Boeing Awarded $41.7M for E-4B Sustaining Services, Lacking Competition
Contract Overview
Contract Amount: $41,745,518 ($41.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2017-12-15
End Date: 2019-11-15
Contract Duration: 700 days
Daily Burn Rate: $59.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: Defense
Official Description: LFTS ENGINEERING ASIGNMENT FOR E-4B SUSTAINING SERVICES.
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $41.7 million to THE BOEING COMPANY for work described as: LFTS ENGINEERING ASIGNMENT FOR E-4B SUSTAINING SERVICES. Key points: 1. Significant contract value for specialized engineering services. 2. Sole-source award to Boeing raises questions about competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Defense sector spending on critical aircraft sustainment.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure for engineering services makes direct price comparison difficult. The awarded amount of $41.7M over two years suggests a substantial investment for sustainment.
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 may not ensure the most cost-effective solution for the government.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for these essential engineering services.
Public Impact
Ensures continued operational readiness of the E-4B fleet. Supports critical national defense infrastructure. Potential for cost overruns due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Cost-plus contract type
Positive Signals
- Essential service for national security
- Experienced contractor
Sector Analysis
This contract falls under engineering services within the defense sector. Spending on aircraft sustainment is crucial for maintaining military readiness, with significant budgets allocated annually.
Small Business Impact
This contract was awarded to a large prime contractor, The Boeing Company, and there is no indication of small business participation in this specific award.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The sole-source nature warrants close scrutiny to ensure fair pricing and performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated costs due to lack of bidding.
- Cost-plus contract type can lead to cost overruns.
- Lack of transparency in pricing justification.
- No clear path for small business involvement.
Tags
engineering-services, department-of-defense, ok, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.7 million to THE BOEING COMPANY. LFTS ENGINEERING ASIGNMENT FOR E-4B SUSTAINING SERVICES.
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 $41.7 million.
What is the period of performance?
Start: 2017-12-15. End: 2019-11-15.
What is the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by the contractor. For the E-4B sustainment, it's likely tied to Boeing's deep knowledge of the aircraft's complex systems and history. However, a thorough review should confirm that no other qualified vendors could provide the necessary services, even with a modified approach, to ensure fair market value.
How is the cost-plus-fixed-fee structure being managed to prevent cost overruns?
Managing a cost-plus-fixed-fee contract requires robust oversight to track all allowable costs and ensure the fixed fee remains appropriate. The government must diligently audit expenditures, verify the necessity of each cost, and ensure performance metrics are met. Regular reviews and clear communication channels with the contractor are essential to identify and mitigate potential cost escalations early.
What is the long-term strategy for E-4B sustainment to encourage future competition?
The long-term strategy should focus on breaking down sustainment requirements into smaller, more competitive packages where possible. This could involve developing clearer technical data packages, fostering a broader base of qualified suppliers, and potentially investing in training for new entrants. Proactive market research and early engagement with industry can help stimulate competition for future sustainment needs.
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: 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: $41,748,462
Exercised Options: $41,748,462
Current Obligation: $41,745,518
Actual Outlays: $1,188,917
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $18,322,699
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810617D0002
IDV Type: IDC
Timeline
Start Date: 2017-12-15
Current End Date: 2019-11-15
Potential End Date: 2019-11-15 00:00:00
Last Modified: 2025-07-31
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