Boeing Awarded $1.16B VC-25 Contractor Logistics Support, No Competition
Contract Overview
Contract Amount: $1,159,850,849 ($1.2B)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2015-12-01
End Date: 2029-11-30
Contract Duration: 5,113 days
Daily Burn Rate: $226.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: IGF::OT::IGF VC-25 CONTRACTOR LOGISTICS SUPPORT.
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $1.16 billion to THE BOEING COMPANY for work described as: IGF::OT::IGF VC-25 CONTRACTOR LOGISTICS SUPPORT. Key points: 1. Significant contract value for essential aircraft support. 2. Sole-source award to Boeing raises competition concerns. 3. Long duration (2015-2029) requires ongoing oversight. 4. Sector: Defense, specifically aircraft parts manufacturing.
Value Assessment
Rating: questionable
The contract value of $1.16 billion over its period is substantial. Without competitive bidding, it's difficult to assess if this represents fair market value compared to similar logistics support contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition may result in inflated costs, impacting taxpayer value for essential defense logistics.
Public Impact
Ensures continued operational readiness for critical VC-25 aircraft. Potential for higher costs due to lack of competitive pressure. Long-term commitment impacts budget planning and flexibility. Relies on a single contractor for specialized support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Sole-source award
Positive Signals
- Ensures critical asset support
- Established contractor relationship
Sector Analysis
This contract falls within the Defense sector, specifically supporting aircraft parts and auxiliary equipment manufacturing. The $1.16 billion value is significant for this niche, especially given its sole-source nature.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (sb: false). There is no indication of subcontracting opportunities for small businesses within this sole-source agreement.
Oversight & Accountability
The long duration and sole-source nature of this contract necessitate robust oversight from the Defense Contract Management Agency to ensure performance and cost control, despite the lack of initial competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Long contract duration increases long-term cost risk.
- Lack of small business participation.
- Potential for vendor lock-in.
- Dependence on a single supplier for critical support.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ok, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.16 billion to THE BOEING COMPANY. IGF::OT::IGF VC-25 CONTRACTOR LOGISTICS SUPPORT.
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 $1.16 billion.
What is the period of performance?
Start: 2015-12-01. End: 2029-11-30.
What justification was provided for the sole-source award, and has it been re-evaluated?
The justification for the sole-source award is not detailed in the provided data. Typically, sole-source contracts are justified by factors like unique capabilities, urgent needs, or lack of viable alternatives. Re-evaluation is crucial to ensure continued necessity and explore potential competition in future contract modifications or renewals.
How is performance being monitored to ensure value despite the lack of competition?
Performance is monitored through standard contract management processes by the Defense Contract Management Agency. This includes tracking delivery schedules, quality standards, and adherence to contract terms. However, without competitive benchmarks, assessing true value for money is challenging, making rigorous performance metrics and cost analysis essential.
What is the potential impact on future aircraft modernization if this contractor relationship is not competitive?
A non-competitive long-term relationship could stifle innovation and lead to higher costs for future aircraft modernization efforts. If Boeing faces no competitive pressure, there may be less incentive to develop cost-saving technologies or offer competitive pricing for upgrades, potentially increasing the overall lifecycle cost of the VC-25 fleet.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 6001 S AIR DEPOT BLVD, OKLAHOMA CITY, OK, 73135
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,791,615,309
Exercised Options: $1,159,895,682
Current Obligation: $1,159,850,849
Actual Outlays: $27,242,604
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-12-01
Current End Date: 2029-11-30
Potential End Date: 2029-11-30 00:00:00
Last Modified: 2026-01-14
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