT WALTON BE !FL!32547!24475!091!12!FORT WALTON BEACH !OKALO… Key points: 1. Contract awarded to The Boeing Company for specialized C-130 Hercules equipment maintenance. 2. Significant contract value of $98.5 million over a period of 2647 days. 3. Competition type is 'Full and Open', suggesting a competitive bidding process. 4. Sector is Defense, specifically aircraft maintenance and repair services.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. The total award amount is $98.5M, with a base of $24.5M and $74M in options.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are utilized for this contract, with the ultimate cost dependent on the efficiency of performance and oversight.
Public Impact
Ensures continued operational readiness of C-130 Hercules aircraft, vital for military logistics and transport. Supports jobs within the aerospace and defense sector, particularly at Boeing. Potential for cost efficiencies through competitive bidding, benefiting taxpayer investment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration may present challenges in adapting to evolving needs.
- Potential for scope creep if not tightly managed.
Positive Signals
- Full and open competition should drive competitive pricing.
- Supports critical military aircraft maintenance.
- Award to a major aerospace contractor suggests established capability.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on aircraft maintenance and repair. Spending benchmarks in this area are highly variable based on aircraft type, age, and required services.
Small Business Impact
While the prime contractor is The Boeing Company, opportunities for small businesses may exist as subcontractors for specialized parts or services related to aircraft maintenance.
Oversight & Accountability
Oversight will be crucial given the CPFF contract type and long duration. The Defense Contract Management Agency (DCMA) is the contracting agency, implying established oversight processes.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Potential for limited competition in specialized maintenance.
- Reliance on a single prime contractor.
Tags
aircraft-manufacturing, department-of-defense, fl, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $98.5 million to THE BOEING COMPANY. 200209!000035!5700!GU11 !ASC/VXK !F3365798D0002 !A!N! !N!0909 !20020606!20021121!617869912!085188316!009256819!N!BOEING AEROSPACE OPERATIONS IN!BLDG 999 !FORT WALTON BE !FL!32547!24475!091!12!FORT WALTON BEACH !OKALOOSA !FLORIDA !+000003227273!N!N!000000000000!4920!ACFT MAINT & REPAIR SHOP SPECILIZED EQUIP !A1A!AIRFRAMES AND SPARES !3ACD!C-130 HERCULES !336411!E! !5!B!S! ! !B!20021231!B
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 $98.5 million.
What is the period of performance?
Start: 2002-06-06. End: 2009-09-04.
What is the expected cost efficiency of this CPFF contract given the long duration and specialized nature of the work?
The Cost Plus Fixed Fee structure, while providing flexibility, carries inherent risks of cost escalation. The long duration (2647 days) amplifies this risk. Effective oversight by DCMA, rigorous performance metrics, and clear scope definition will be critical to ensuring cost efficiency and maximizing taxpayer value. Without detailed performance data, it's difficult to benchmark efficiency definitively.
How does the competitive landscape for C-130 maintenance services compare to this 'full and open' award?
The 'full and open' designation suggests a competitive process was employed. However, the specialized nature of C-130 maintenance, particularly for specific configurations or operational requirements, might limit the number of truly capable bidders. Understanding the number of proposals received and the competitive range would provide better insight into the effectiveness of the competition in driving down costs.
What are the key performance indicators (KPIs) used to measure the effectiveness of this contract in maintaining C-130 operational readiness?
Effectiveness is likely measured by metrics such as aircraft availability rates, turnaround times for repairs, quality of work performed (e.g., defect rates), and adherence to maintenance schedules. Specific KPIs would be detailed in the contract's performance work statement. Continuous monitoring of these KPIs by the government is essential to ensure the contractor meets performance expectations and maintains the operational readiness of the C-130 fleet.
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: COST PLUS FIXED FEE (U)
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: 2002-06-06
Current End Date: 2009-09-04
Potential End Date: 2009-09-04 00:00:00
Last Modified: 2014-07-16
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