Air Force awards $55.5M Boeing contract for E4B contractor logistic services
Contract Overview
Contract Amount: $55,490,871 ($55.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-05-24
End Date: 2025-11-30
Contract Duration: 1,286 days
Daily Burn Rate: $43.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: PURCHASING CONTRACTOR LOGISTIC 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 $55.5 million to THE BOEING COMPANY for work described as: PURCHASING CONTRACTOR LOGISTIC SERVICES FOR THE E4B Key points: 1. Significant contract value for specialized aircraft support. 2. Sole-source award to Boeing raises questions about competition. 3. Long-term contract duration (over 3 years) requires ongoing scrutiny. 4. Focus on logistic services for a critical national asset.
Value Assessment
Rating: fair
The contract value of $55.5M for logistic services appears substantial. Benchmarking against similar specialized aircraft support contracts is difficult without more detailed service breakdowns, but the sole-source nature suggests limited price discovery.
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 opportunities for competitive bidding and potentially impacts price discovery, as there is no direct comparison to other potential providers.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a fully competed contract, though the specialized nature of the services might justify the sole-source approach in some cases.
Public Impact
Ensures continued operational readiness of the E4B aircraft fleet. Supports critical national defense and emergency response capabilities. Potential for cost overruns due to sole-source nature. Impacts the broader aerospace and defense logistics sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Essential service for national security asset
- Experienced contractor
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on specialized aircraft maintenance and logistics. Spending in this area is often characterized by high technical requirements and long-term support needs, frequently involving sole-source or limited competition due to contractor expertise and proprietary systems.
Small Business Impact
This 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 on the small business sector for this specific award.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight from the Department of the Air Force to ensure fair pricing and efficient service delivery. Robust performance metrics and regular reviews are crucial for accountability.
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.
- Cost-plus contract type can lead to cost overruns.
- Long contract duration increases long-term risk.
- Lack of transparency on performance metrics.
- Potential for contractor lock-in.
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 $55.5 million to THE BOEING COMPANY. PURCHASING CONTRACTOR LOGISTIC 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 $55.5 million.
What is the period of performance?
Start: 2022-05-24. End: 2025-11-30.
What is the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. For the E4B aircraft, Boeing's deep knowledge of the platform likely forms the basis. However, a thorough review should confirm that no other qualified vendors could provide the necessary logistic services, even with a modified approach, to ensure the government received the best possible value.
How will the cost-plus incentive fee structure be managed to control costs and incentivize performance?
The cost-plus incentive fee (CPIF) structure aims to align contractor and government interests by allowing the contractor to earn a higher profit if costs are below a target and performance targets are met. Effective management requires clearly defined performance metrics, realistic cost targets, and transparent reporting. Regular audits and negotiations are essential to ensure the incentive structure drives efficiency rather than inflated costs.
What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure effectiveness?
Key performance indicators for logistic services typically include aircraft availability rates, response times for parts and maintenance, quality of repairs, and adherence to schedules. These KPIs must be clearly defined in the contract and measurable through objective data. The Air Force should establish a robust system for tracking these metrics and conducting regular performance reviews to ensure the contractor is meeting expectations and delivering effective support.
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: $55,490,871
Exercised Options: $55,490,871
Current Obligation: $55,490,871
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: 2022-05-24
Current End Date: 2025-11-30
Potential End Date: 2025-11-30 00:00:00
Last Modified: 2025-04-25
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