Boeing awarded $39.5M for B-52 engineering services, with contract performance extending through February 2026

Contract Overview

Contract Amount: $39,551,033 ($39.6M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2019-12-18

End Date: 2026-02-26

Contract Duration: 2,262 days

Daily Burn Rate: $17.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: B-1 B-52 ENGINEERING SERVICES (BBES)

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $39.6 million to THE BOEING COMPANY for work described as: B-1 B-52 ENGINEERING SERVICES (BBES) Key points: 1. The contract's cost-plus-fixed-fee structure allows for flexibility but requires careful monitoring of expenditures. 2. As a sole-source award, the absence of competition may limit price negotiation advantages. 3. The extended duration suggests a long-term need for specialized B-52 sustainment expertise. 4. Performance is rated 'OK', indicating satisfactory execution to date. 5. The contract is positioned within the broader defense aerospace sector, focusing on legacy aircraft sustainment.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging due to its specialized nature and sole-source award. The cost-plus-fixed-fee (CPFF) pricing structure means costs are reimbursed plus a fixed fee, which can lead to higher overall costs compared to fixed-price contracts if not managed diligently. Without competitive bids, it's difficult to ascertain if the pricing reflects optimal market value. However, the fixed fee component provides some cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, The Boeing Company, was solicited. This approach is typically used when a specific capability or product is only available from a single source, or in cases of urgent need. The lack of competition means that the government did not benefit from a range of proposals and price points that could have driven down costs through a competitive bidding process.

Taxpayer Impact: Taxpayers may not have received the most cost-effective solution due to the absence of competitive pressure to lower prices.

Public Impact

The U.S. Air Force benefits from continued engineering support for the B-52 bomber fleet. Essential services include sustainment, modernization, and lifecycle management of the B-52 aircraft. The geographic impact is primarily centered around the contractor's facilities, likely in Oklahoma. Workforce implications include the retention of specialized aerospace engineering talent focused on legacy platforms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing advantages.
Cost-plus-fixed-fee structure requires diligent oversight to manage potential cost overruns.
Long-term reliance on a single contractor for critical sustainment services.

Positive Signals

Boeing possesses unique expertise for B-52 engineering.
Contract performance is currently rated as satisfactory ('OK').
The fixed fee provides a degree of cost predictability within the CPFF structure.

Sector Analysis

This contract falls within the Defense Aerospace sector, specifically focusing on the sustainment and engineering of legacy aircraft. The B-52 bomber is a critical, long-serving asset for the U.S. Air Force. Spending in this niche area is characterized by long-term contracts with a limited number of highly specialized contractors, often the original equipment manufacturers, due to the unique knowledge and tooling required. Comparable spending benchmarks are difficult to establish due to the bespoke nature of such engineering services.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there explicit information regarding subcontracting plans for small businesses. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless Boeing actively engages small businesses for specialized support services not covered by this prime contract.

Oversight & Accountability

Oversight for this contract is managed by the Department of the Air Force. Given the cost-plus-fixed-fee structure, robust financial oversight and performance monitoring are crucial to ensure value for money. Transparency is facilitated through contract reporting mechanisms. While specific Inspector General (IG) jurisdiction is not detailed, the DoD IG typically has oversight over defense contracts to investigate fraud, waste, and abuse.

Related Government Programs

B-52 Bomber Sustainment Programs
Air Force Aircraft Engineering Services
Legacy Aircraft Modernization Contracts
Defense Contractor Support Services

Risk Flags

Sole-source award
Cost-plus-fixed-fee pricing
Long-term contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.6 million to THE BOEING COMPANY. B-1 B-52 ENGINEERING SERVICES (BBES)

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 $39.6 million.

What is the period of performance?

Start: 2019-12-18. End: 2026-02-26.

What is Boeing's track record with B-52 engineering and sustainment contracts?

The Boeing Company has a long-standing relationship with the U.S. Air Force and has been the prime contractor for various aspects of B-52 sustainment and modernization for decades. Their historical involvement includes significant engineering, modification, and support services for the B-52 fleet. This deep institutional knowledge and established infrastructure position them as a key partner for ongoing B-52 programs. Performance ratings on previous and current contracts, such as the 'OK' status on this BBES contract, generally indicate satisfactory execution, though specific details on past issues or exceptional performance would require a deeper dive into contract performance reports and historical data.

How does the cost-plus-fixed-fee (CPFF) pricing structure compare to other contract types for similar services?

The Cost-Plus-Fixed-Fee (CPFF) structure reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. This contrasts with fixed-price contracts, where the price is set regardless of actual costs, offering greater cost certainty to the government but shifting risk to the contractor. CPFF is often used when the scope of work is not well-defined or involves significant uncertainty, allowing for flexibility. However, it can incentivize cost growth as the contractor is guaranteed their fee regardless of efficiency. For specialized engineering services like B-52 sustainment, CPFF can be appropriate given the complexity and potential for unforeseen technical challenges, but it necessitates stringent government oversight to control costs and ensure value.

What are the primary risks associated with a sole-source award for critical defense sustainment?

The primary risk of a sole-source award for critical defense sustainment is the lack of competitive pressure, which can lead to higher prices and potentially less innovation compared to a competed contract. Without multiple bidders, the government has limited leverage to negotiate the best possible price and terms. There's also a risk of vendor lock-in, where the government becomes overly dependent on a single provider, potentially hindering future flexibility or the adoption of alternative solutions. Furthermore, a sole-source award might reduce the incentive for the contractor to be highly efficient or to proactively seek cost-saving measures, as their profit is fixed regardless of cost efficiency.

What does the 'OK' performance rating signify in the context of this contract?

An 'OK' performance rating, often categorized as 'Satisfactory' in federal contracting, signifies that the contractor, The Boeing Company, is meeting the minimum requirements and expectations outlined in the contract. This rating suggests that the work is being performed adequately, and there are no significant deficiencies or major issues that would warrant a lower rating (e.g., 'Marginal' or 'Unsatisfactory'). However, 'OK' does not imply exceptional performance or exceeding expectations. It indicates that the contractor is fulfilling their obligations in a generally acceptable manner, and the government is receiving the expected services, albeit without notable outstanding achievements.

How does this contract's duration and value compare to historical B-52 engineering support spending?

This contract, valued at approximately $39.5 million and running from December 2019 to February 2026 (over 6 years), represents a significant but likely typical investment for specialized, long-term engineering support of a major legacy platform like the B-52. Historical spending on B-52 sustainment has been substantial over the decades, encompassing numerous contracts for upgrades, maintenance, and engineering services. While this specific contract's value is substantial for its defined scope, it should be viewed within the context of the overall lifecycle costs of maintaining the B-52 fleet, which can run into billions of dollars over its extended service life. Without access to detailed historical spending databases for B-52 specific engineering services, a precise comparison is difficult, but this award aligns with the ongoing need for dedicated support for this aging but vital aircraft.

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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,089,939

Exercised Options: $44,089,939

Current Obligation: $39,551,033

Actual Outlays: $2,080,465

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810719D0001

IDV Type: IDC

Timeline