DoD Awards Boeing $27.1M for B-52 Engineering Services, Extending to Late 2025
Contract Overview
Contract Amount: $27,111,193 ($27.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-06-08
End Date: 2025-12-08
Contract Duration: 914 days
Daily Burn Rate: $29.7K/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 $27.1 million to THE BOEING COMPANY for work described as: B-52 ENGINEERING SERVICES Key points: 1. Significant contract awarded to a single, established aerospace prime. 2. Focus on sustainment and modernization of a critical legacy aircraft. 3. Potential for follow-on work related to B-52 upgrades. 4. High value contract in the defense aerospace sector.
Value Assessment
Rating: fair
The contract value of $27.1 million for engineering services is moderate for a platform like the B-52. Without specific benchmarks for B-52 sustainment engineering, direct comparison is difficult. However, the cost-plus-fixed-fee structure suggests potential for cost overruns if not closely managed.
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 competition, potentially leading to higher costs than if multiple vendors had bid.
Taxpayer Impact: Taxpayer funds are being used for essential sustainment of a strategic asset. The lack of competition raises concerns about cost-effectiveness.
Public Impact
Ensures continued operational readiness of the B-52 bomber fleet. Supports critical engineering and technical services for a long-serving aircraft. Impacts national defense capabilities and strategic deterrence.
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 lead to cost overruns.
- Long duration of contract (over 2 years) increases risk exposure.
Positive Signals
- Essential for maintaining a key strategic asset.
- Awarded to the original equipment manufacturer, likely possessing unique expertise.
- Supports ongoing modernization efforts for the B-52.
Sector Analysis
This contract falls within the Defense sector, specifically supporting aircraft sustainment and engineering. Spending in this area is critical for maintaining the readiness of aging but vital military platforms. Benchmarks for similar sole-source engineering contracts on legacy aircraft would be useful for a more precise assessment.
Small Business Impact
This contract was awarded directly to The Boeing Company, a large aerospace prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data. The nature of specialized engineering services for a platform like the B-52 often favors large, established firms.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight will be crucial to manage the cost-plus-fixed-fee structure and ensure the contractor delivers necessary engineering services effectively and efficiently within the defined period.
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
- Lack of small business participation noted
- Long contract duration
- Aging platform requiring ongoing sustainment
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 $27.1 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 $27.1 million.
What is the period of performance?
Start: 2023-06-08. End: 2025-12-08.
What is the historical cost performance of similar sole-source B-52 engineering contracts awarded to Boeing?
Analyzing historical cost performance of comparable sole-source contracts for B-52 engineering services awarded to Boeing is essential. This would provide a baseline to assess whether the current $27.1 million award is reasonable. Without this data, it's difficult to determine if the cost-plus-fixed-fee structure is being managed effectively or if there's a risk of significant cost growth beyond the initial estimate.
What specific engineering tasks are included in this contract, and how do they contribute to the B-52's modernization or sustainment?
The contract details specific engineering tasks, such as design, analysis, testing, and technical support, crucial for maintaining the B-52's operational readiness and potentially integrating future upgrades. Understanding these tasks helps evaluate the necessity and value of the $27.1 million expenditure. It clarifies whether the funds are directed towards essential upkeep or strategic modernization efforts.
What is the Air Force's strategy for ensuring competitive pricing on future B-52 sustainment and modernization efforts?
The Air Force's strategy for future B-52 sustainment and modernization pricing is critical given this sole-source award. While Boeing holds unique expertise, exploring options like competitive prototyping, phased procurements, or incentivizing innovation could yield better value. Proactive planning for competition on subsequent contract actions is key to mitigating long-term cost increases.
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: $27,111,193
Exercised Options: $27,111,193
Current Obligation: $27,111,193
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: 2023-06-08
Current End Date: 2025-12-08
Potential End Date: 2025-12-08 00:00:00
Last Modified: 2025-11-20
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