DoD awards Boeing $191.7M for E-4B Fleet Sustainment, raising concerns over limited competition
Contract Overview
Contract Amount: $191,680,355 ($191.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-11-30
End Date: 2025-09-30
Contract Duration: 2,496 days
Daily Burn Rate: $76.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SUSTAINMENT SUPPORT FOR THE E-4B FLEET.
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $191.7 million to THE BOEING COMPANY for work described as: SUSTAINMENT SUPPORT FOR THE E-4B FLEET. Key points: 1. Significant contract value for specialized aircraft sustainment. 2. Sole reliance on Boeing for E-4B support presents a competition risk. 3. Long-term contract duration may impact cost-effectiveness. 4. Sector is niche, focusing on unique military aircraft maintenance.
Value Assessment
Rating: questionable
The $191.7 million award for sustainment support is substantial. Without competitive benchmarking, it's difficult to assess if this price is optimal compared to potential alternatives or historical data for similar specialized fleet support.
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 lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition for critical sustainment services may result in taxpayers paying a premium for E-4B fleet support.
Public Impact
Ensures operational readiness of the E-4B, a critical command and control aircraft. Supports a specialized segment of the aerospace and defense industry. Potential for cost overruns due to sole-source nature impacts taxpayer funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Ensures critical fleet sustainment
- Supports national security objectives
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on the sustainment of a unique, high-value military aircraft. Spending benchmarks for such specialized support are difficult to establish due to the limited number of similar platforms and providers.
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, suggesting limited direct impact.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The sole-source nature warrants close scrutiny to ensure fair pricing and effective performance.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for cost overruns.
- Long contract duration may reduce flexibility.
- Dependence on a single provider for critical support.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ok, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $191.7 million to THE BOEING COMPANY. SUSTAINMENT SUPPORT FOR THE E-4B FLEET.
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $191.7 million.
What is the period of performance?
Start: 2018-11-30. End: 2025-09-30.
What is the justification for the sole-source award, and were alternative solutions considered?
The sole-source award to Boeing for E-4B sustainment likely stems from unique technical expertise and proprietary knowledge required for this specific, aging fleet. While alternatives might have been explored, the complexity and criticality of the E-4B platform often necessitate reliance on the original equipment manufacturer to ensure operational integrity and minimize risks.
How is the government ensuring cost-effectiveness and preventing potential overpricing in this sole-source arrangement?
The government likely employs robust contract surveillance and auditing mechanisms, potentially including cost realism analyses and performance metrics, to manage costs. However, the inherent limitations of sole-source procurement mean that continuous oversight and negotiation are crucial to mitigate the risk of paying above fair market value.
What are the long-term implications for the E-4B fleet's operational readiness and modernization given this sustainment contract?
This contract ensures the immediate operational readiness of the E-4B fleet through dedicated sustainment. However, the long duration and sole-source nature might not incentivize innovation or prepare the fleet for future modernization efforts as effectively as a more competitive environment could.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
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: $191,682,224
Exercised Options: $191,682,224
Current Obligation: $191,680,355
Actual Outlays: $13,817,027
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA810616D0002
IDV Type: IDC
Timeline
Start Date: 2018-11-30
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-09-17
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