DoD's $35M Air Crew Training Contract Awarded to Boeing Amidst Engineering Services Spending

Contract Overview

Contract Amount: $35,011,049 ($35.0M)

Contractor: Boeing Aerospace Operations, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-07-01

End Date: 2012-03-31

Contract Duration: 2,100 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AIR CREW TRAINING

Plain-Language Summary

Department of Defense obligated $35.0 million to BOEING AEROSPACE OPERATIONS, INC. for work described as: AIR CREW TRAINING Key points: 1. Boeing secured a significant contract for air crew training, highlighting its role in defense aviation services. 2. The $35 million contract falls within the Engineering Services sector, indicating specialized technical support. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. The contract duration of 2100 days (approx. 5.75 years) indicates a long-term need for these services.

Value Assessment

Rating: good

The contract value of $35 million over approximately 5.75 years suggests a substantial investment in air crew training. Benchmarking against similar large-scale training contracts would be necessary for a precise assessment, but the firm-fixed-price structure aims to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery, allowing multiple vendors to bid. This method generally leads to more competitive pricing compared to sole-source or limited solicitations.

Taxpayer Impact: Taxpayer funds are utilized for essential defense training. The competitive nature of the award aims to ensure efficient use of these funds.

Public Impact

Ensures readiness of Air Force personnel through specialized training. Supports advanced aviation technologies and operational capabilities. Contributes to the overall effectiveness and safety of air operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration may outpace technological advancements.
Potential for cost overruns if scope creep occurs despite FFP.

Positive Signals

Firm Fixed Price contract structure.
Full and Open Competition utilized.
Long-term commitment to critical training needs.

Sector Analysis

This contract falls under Engineering Services, a broad category often encompassing specialized technical support and development. The $35 million value over nearly six years is significant for this sector, particularly within the defense industry's focus on maintaining high operational readiness.

Small Business Impact

The data indicates this contract was awarded to Boeing Aerospace Operations, Inc. There is no explicit information provided regarding small business participation or subcontracting goals within this specific award.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, a component of the Department of Defense. Standard DoD oversight mechanisms would apply to ensure performance and financial accountability throughout the contract's lifecycle.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Contract duration may exceed the pace of technological advancement.
Potential for scope creep impacting cost and schedule.
Reliance on a single large contractor for critical training.
Lack of explicit small business participation data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.0 million to BOEING AEROSPACE OPERATIONS, INC.. AIR CREW TRAINING

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 $35.0 million.

What is the period of performance?

Start: 2006-07-01. End: 2012-03-31.

What specific training outcomes or performance metrics are tied to this contract to ensure value for money?

The contract likely includes specific performance work statements (PWS) and delivery requirements that define the expected training outcomes and metrics. These could range from pilot proficiency levels to simulator hours and mission-readiness assessments. The firm-fixed-price structure incentivizes the contractor to meet these requirements efficiently, but ongoing monitoring by the Air Force is crucial to verify that the intended value and effectiveness are achieved.

What are the potential risks associated with a long-term (2100 days) training contract, especially concerning evolving military needs?

A significant risk with long-term contracts is that the training content or technology may become outdated before the contract ends, potentially diminishing its effectiveness. Evolving military strategies or new aircraft could necessitate changes not originally envisioned. Mitigating this requires robust contract modification clauses and continuous dialogue between the Air Force and Boeing to adapt the training program as needed, ensuring it remains relevant and aligned with current operational requirements.

How does this contract contribute to the overall readiness and capability of the Air Force aircrews?

This contract directly addresses the critical need for continuous and advanced training for Air Force aircrews. By providing specialized training, likely including simulator time and instruction on complex systems, it ensures pilots and other crew members maintain proficiency and adapt to new operational demands. This investment is fundamental to maintaining the high level of readiness and combat effectiveness expected of Air Force personnel.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Boeing Company (UEI: 009256819)

Address: 3373 BRECKINRIDGE BLVD, RICHARDSON, TX, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $36,648,171

Exercised Options: $35,016,230

Current Obligation: $35,011,049

Parent Contract

Parent Award PIID: GS23F0183K

IDV Type: FSS

Timeline