DoD's B-52 Engineering Sustainment Program Awarded $32M to Boeing, Raising Concerns Over Competition
Contract Overview
Contract Amount: $32,024,233 ($32.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2017-05-31
End Date: 2019-02-28
Contract Duration: 638 days
Daily Burn Rate: $50.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF B-52 ENGINEERING SUSTAINMENT PROGRAM
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $32.0 million to THE BOEING COMPANY for work described as: IGF::OT::IGF B-52 ENGINEERING SUSTAINMENT PROGRAM Key points: 1. Significant contract value awarded to a single large business. 2. Lack of competition raises questions about price discovery and potential overspending. 3. Long-term sustainment of a critical asset like the B-52 is vital but requires careful oversight. 4. The 'Aircraft Manufacturing' sector often involves complex, specialized services.
Value Assessment
Rating: questionable
The contract value of $32M for engineering sustainment is difficult to benchmark without specific details on the services provided. However, the lack of competition suggests potential for inflated pricing compared to a competitive environment.
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 was no market pressure to offer the best price.
Taxpayer Impact: The absence of competition for this significant contract may result in taxpayers paying more than necessary for B-52 engineering sustainment services.
Public Impact
Taxpayers may be overpaying for essential aircraft sustainment due to lack of competition. The long-term operational readiness of the B-52 fleet could be impacted by the quality and cost of this sustainment program. Transparency in sole-source contract justifications is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for cost overruns
Positive Signals
- Sustains critical B-52 bomber fleet
- Awarded to incumbent manufacturer
Sector Analysis
The aircraft manufacturing sector, particularly for legacy platforms like the B-52, often involves specialized engineering and sustainment services. Spending benchmarks are highly variable due to the unique nature of such contracts.
Small Business Impact
This contract was awarded to The Boeing Company, a large business. There is no indication that small businesses were involved in this specific award, which is common for prime contracts of this nature.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Department of Defense and potentially the Government Accountability Office (GAO) to ensure fair pricing and effective service delivery.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency on justification for sole-source award
- Long-term reliance on a single contractor for critical sustainment
Tags
aircraft-manufacturing, department-of-defense, ok, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.0 million to THE BOEING COMPANY. IGF::OT::IGF B-52 ENGINEERING SUSTAINMENT PROGRAM
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
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 $32.0 million.
What is the period of performance?
Start: 2017-05-31. End: 2019-02-28.
What specific engineering sustainment services are included in this $32M contract, and how do they align with the B-52's operational needs?
The contract details for specific engineering sustainment services are not provided in the data. However, such services typically encompass technical support, modifications, repairs, and upgrades necessary to maintain the B-52 fleet's airworthiness and operational readiness throughout its extended service life.
What justification was provided for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award is not detailed here. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, often due to unique capabilities, proprietary data, or urgent needs. The Air Force would need to document why competition was not feasible.
How will the Department of Defense ensure cost-effectiveness and value for money given the lack of competitive bidding on this contract?
The DoD can ensure cost-effectiveness through rigorous negotiation, independent cost estimates, and robust contract surveillance. For Cost Plus Fixed Fee contracts, monitoring the fixed fee and the cost base is crucial. Regular performance reviews and benchmarking against similar, albeit potentially different, sustainment contracts can also provide insights.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6001 S AIR DEPOT BLVD, OKLAHOMA CITY, OK, 73135
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,024,233
Exercised Options: $32,024,233
Current Obligation: $32,024,233
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA810709D0001
IDV Type: IDC
Timeline
Start Date: 2017-05-31
Current End Date: 2019-02-28
Potential End Date: 2019-02-28 00:00:00
Last Modified: 2018-09-26
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