DoD Awards $194M for CLS Aircraft Support to Boeing, Extending Contract to 2006
Contract Overview
Contract Amount: $39,893,462 ($39.9M)
Contractor: Boeing Aerospace Operations, I
Awarding Agency: Department of Defense
Start Date: 1996-11-05
End Date: 2006-12-31
Contract Duration: 3,708 days
Daily Burn Rate: $10.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 199712!5700!0228!GD90 !OC-ALC/LKD (CLS AIRCRAFT) !F3460196C0041 !A!*!P00020 !19961105!19960930!194293544!085188316!009256819!N!0LRY9!BOEING AEROSPACE OPERATIONS IN!2601 LIBERTY PKWY !OKLAHOMA CITY !OK!73110!48350!109!40!MIDWEST CITY !OKLAHOMA !OKLAHOMA !0001!+000004395643!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !A1A!AIRFRAMES AND SPARES !3ATS!T-43 !3728!3!*!*!C!B!A!*!A !N!J!2!002!B!* !Z!N!Z!* !* !Y!C!*!A!A!A!A!A!*!* !*!N!A!B!N!*!*!*!*!*!
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $39.9 million to BOEING AEROSPACE OPERATIONS, I for work described as: 199712!5700!0228!GD90 !OC-ALC/LKD (CLS AIRCRAFT) !F3460196C0041 !A!*!P00020 !19961105!19960930!194293544!085188316!009256819!N!0LRY9!BOEING AEROSPACE OPERATIONS IN!2601 LIBERTY PKWY !OKLAHOMA CITY !OK!73110!48350!109!40!MIDWEST CITY !OKLAHO… Key points: 1. The contract, valued at $194.3 million, was awarded to Boeing Aerospace Operations. 2. This award represents a significant portion of spending within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The duration of the contract is substantial, spanning over 10 years, indicating a long-term need for these services.
Value Assessment
Rating: good
The contract value of $194.3 million for program management and support services for CLS aircraft appears reasonable given the extensive 10-year duration. Benchmarking against similar long-term aerospace support contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically leads to more competitive pricing and better value for the government. The price discovery mechanism was likely robust due to multiple bidders.
Taxpayer Impact: The competitive award process is expected to have resulted in a fair price, maximizing taxpayer value for essential aircraft support services.
Public Impact
Ensures continued operational readiness for CLS aircraft through sustained support services. Supports jobs within the aerospace sector, particularly in Oklahoma where Boeing Aerospace Operations is located. The long contract duration provides stability for both the government's operational needs and the contractor's planning.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or price increases if not managed carefully.
- Reliance on a single contractor for extended support may reduce future competitive opportunities.
Positive Signals
- Awarded under full and open competition, indicating a competitive process.
- Firm Fixed Price contract type helps control costs.
- Long-term contract provides stability and predictability.
Sector Analysis
This contract falls within the 'Defense' sector, specifically related to aircraft maintenance and support services. Spending in this area is critical for maintaining military readiness and can be substantial, with benchmarks varying based on aircraft type and service scope.
Small Business Impact
While the primary award went to a large business (Boeing), the contract may indirectly benefit small businesses through subcontracting opportunities. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract's long duration necessitates robust oversight from the Defense Contract Management Agency (DCMA) to ensure performance, cost control, and adherence to terms. Regular performance reviews and audits are crucial.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration
- Potential for cost growth over time
- Reliance on a single large contractor
- Need for continuous oversight
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ok, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.9 million to BOEING AEROSPACE OPERATIONS, I. 199712!5700!0228!GD90 !OC-ALC/LKD (CLS AIRCRAFT) !F3460196C0041 !A!*!P00020 !19961105!19960930!194293544!085188316!009256819!N!0LRY9!BOEING AEROSPACE OPERATIONS IN!2601 LIBERTY PKWY !OKLAHOMA CITY !OK!73110!48350!109!40!MIDWEST CITY !OKLAHOMA !OKLAHOMA !0001!+000004395643!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !A1A!AIRFRAMES AND SPARES !3ATS!T-43 !3728!3!*!*!C!B!A!*!A !N!J!2!0
Who is the contractor on this award?
The obligated recipient is BOEING AEROSPACE OPERATIONS, I.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $39.9 million.
What is the period of performance?
Start: 1996-11-05. End: 2006-12-31.
What specific program management and support services are included under this contract?
The contract covers program management/support services for CLS aircraft, including airframes and spares. Specific details would typically be outlined in the contract's statement of work, detailing maintenance, logistics, technical support, and potentially upgrades or modifications required to maintain the operational readiness of the specified aircraft fleet.
How does the $194.3 million value compare to similar long-term aircraft support contracts?
Without specific details on the scope of services and aircraft type, a direct comparison is difficult. However, for a decade-long support contract for a significant fleet, $194.3 million (averaging ~$19.4M/year) seems within a reasonable range, especially considering the complexity of program management and parts provisioning in the defense aerospace industry.
What are the potential risks associated with a sole-source award for such a long duration?
Although this contract was awarded under full and open competition, the long duration (over 10 years) could still present risks. These include potential vendor lock-in, reduced incentive for innovation over time, and the possibility of cost overruns if contract modifications are frequent or if market conditions change significantly. Robust oversight is key to mitigating these.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2601 LIBERTY PKWY, OKLAHOMA CITY, OK, 73110
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 1996-11-05
Current End Date: 2006-12-31
Potential End Date: 2006-12-31 00:00:00
Last Modified: 2016-12-12
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