DoD Awards $60.5M E-4B Depot Maintenance to Boeing, Raising Concerns Over Competition and Value
Contract Overview
Contract Amount: $60,483,791 ($60.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-01-02
End Date: 2026-07-31
Contract Duration: 2,767 days
Daily Burn Rate: $21.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: E-4B PROGRAMMED DEPOT MAINTENANCE FOR A/C 74-0787
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $60.5 million to THE BOEING COMPANY for work described as: E-4B PROGRAMMED DEPOT MAINTENANCE FOR A/C 74-0787 Key points: 1. Significant contract value for specialized aircraft maintenance. 2. Sole-source award to Boeing limits competitive pricing. 3. Potential for cost overruns given the Cost Plus Incentive Fee structure. 4. Long-term contract duration may not reflect evolving needs.
Value Assessment
Rating: questionable
The $60.5 million contract value for programmed depot maintenance on a single E-4B aircraft is substantial. Without competitive bidding, it's difficult to benchmark against similar specialized maintenance contracts, raising questions about whether the government is receiving the best possible price.
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 likely hindered price discovery and may have resulted in a higher cost than if multiple vendors had vied for the contract.
Taxpayer Impact: The absence of competition on this large contract means taxpayers may be paying a premium for specialized aircraft maintenance, as the government did not leverage market forces to secure the most cost-effective solution.
Public Impact
Essential maintenance for a critical national security asset (E-4B). Potential impact on readiness if maintenance is delayed or costs escalate. Lack of transparency in pricing due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Incentive Fee contract type
- Long contract duration
- No small business participation
Positive Signals
- Essential maintenance for a critical platform
- Contract awarded to incumbent manufacturer
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, specifically for specialized depot maintenance. Spending in this niche area is often characterized by high barriers to entry and limited competition, especially for unique platforms like the E-4B.
Small Business Impact
There is no indication of small business participation in this contract. Given the specialized nature of E-4B depot maintenance and the sole-source award to a large prime contractor, opportunities for small businesses appear to be minimal.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets expectations. The Air Force should scrutinize expenditures under the Cost Plus Incentive Fee structure to prevent potential overruns.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Cost Plus Incentive Fee contract type
- Potential for cost overruns
- No small business participation
- Long contract duration
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ok, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $60.5 million to THE BOEING COMPANY. E-4B PROGRAMMED DEPOT MAINTENANCE FOR A/C 74-0787
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 $60.5 million.
What is the period of performance?
Start: 2019-01-02. End: 2026-07-31.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. For the E-4B, Boeing's role as the original manufacturer might be cited. However, a thorough review should confirm that no other qualified entities could perform the maintenance, even with a modified approach, and that competitive solicitations were genuinely explored.
How are costs being controlled and validated under the Cost Plus Incentive Fee (CPIF) structure for this specialized maintenance?
Under a CPIF contract, the government and contractor agree on target costs and a fee structure that incentivizes cost savings. Effective oversight requires rigorous tracking of actual costs against the target, clear definition of performance metrics, and robust negotiation of the final fee based on achieved efficiencies. Regular audits and detailed cost analysis are crucial to prevent contractor overspending and ensure value.
What is the long-term strategy for E-4B depot maintenance to ensure future competition and cost-effectiveness?
The current sole-source award raises questions about long-term strategy. The Air Force should explore options for fostering future competition, potentially through breaking down maintenance tasks, developing alternative maintenance providers, or investing in government-owned technical data. Proactive planning is needed to avoid perpetual sole-source reliance and ensure sustained cost-effectiveness for this critical asset's lifecycle.
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: 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: $60,483,791
Exercised Options: $60,483,791
Current Obligation: $60,483,791
Actual Outlays: $5,179,663
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: 2019-01-02
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2025-10-31
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)