Boeing Awarded $30M for B-1/B-52 Engineering Services by Air Force

Contract Overview

Contract Amount: $29,998,388 ($30.0M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2021-03-01

End Date: 2022-02-28

Contract Duration: 364 days

Daily Burn Rate: $82.4K/day

Competition Type: NOT COMPETED

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: B-1/B52 ENGINEERING SERVICES (BBES)

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $30.0 million to THE BOEING COMPANY for work described as: B-1/B52 ENGINEERING SERVICES (BBES) Key points: 1. Significant contract value of $29.99M awarded to a single large business. 2. Sole-source award raises questions about competition and potential price overruns. 3. Contract duration of 364 days with a Time and Materials pricing structure. 4. Focus on aircraft manufacturing services for critical bomber platforms.

Value Assessment

Rating: questionable

The contract's Time and Materials pricing structure, combined with a sole-source award, makes a direct pricing assessment difficult. Without competitive bids, it's hard to determine if the $29.99M represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The absence of competition in this sole-source award could result in inflated costs, impacting taxpayer funds negatively.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The long-term sustainment of critical bomber aircraft relies on these services. Potential for cost overruns given the Time and Materials contract type.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Time and Materials pricing
Lack of small business participation

Positive Signals

Essential engineering services for critical defense assets

Sector Analysis

This contract falls within the Defense sector, specifically supporting aircraft manufacturing and maintenance for the Air Force. Spending benchmarks for similar engineering services can vary widely based on complexity and duration, but sole-source awards often exceed competitive ones.

Small Business Impact

The data indicates no small business participation in this contract. This suggests an opportunity missed for engaging smaller, specialized firms and potentially achieving cost savings through diverse sourcing.

Oversight & Accountability

Oversight is crucial for sole-source contracts, especially those using Time and Materials. The Air Force should ensure rigorous monitoring of hours and materials to prevent cost creep and ensure the value delivered aligns with the significant expenditure.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award
Time and Materials pricing structure
No small business participation
Potential for cost overruns
Lack of competitive benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.0 million to THE BOEING COMPANY. B-1/B52 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 $30.0 million.

What is the period of performance?

Start: 2021-03-01. End: 2022-02-28.

What specific engineering tasks are covered under this contract, and how were they valued without competition?

The contract covers engineering services for the B-1/B-52 aircraft. Without a competitive process, the valuation likely relied on historical data, internal cost estimates, or negotiation with the sole provider, The Boeing Company. A detailed breakdown of the services and the justification for the negotiated price would be necessary to assess value.

What are the primary risks associated with a sole-source, Time and Materials contract for critical aircraft engineering?

The primary risks include potential cost overruns due to the lack of a fixed price ceiling and the incentive for the contractor to bill for more hours or materials. There's also a risk of reduced innovation and less favorable terms compared to a competitive environment, potentially impacting long-term sustainment costs.

How effective is this contract likely to be in ensuring the continued operational readiness of the B-1/B-52 fleet?

The effectiveness hinges on Boeing's execution and the Air Force's oversight. While Boeing has established expertise, the sole-source and T&M nature introduces risks. Effective oversight, clear performance metrics, and strong program management are essential to ensure the services provided maintain the fleet's readiness without undue cost.

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: $30,495,435

Exercised Options: $29,998,388

Current Obligation: $29,998,388

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810719D0001

IDV Type: IDC

Timeline