Boeing Awarded $37.3M for B-52 Engineering Services by Air Force
Contract Overview
Contract Amount: $37,317,753 ($37.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2017-08-01
End Date: 2020-12-31
Contract Duration: 1,248 days
Daily Burn Rate: $29.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF B-52 ENGINEERING SERVICES
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $37.3 million to THE BOEING COMPANY for work described as: IGF::OT::IGF B-52 ENGINEERING SERVICES Key points: 1. The contract is a sole-source award to The Boeing Company. 2. Significant taxpayer investment in sustainment of aging B-52 fleet. 3. Potential for cost overruns given the Cost Plus Fixed Fee contract type. 4. Focus on aircraft manufacturing sector, specifically for legacy platforms.
Value Assessment
Rating: questionable
The contract value of $37.3 million for engineering services is difficult to assess without specific deliverables. The Cost Plus Fixed Fee structure can lead to costs exceeding initial estimates if not managed tightly.
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 increases costs for the government.
Taxpayer Impact: The absence of competition for essential engineering services for a critical asset like the B-52 raises concerns about the best use of taxpayer funds.
Public Impact
Ensures continued operational readiness of the B-52 bomber fleet. Supports specialized engineering expertise for a unique and aging aircraft. Potential for long-term sustainment contracts for legacy defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type.
- Aging aircraft sustainment can be unpredictable.
- Lack of clear performance metrics in provided data.
Positive Signals
- Maintains critical defense capability.
- Leverages established manufacturer expertise.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on the sustainment and engineering of legacy aircraft. Spending benchmarks for similar sole-source engineering contracts are highly variable and depend on the complexity of the required services.
Small Business Impact
This contract was awarded directly to The Boeing Company and does not indicate any subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective service delivery. Accountability for cost management under the Cost Plus Fixed Fee structure is crucial.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Aging aircraft sustainment
- Lack of competition
- Potential for cost overruns
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 $37.3 million to THE BOEING COMPANY. IGF::OT::IGF B-52 ENGINEERING 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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $37.3 million.
What is the period of performance?
Start: 2017-08-01. End: 2020-12-31.
What specific engineering services are being procured, and how do they contribute to the B-52's operational effectiveness?
The provided data does not detail the specific engineering services. However, for a platform like the B-52, these likely include structural analysis, avionics upgrades, system diagnostics, and maintenance support. These services are critical for ensuring the bomber's continued airworthiness, mission capability, and safety, especially given its age.
What are the risks associated with a sole-source, Cost Plus Fixed Fee contract for aging aircraft engineering?
Sole-source awards limit competitive pressure, potentially leading to higher prices. Cost Plus Fixed Fee contracts shift cost risk to the government, incentivizing the contractor to incur costs to maximize profit, which can lead to budget overruns if not rigorously managed and monitored.
How does this contract contribute to the long-term value and effectiveness of the B-52 fleet?
This contract is essential for maintaining the operational readiness and extending the service life of the B-52 fleet. By providing necessary engineering support, it ensures the aircraft remain capable of fulfilling their strategic deterrence and strike missions, thereby preserving the long-term value of this significant defense asset.
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: $61,470,740
Exercised Options: $61,470,740
Current Obligation: $37,317,753
Actual Outlays: $410,707
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $430,058
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: 2017-08-01
Current End Date: 2020-12-31
Potential End Date: 2020-12-31 00:00:00
Last Modified: 2021-02-19
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