DoD awards $5.4M for B-52 Engineering Services to Boeing, extending through 2026
Contract Overview
Contract Amount: $5,411,381 ($5.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-09-30
End Date: 2026-12-31
Contract Duration: 1,553 days
Daily Burn Rate: $3.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: B-52 ENGINEERING SERVICES
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $5.4 million to THE BOEING COMPANY for work described as: B-52 ENGINEERING SERVICES Key points: 1. Significant contract awarded to a single, established prime contractor. 2. Focus on sustainment and modernization of a critical legacy aircraft. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Limited visibility into competitive landscape for specialized B-52 engineering.
Value Assessment
Rating: fair
The contract value of $5.4M appears reasonable for specialized engineering services on a complex platform like the B-52. However, without specific benchmarks for B-52 engineering support, a definitive assessment is challenging. The Cost Plus Fixed Fee structure introduces risk.
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. The justification for sole-source is critical.
Taxpayer Impact: Taxpayer funds are being used for a sole-source contract, which may not represent the best value. Oversight is needed to ensure fair pricing and efficient use of resources.
Public Impact
Ensures continued operational readiness of the B-52 bomber fleet. Supports the long-term sustainment and modernization of a strategic asset. Impacts the aerospace and defense sector, particularly firms involved in legacy aircraft support. Highlights reliance on original equipment manufacturers for specialized engineering.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- Long contract duration increases exposure to changing economic conditions.
Positive Signals
- Addresses critical sustainment needs for a key strategic asset.
- Leverages existing expertise of the original equipment manufacturer.
- Supports the continued readiness of the B-52 fleet.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft manufacturing and sustainment. Spending benchmarks for specialized engineering services on legacy platforms are difficult to establish due to unique requirements and limited competition.
Small Business Impact
This contract does not appear to directly involve small businesses as prime contractors. Subcontracting opportunities for small businesses may exist but are not detailed in the provided data. The focus is on the prime contractor's capabilities.
Oversight & Accountability
Oversight will be crucial to monitor costs and performance under this Cost Plus Fixed Fee contract. The Department of the Air Force must ensure that Boeing is managing resources effectively and that the pricing remains fair throughout the contract's duration.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Potential for cost escalation
- Long contract duration
- Reliance on legacy platform sustainment
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 $5.4 million to THE BOEING COMPANY. B-52 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 $5.4 million.
What is the period of performance?
Start: 2022-09-30. End: 2026-12-31.
What was the justification for awarding this contract sole-source to The Boeing Company, and were alternative solutions considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary data, or the need for seamless integration with existing systems. For the B-52, Boeing, as the original manufacturer, likely possesses unparalleled knowledge and access to technical data. However, a thorough review should confirm that no other entity could provide comparable services without prohibitive cost or unacceptable delay, and that market research was conducted.
How will the Department of Defense mitigate the risks associated with the Cost Plus Fixed Fee contract type to prevent cost overruns?
Mitigation strategies for CPFF contracts include robust oversight, detailed cost tracking, performance metrics, and regular audits. The Air Force should establish clear milestones and deliverables, closely monitor expenditures against the fixed fee, and implement strong program management to ensure efficient resource utilization. Incentive clauses or award-fee structures could also be explored to align contractor performance with cost control objectives.
What is the projected impact of these engineering services on the long-term operational readiness and modernization of the B-52 fleet?
These services are critical for maintaining the aging B-52 fleet's operational readiness and potentially integrating future upgrades. By addressing engineering challenges related to sustainment, the contract aims to extend the aircraft's service life and ensure its continued strategic relevance. The effectiveness will be measured by the fleet's availability rates, mission capable status, and the successful implementation of any modernization efforts.
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: $5,411,381
Exercised Options: $5,411,381
Current Obligation: $5,411,381
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: 2022-09-30
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-12-18
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