DoD Awards $371M B-52 Engine Program to Boeing for Rapid Prototyping
Contract Overview
Contract Amount: $371,385,550 ($371.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-03-31
End Date: 2033-05-31
Contract Duration: 4,444 days
Daily Burn Rate: $83.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: Defense
Official Description: B-52 COMMERCIAL ENGINE REPALCEMENT PROGRAM RAPID PROTOTYPING MATERIAL
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $371.4 million to THE BOEING COMPANY for work described as: B-52 COMMERCIAL ENGINE REPALCEMENT PROGRAM RAPID PROTOTYPING MATERIAL Key points: 1. Significant investment in critical aircraft sustainment. 2. Sole-source award to Boeing raises questions about competition. 3. Long contract duration (12 years) warrants close monitoring. 4. Focus on rapid prototyping suggests innovation but requires clear deliverables.
Value Assessment
Rating: questionable
The total award value is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value for the rapid prototyping and potential future production of B-52 engine replacements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a program of this magnitude could result in a higher overall cost to taxpayers than if multiple vendors had vied for the contract.
Public Impact
Ensures continued operational readiness of the B-52 bomber fleet. Potential for technological advancements in aircraft engine design. Impacts the aerospace manufacturing sector and associated supply chains.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Long contract duration increases risk.
- Lack of clear performance metrics for prototyping phase.
Positive Signals
- Addresses critical need for B-52 modernization.
- Potential for innovation through rapid prototyping.
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically focusing on the sustainment and modernization of a key strategic asset. Benchmarks for similar sole-source engine programs are scarce, making direct comparison difficult.
Small Business Impact
There is no indication that small businesses are involved in this specific contract award. Future subcontracting opportunities should be explored to ensure small business participation.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. Given the sole-source nature and long duration, robust oversight will be crucial to ensure program success and cost control.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Long contract duration
- Potential for cost overruns
- Lack of transparency in price negotiation
- Dependency on a single contractor
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 $371.4 million to THE BOEING COMPANY. B-52 COMMERCIAL ENGINE REPALCEMENT PROGRAM RAPID PROTOTYPING MATERIAL
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 $371.4 million.
What is the period of performance?
Start: 2021-03-31. End: 2033-05-31.
What is the justification for the sole-source award to Boeing, and what steps were taken to ensure the best possible price was negotiated?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. For this B-52 engine program, the Air Force likely cited Boeing's existing expertise with the platform and potentially unique access to necessary data or facilities. However, without a competitive process, the negotiation phase becomes critical for price discovery. It's essential that the Air Force employed rigorous negotiation tactics and market research to secure a fair price, even without competing bids.
What are the key performance indicators (KPIs) for the rapid prototyping phase, and how will success be measured to mitigate program risk?
Measuring success in rapid prototyping requires clearly defined, albeit potentially iterative, milestones. Key performance indicators could include the timely delivery of functional prototypes, successful integration testing, adherence to specified performance parameters (e.g., thrust, fuel efficiency), and demonstration of manufacturability. The contract should outline specific deliverables and acceptance criteria for each phase. Regular reviews and clear communication channels between the Air Force and Boeing are vital to identify and mitigate risks early.
How will the long-term sustainment and potential production costs be managed under this contract, given the initial focus on prototyping?
This contract primarily addresses rapid prototyping, with a potential for future production. Managing long-term sustainment and production costs requires careful planning and contract structuring. Options include establishing clear pathways for follow-on production contracts with competitive elements, defining robust sustainment requirements and associated cost controls, and ensuring technology transfer or data rights that allow for future competition or more efficient maintenance. The current contract should lay the groundwork for these future cost-management strategies.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST NO FEE (S)
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: $565,145,294
Exercised Options: $565,145,294
Current Obligation: $371,385,550
Subaward Activity
Number of Subawards: 69
Total Subaward Amount: $268,126,182
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862819D1000
IDV Type: IDC
Timeline
Start Date: 2021-03-31
Current End Date: 2033-05-31
Potential End Date: 2033-05-31 00:00:00
Last Modified: 2025-09-30
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