DoD Awards Boeing $67.4M for B-52 Engineering Services, Extending Through August 2026
Contract Overview
Contract Amount: $67,358,026 ($67.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-09-28
End Date: 2026-08-31
Contract Duration: 1,798 days
Daily Burn Rate: $37.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: B52 ENGINEERING SERVICES
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $67.4 million to THE BOEING COMPANY for work described as: B52 ENGINEERING SERVICES Key points: 1. Significant contract value for specialized aircraft sustainment. 2. Sole-source award to incumbent prime contractor raises competition concerns. 3. Long-term nature of the contract requires ongoing performance monitoring. 4. Focus on aircraft manufacturing sector, critical for national defense.
Value Assessment
Rating: fair
The contract is a Cost Plus Incentive Fee type, which can lead to costs exceeding initial estimates if not managed carefully. Benchmarking against similar sustainment contracts for aging aircraft fleets is difficult without more detailed cost breakdowns.
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 compared to a competitive environment.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these engineering services, as there was no market pressure to drive down costs.
Public Impact
Ensures continued operational readiness of the B-52 bomber fleet. Supports critical engineering expertise for a legacy aircraft system. Potential for cost overruns due to sole-source, cost-plus contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
Positive Signals
- Ensures critical sustainment for aging aircraft
- Leverages incumbent contractor expertise
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on sustainment and engineering services for a major weapon system. Spending benchmarks for similar sole-source sustainment contracts for aging platforms are typically high due to specialized knowledge and limited alternatives.
Small Business Impact
There is no indication of small business participation in this specific contract award. Future solicitations or subcontracts should be reviewed for opportunities to engage small businesses in supporting roles.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The Cost Plus Incentive Fee structure requires diligent monitoring of costs and performance to ensure value for money and prevent contractor overreach.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Cost-plus contract type risks overruns
- Long-term dependency on sole-source provider
- Aging aircraft sustainment challenges
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 $67.4 million to THE BOEING COMPANY. B52 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 $67.4 million.
What is the period of performance?
Start: 2021-09-28. End: 2026-08-31.
What is the justification for the sole-source award, and were alternative acquisition strategies considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary data, or the need for continuity with an existing system. Agencies must document thorough market research to confirm no other sources can meet the requirement. Without this documentation, it's difficult to assess if competitive options were truly unavailable or if the sole-source path was chosen for convenience.
How will the incentive fee structure be managed to ensure cost control and contractor performance?
Effective management of the incentive fee requires clearly defined performance metrics and cost targets that are challenging yet achievable. Regular reviews of contractor progress against these targets, along with transparent communication, are crucial. The government must actively negotiate and monitor the incentive structure to ensure it aligns with taxpayer interests and drives desired outcomes without encouraging unnecessary spending.
What is the long-term strategy for B-52 sustainment beyond this contract's end date?
Understanding the long-term sustainment plan is vital to assess the strategic value of this contract. If this award is part of a broader strategy to extend the B-52's service life, it could represent good value. However, if it merely addresses immediate needs without a clear future vision, it might be a stop-gap measure. Clarity on future modernization or replacement plans would provide better context for this investment.
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: $83,269,889
Exercised Options: $67,358,026
Current Obligation: $67,358,026
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: 2021-09-28
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 00:00:00
Last Modified: 2025-07-23
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