DoD awards $58M to Boeing for B-52 Engineering Services, extending through 2026
Contract Overview
Contract Amount: $58,073,026 ($58.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-12-20
End Date: 2026-12-31
Contract Duration: 2,933 days
Daily Burn Rate: $19.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: 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 $58.1 million to THE BOEING COMPANY for work described as: B-52 ENGINEERING SERVICES Key points: 1. Significant contract value for specialized aircraft sustainment. 2. Sole-source award to incumbent, raising competition concerns. 3. Long-term contract duration may pose cost escalation risks. 4. Focus on critical defense asset maintenance.
Value Assessment
Rating: fair
The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar sole-source engineering support contracts for legacy aircraft is difficult without more data.
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 for essential B-52 engineering services means taxpayers may be paying a premium for these services.
Public Impact
Ensures continued operational readiness of the B-52 bomber fleet. Supports critical maintenance and engineering expertise for a strategic asset. Potential for cost savings through performance incentives, but risks remain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
Positive Signals
- Ensures critical platform sustainment
- Performance incentives included
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft manufacturing and sustainment. Spending in this area is often characterized by long-term contracts and specialized, sole-source providers due to the complexity and proprietary nature of defense systems.
Small Business Impact
There is no indication of small business participation in this specific contract award. Given the sole-source nature and the prime contractor, opportunities for small businesses are likely limited to subcontracting roles, if any.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective performance. The Air Force should monitor cost growth and contractor performance diligently to mitigate risks associated with non-competitive awards.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost-plus contract type carries inherent risk of cost overruns.
- Long contract duration increases exposure to market volatility and scope creep.
- 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 $58.1 million to THE BOEING COMPANY. 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 $58.1 million.
What is the period of performance?
Start: 2018-12-20. End: 2026-12-31.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary data, or the need for continuity of essential services for a specific platform. Agencies must document why full and open competition is not feasible. Without this documentation, it's difficult to assess if alternative strategies were explored or if this was the most cost-effective approach for the government.
How are the incentive fee structures designed to control costs and ensure performance for the B-52 engineering services?
The Cost Plus Incentive Fee (CPIF) structure aims to align contractor and government interests by providing bonuses for exceeding targets (e.g., cost savings, performance metrics) and penalties for falling short. The effectiveness depends on clearly defined targets, robust performance metrics, and diligent government oversight to ensure the incentives drive desired outcomes without encouraging unnecessary risk-taking or compromising quality.
What is the long-term strategy for B-52 sustainment, and how does this contract fit into that plan?
This contract covers engineering services through 2026, indicating a commitment to the B-52's continued operational life. Understanding the broader sustainment strategy, including potential upgrades, fleet size, and future platform replacements, is crucial. This contract appears to be a necessary component for maintaining the current fleet's readiness during its extended service period.
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 INCENTIVE FEE (V)
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: $58,073,026
Exercised Options: $58,073,026
Current Obligation: $58,073,026
Actual Outlays: $4,671,080
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $4,136,379
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862810D1000
IDV Type: IDC
Timeline
Start Date: 2018-12-20
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-01-09
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