Air Force awards $237M B-52 Engineering Services contract to Boeing, raising competition concerns
Contract Overview
Contract Amount: $237,411,036 ($237.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-07-01
End Date: 2026-03-31
Contract Duration: 2,099 days
Daily Burn Rate: $113.1K/day
Competition Type: NOT COMPETED
Pricing Type: TIME AND MATERIALS
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 $237.4 million to THE BOEING COMPANY for work described as: B-1 B-52 ENGINEERING SERVICES (BBES) Key points: 1. Boeing secures a significant contract for B-52 engineering services, highlighting its established role. 2. The contract's Time and Materials (T&M) pricing structure warrants scrutiny for cost control. 3. Lack of competition raises questions about potential overspending and limited market engagement. 4. The duration of the contract extends over several years, impacting long-term budget planning.
Value Assessment
Rating: questionable
The contract is awarded on a Time and Materials basis, which can lead to higher costs if not closely managed. Benchmarking against similar engineering services contracts is difficult without specific task breakdowns, but the lack of a fixed price or ceiling raises concerns.
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 compared to a competitive bidding process.
Taxpayer Impact: The absence of competition may result in the government paying more than necessary for these engineering services, impacting the efficient use of taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The long-term nature of the contract impacts budget predictability for the Air Force. Reliance on a single contractor for critical engineering services could pose a risk if performance issues arise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Time and Materials pricing
- Long contract duration
Positive Signals
- Established contractor with known capabilities
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting aircraft manufacturing and sustainment. Spending benchmarks for engineering services can vary widely based on complexity, but competitive procurement typically drives better value.
Small Business Impact
The data does not indicate any specific provisions or considerations for small business participation in this contract. As a sole-source award to a large prime contractor, opportunities for small businesses may be limited unless subcontracting plans are mandated and effectively implemented.
Oversight & Accountability
The Time and Materials pricing structure necessitates robust oversight from the Department of the Air Force to ensure costs are reasonable and allocable. Monitoring contractor performance and expenditures will be crucial for accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Time and Materials pricing structure
- Long contract duration (over 5 years)
- Potential for cost overruns
- Limited visibility into specific task costs
Tags
aircraft-manufacturing, department-of-defense, ok, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $237.4 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 $237.4 million.
What is the period of performance?
Start: 2020-07-01. End: 2026-03-31.
What is the estimated cost savings if this contract had been competitively procured?
Quantifying exact savings without a competitive bidding process is speculative. However, historical data suggests competitive procurements can yield savings of 10-30% compared to sole-source awards, especially for complex services. The lack of competition here likely means the government is not benefiting from market-driven price reductions.
What are the specific risks associated with a sole-source, Time and Materials contract for critical aircraft engineering services?
The primary risks include cost overruns due to the absence of a fixed price, potential for scope creep, and reduced incentive for the contractor to innovate or improve efficiency. The government bears the burden of proving costs are reasonable, which requires significant oversight effort.
How effectively can the Air Force ensure value for money and contractor performance under this contract structure?
Effective value realization depends heavily on stringent government oversight, detailed cost tracking, and clear performance metrics. The Air Force must actively manage the T&M elements, scrutinize invoices, and ensure the contractor meets all technical and delivery requirements to mitigate risks.
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: TIME AND MATERIALS (Y)
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: $237,411,036
Exercised Options: $237,411,036
Current Obligation: $237,411,036
Actual Outlays: $7,539,547
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $34,838
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
Start Date: 2020-07-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-08-12
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