Air Force awards $6.9M contract to Boeing for B-52 engineering services, extending through 2027
Contract Overview
Contract Amount: $6,909,765 ($6.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-12-09
End Date: 2027-06-09
Contract Duration: 2,008 days
Daily Burn Rate: $3.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED 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 $6.9 million to THE BOEING COMPANY for work described as: B52 ENGINEERING SERVICES Key points: 1. Significant contract value for specialized aircraft engineering. 2. Sole-source award to incumbent prime contractor raises competition concerns. 3. Long contract duration may impact price competitiveness and innovation. 4. Focus on sustainment and modernization of a critical defense asset.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure allows for flexibility but requires careful oversight to manage costs. Benchmarking against similar sole-source sustainment contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to the specialized nature of B-52 engineering and the incumbent's unique knowledge. The lack of competition limits price discovery and potentially leads to higher costs.
Taxpayer Impact: Taxpayer funds are committed to a sole-source provider for essential aircraft sustainment, with limited opportunity for cost savings through competition.
Public Impact
Ensures continued operational readiness of the B-52 bomber fleet. Supports critical maintenance and upgrade programs for a legacy aircraft. Potential for cost overruns due to sole-source nature and 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
- Supports critical defense asset
- Incumbent expertise leveraged
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft sustainment and engineering services. Spending in this area is often characterized by long-term contracts and specialized, non-competitive requirements due to unique platform knowledge.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The cost-plus-fixed-fee structure necessitates robust oversight from the Department of the Air Force to ensure costs are reasonable and allocable. Auditing and performance monitoring will be crucial for accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type can lead to cost overruns.
- Long contract duration may reduce cost efficiency.
- Lack of transparency on specific engineering tasks.
- Potential for vendor lock-in.
Tags
aircraft-manufacturing, department-of-defense, ok, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.9 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 $6.9 million.
What is the period of performance?
Start: 2021-12-09. End: 2027-06-09.
What is the justification for the sole-source award, and were alternative competition strategies considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary data, or the need for continuity with an incumbent contractor possessing specialized knowledge. For the B-52, this likely relates to deep system understanding and existing infrastructure. Alternative strategies might include phased competitions or market research to identify potential new entrants, though these can be challenging for highly specialized legacy systems.
How will the cost-plus-fixed-fee structure be managed to prevent cost overruns, given the long duration?
Managing a cost-plus-fixed-fee contract over a long duration requires stringent oversight. The Air Force must implement rigorous auditing of incurred costs, establish clear performance metrics, and conduct regular reviews to ensure the fixed fee remains appropriate and that costs are controlled. Incentive clauses tied to cost savings or performance improvements could also be explored to align contractor and government interests.
What is the long-term strategy for B-52 sustainment, and how does this contract fit into that plan?
This contract appears to be a key component of the B-52's ongoing sustainment and modernization strategy, ensuring the aircraft remains operational and effective. The long-term plan likely involves a series of contracts addressing different aspects of maintenance, upgrades, and potential future enhancements. Understanding how this specific award contributes to the broader fleet readiness and modernization roadmap is essential for assessing its overall effectiveness.
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: $6,909,765
Exercised Options: $6,909,765
Current Obligation: $6,909,765
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: 2021-12-09
Current End Date: 2027-06-09
Potential End Date: 2027-06-09 00:00:00
Last Modified: 2026-01-08
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