DoD's $53.9M flight training contract with Boeing Aerospace Operations, Inc. awarded in 2006

Contract Overview

Contract Amount: $53,920,042 ($53.9M)

Contractor: Boeing Aerospace Operations, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-06-23

End Date: 2012-02-29

Contract Duration: 2,077 days

Daily Burn Rate: $26.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Place of Performance

Location: GOLDSBORO, WAYNE County, NORTH CAROLINA, 27530

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $53.9 million to BOEING AEROSPACE OPERATIONS, INC. for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract's duration of 2077 days (approx. 5.7 years) indicates a significant, long-term service requirement. 3. Firm Fixed Price contract type helps mitigate cost overrun risks for the government. 4. The contract was awarded to a single vendor, Boeing Aerospace Operations, Inc. 5. The North Carolina location of the award may have implications for local economic impact and workforce. 6. The absence of small business set-aside suggests the primary contractor is not a small business, and subcontracting opportunities for small businesses are not explicitly mandated by this award.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The total award amount of $53.9 million over nearly six years suggests an average annual value of approximately $9.4 million. This figure needs to be assessed against the scope and complexity of the flight training services provided. Without detailed service delivery information, it's difficult to definitively assess value-for-money or compare pricing to market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. The data shows 3 bids were received. A competitive process like this generally aims to foster price discovery and ensure the government receives the best value. However, the number of bidders (3) is moderate, and further analysis would be needed to determine if this level of competition was sufficient to drive down costs effectively.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by encouraging multiple vendors to offer their best pricing and services, potentially leading to cost savings compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are likely military personnel undergoing flight training, enhancing their operational readiness. The services delivered are flight training, crucial for maintaining the skills of aircrews. The geographic impact is centered in North Carolina, where the contract was awarded. Workforce implications may include employment opportunities for instructors, support staff, and related personnel in the North Carolina region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (3 bidders) may not have fully optimized price discovery.
Lack of explicit small business set-aside could limit subcontracting opportunities for smaller firms.
Firm Fixed Price contracts can sometimes lead to scope creep if not managed carefully, though they generally protect against cost overruns.

Positive Signals

Awarded under full and open competition, maximizing potential vendor pool.
Firm Fixed Price contract type provides cost certainty for the government.
Long contract duration suggests a stable, ongoing need for these critical training services.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on specialized training. The market for defense training services is substantial, driven by the continuous need for military readiness and technological advancement. Contracts like this are essential for maintaining the operational capabilities of armed forces. Benchmarking against similar flight training contracts would provide further context on pricing and service delivery standards within this niche.

Small Business Impact

The contract data indicates 'SB: false,' meaning it was not awarded as a small business set-aside. This suggests the primary contractor, Boeing Aerospace Operations, Inc., is not a small business. While not explicitly set aside for small businesses, there may still be opportunities for small businesses to participate as subcontractors. However, the absence of a specific set-aside or subcontracting plan requirement in the provided data means the direct impact on the small business ecosystem is not guaranteed and would require further investigation into subcontracting agreements.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS, where basic award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Air Force Flight Training Programs
Defense Contractor Services
Aerospace Operations Support
Military Pilot Training
Defense Education and Training

Risk Flags

Moderate number of bidders (3) in a full and open competition.
Long contract duration may limit future competitive opportunities.
Lack of explicit small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.9 million to BOEING AEROSPACE OPERATIONS, INC.. See the official description on USAspending.

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 $53.9 million.

What is the period of performance?

Start: 2006-06-23. End: 2012-02-29.

What is the historical spending pattern for flight training services by the Department of the Air Force?

Analyzing historical spending patterns for flight training by the Department of the Air Force reveals a consistent and significant investment in maintaining aircrew proficiency. Over the past decade, the Air Force has allocated billions of dollars towards various flight training contracts, encompassing initial pilot training, advanced tactical training, and simulator maintenance. Spending fluctuates based on geopolitical demands, new aircraft procurements, and evolving training doctrines. For instance, periods of increased operational tempo or the introduction of new fighter platforms often correlate with surges in training-related contract awards. The average annual spending on flight training can range from hundreds of millions to over a billion dollars, depending on the specific fiscal year and strategic priorities. This contract, valued at $53.9 million over its duration, represents a component of this larger, ongoing investment in airpower readiness.

How does the per-unit cost of this contract compare to similar flight training contracts awarded by other military branches?

Directly comparing the per-unit cost of this $53.9 million contract with Boeing Aerospace Operations, Inc. to similar flight training contracts across military branches is challenging without granular data on the specific training hours, aircraft types, instructor ratios, and support services included. Per-unit costs can vary significantly based on these factors. For example, training for advanced fighter pilots is inherently more expensive than basic trainer aircraft operation. However, if we consider the average annual value of approximately $9.4 million, it can be benchmarked against other large-scale training initiatives. Contracts for rotary-wing training or bomber pilot qualification might have different cost structures. A comprehensive comparison would require access to detailed statements of work and pricing breakdowns for multiple comparable contracts to identify outliers or establish a reliable market rate.

What is Boeing Aerospace Operations, Inc.'s track record with Department of Defense flight training contracts?

Boeing Aerospace Operations, Inc., as a subsidiary or division of the larger Boeing Company, has a substantial and long-standing track record in supporting Department of Defense aviation programs, including flight training. The Boeing Company has been a prime contractor for numerous military aircraft platforms, and associated training services are often bundled or contracted separately. Their experience spans decades, covering a wide array of training needs from initial pilot qualification to advanced mission simulation and maintenance training. Past performance reviews and contract histories within the DoD's Federal Procurement Data System (FPDS) would provide specific details on their performance, including on-time delivery, quality of services, and any past performance issues or commendations related to flight training. This particular contract represents one engagement within their broader portfolio of defense services.

What are the key performance indicators (KPIs) typically associated with such flight training contracts?

Key Performance Indicators (KPIs) for flight training contracts are crucial for measuring the effectiveness and efficiency of the training provided. Common KPIs include student graduation rates, student performance metrics (e.g., scores on flight evaluations, simulator assessments), instructor-to-student ratios, aircraft/simulator availability rates, training hours delivered per student, and adherence to training schedules. For this contract, the Department of the Air Force would likely have established specific metrics to ensure that Boeing Aerospace Operations, Inc. is meeting the required standards for pilot proficiency and mission readiness. Success would be measured by the ability of trainees to meet established competency levels within the allocated training duration and budget, ultimately contributing to the overall operational capability of the Air Force.

What is the potential risk associated with a single awardee (Boeing) for a long-term flight training requirement?

The primary risk associated with a single awardee, such as Boeing Aerospace Operations, Inc., for a long-term flight training requirement is the potential for reduced competition and vendor complacency over time. While the initial award was competitive, the duration of this contract (nearly six years) means the government is reliant on one provider for an extended period. This can lead to potential price increases upon subsequent contract renewals if competition is not re-established, or a decline in service quality if the contractor faces no pressure to innovate or improve. Furthermore, if the contractor experiences significant financial difficulties or operational issues, it could disrupt critical training pipelines, impacting military readiness. Mitigating these risks often involves robust contract management, performance monitoring, and planning for future competitive procurements well in advance.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Flight Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

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: 8120 MID AMERICA BLVD STE, OKLAHOMA CITY, OK, 90

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $52,258,254

Exercised Options: $47,354,265

Current Obligation: $53,920,042

Contract Characteristics

Cost or Pricing Data: NO

Timeline