DoD Awards Boeing $34M Contract for E4B Logistic Services Amidst Limited Competition
Contract Overview
Contract Amount: $34,026,208 ($34.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-09-27
End Date: 2026-09-30
Contract Duration: 1,829 days
Daily Burn Rate: $18.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: Defense
Official Description: PURCHASING CONTRACTOR LOGISITC SERVICES FOR THE E4B
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $34.0 million to THE BOEING COMPANY for work described as: PURCHASING CONTRACTOR LOGISITC SERVICES FOR THE E4B Key points: 1. Significant contract value of $34 million for logistic services. 2. Sole-source award to The Boeing Company raises questions about competition. 3. Long contract duration (2021-2026) suggests potential for cost overruns. 4. Focus on E4B aircraft parts indicates a specialized, high-stakes sector.
Value Assessment
Rating: questionable
The contract's 'Cost No Fee' structure with a base value of $34 million and a ceiling of $18.6 million (likely a typo in the source data, assuming it refers to a different metric or is incomplete) warrants scrutiny. Without clear performance metrics or a fixed price, assessing value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award to The Boeing Company. This lack of competition limits price discovery and may result in higher costs for the government.
Taxpayer Impact: The absence of competitive bidding on this $34 million contract could lead to taxpayers paying more than necessary for logistic services.
Public Impact
Ensures continued operational readiness for the E4B fleet. Supports critical national defense capabilities. Potential for increased costs due to lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
Positive Signals
- Essential service for critical aircraft
- Experienced contractor
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, specifically supporting the E4B aircraft. Spending in this niche area is critical for national defense, but often involves higher costs due to specialized requirements and limited contractor availability.
Small Business Impact
The awardee is The Boeing Company, a large aerospace corporation. There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors.
Oversight & Accountability
The 'Cost No Fee' contract type requires robust oversight to ensure costs are reasonable and allocable. The Department of the Air Force must diligently monitor expenditures and performance to mitigate risks associated with this award structure.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost No Fee contract type may lack incentive for cost control.
- Long contract duration increases risk of cost escalation.
- Lack of transparency in pricing due to cost-reimbursement structure.
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 $34.0 million to THE BOEING COMPANY. PURCHASING CONTRACTOR LOGISITC SERVICES FOR THE E4B
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 $34.0 million.
What is the period of performance?
Start: 2021-09-27. End: 2026-09-30.
What is the justification for the sole-source award to The Boeing Company for E4B logistic services, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. The Department of the Air Force should have documented this justification. For fair pricing, oversight of the 'Cost No Fee' structure is paramount, requiring rigorous auditing of Boeing's incurred costs and ensuring they align with contract terms and industry standards.
What are the specific risks associated with a 'Cost No Fee' contract for logistic services, particularly given the long duration?
A 'Cost No Fee' contract carries inherent risks as the contractor is reimbursed for allowable costs without a fixed profit margin. This can disincentivize cost control. For a long duration, the risk of cost escalation due to inflation, unforeseen technical issues, or changes in operational tempo is significant. Robust government oversight and clear cost accounting standards are crucial.
How does this contract contribute to the overall effectiveness and readiness of the E4B fleet, and are there alternative solutions being considered?
This contract is essential for maintaining the operational readiness of the E4B fleet, which serves as a critical command and control platform. Its effectiveness hinges on the timely and accurate provision of logistic services. While this sole-source award addresses immediate needs, the Air Force should continuously explore potential future competition or alternative support models to ensure long-term cost-effectiveness and resilience.
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
Solicitation ID: FA813421RXXXX
Pricing Type: COST NO FEE (S)
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: $34,026,208
Exercised Options: $34,026,208
Current Obligation: $34,026,208
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: 2021-09-27
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-02-05
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