DoD awards $100M to Boeing for E-4B fleet sustainment, raising concerns about competition
Contract Overview
Contract Amount: $100,035,642 ($100.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2017-12-01
End Date: 2024-12-20
Contract Duration: 2,576 days
Daily Burn Rate: $38.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: Defense
Official Description: SUSTAINMENT SUPPORT FOR THE E-4B FLEET.
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $100.0 million to THE BOEING COMPANY for work described as: SUSTAINMENT SUPPORT FOR THE E-4B FLEET. Key points: 1. Significant contract value for specialized aircraft sustainment. 2. Sole reliance on Boeing for E-4B support presents a potential single point of failure. 3. Lack of competition raises questions about cost-effectiveness and potential overspending. 4. The E-4B fleet's critical national security role amplifies the risks associated with sustainment.
Value Assessment
Rating: questionable
The contract value of $100M for sustainment support is substantial. Without competitive bidding, it's difficult to assess if this price is aligned with market rates for similar specialized aircraft support services.
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 limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition on this large contract likely results in higher costs for taxpayers compared to a competitively awarded contract.
Public Impact
Ensures the operational readiness of the E-4B 'Doomsday Plane', a critical command and control asset. Supports a highly specialized and aging fleet, requiring unique expertise. Potential for cost overruns due to the absence of competitive pressure. National security implications if sustainment is not cost-effective or efficient.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
- Critical national security asset
Positive Signals
- Ensures critical fleet readiness
- Leverages original equipment manufacturer expertise
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on the sustainment of a unique and critical military aircraft. Spending benchmarks for specialized fleet support can vary widely, but large sole-source contracts warrant close scrutiny.
Small Business Impact
This contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of Defense to ensure fair pricing and effective service delivery. Accountability for cost and performance is crucial given the lack of competitive validation.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for cost overruns due to no competition.
- Reliance on a single contractor for critical asset sustainment.
- Lack of transparency in pricing mechanisms.
- Aging fleet may require increasingly expensive support.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ok, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $100.0 million to THE BOEING COMPANY. SUSTAINMENT SUPPORT FOR THE E-4B FLEET.
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 $100.0 million.
What is the period of performance?
Start: 2017-12-01. End: 2024-12-20.
What is the justification for the sole-source award for E-4B sustainment, and what steps are being taken to ensure cost reasonableness?
The justification for a sole-source award typically stems from unique capabilities or proprietary technology held by a single contractor. For the E-4B fleet, Boeing, as the original manufacturer, likely possesses specialized knowledge and tooling. However, robust cost analysis, including detailed audits and benchmarking against similar, albeit not identical, contracts, is essential to ensure taxpayer funds are used efficiently and that the pricing reflects fair value despite the lack of competition.
What are the risks associated with relying solely on Boeing for the sustainment of the E-4B fleet, and how are these risks being mitigated?
The primary risk is the lack of competitive pressure, which can lead to inflated costs and potentially reduced service quality or innovation. Additionally, a single point of failure exists if Boeing faces production issues or financial instability. Mitigation strategies should include stringent contract management, performance metrics, and potentially exploring limited competition for specific components or services in the future to introduce some level of market discipline.
How does the sustainment cost of the E-4B fleet compare to other similarly critical, but perhaps less unique, military aircraft programs?
Direct comparisons are challenging due to the E-4B's unique role and limited fleet size. However, sustainment costs for specialized platforms are generally higher than for more common aircraft. Without competitive data, it's difficult to benchmark definitively. A thorough analysis would involve comparing cost-per-flight-hour, maintenance man-hours, and parts replacement rates against other high-value, low-volume military assets, adjusted for complexity and criticality.
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
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: $100,035,642
Exercised Options: $100,035,642
Current Obligation: $100,035,642
Actual Outlays: $-54,228
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA810616D0002
IDV Type: IDC
Timeline
Start Date: 2017-12-01
Current End Date: 2024-12-20
Potential End Date: 2024-12-20 00:00:00
Last Modified: 2025-11-17
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