DoD awards Boeing $32.6M for C-32/C-40 aircraft logistics support, raising value concerns
Contract Overview
Contract Amount: $32,578,732 ($32.6M)
Contractor: Boeing Aerospace Operations, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-07-01
End Date: 2023-12-31
Contract Duration: 548 days
Daily Burn Rate: $59.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTRACTOR LOGISTICS SUPPORT FOR C-32/C-40 AIRCRAFT FLEETS
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $32.6 million to BOEING AEROSPACE OPERATIONS, INC. for work described as: CONTRACTOR LOGISTICS SUPPORT FOR C-32/C-40 AIRCRAFT FLEETS Key points: 1. Contract value of $32.6M for aircraft logistics support. 2. Awarded to Boeing Aerospace Operations, Inc. 3. Full and open competition was utilized. 4. Risk of potential overpricing due to fixed-price contract type.
Value Assessment
Rating: questionable
The contract value of $32.6M for logistics support of two aircraft types seems high. Benchmarking against similar support contracts for comparable aircraft fleets is recommended to assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific pricing structure and the absence of detailed cost breakdowns make it difficult to fully assess price discovery.
Taxpayer Impact: Taxpayer funds are being used for aircraft support. Ensuring competitive pricing and efficient service delivery is crucial for maximizing the value of this expenditure.
Public Impact
Ensures operational readiness of critical government transport aircraft. Supports the logistical needs of high-ranking officials and military personnel. Potential impact on budget allocation for other defense priorities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with fixed-price contracts.
- Limited transparency on specific cost components.
- Dependence on a single contractor for critical support.
Positive Signals
- Ensures availability of essential aircraft.
- Utilizes a competitive bidding process.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on support activities for air transportation. Spending benchmarks for similar logistics contracts are typically high due to the specialized nature of aircraft maintenance and operations.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if opportunities for small business subcontracting were explored or mandated.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is necessary to ensure performance standards are met and costs are justified.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost creep in fixed-price contracts.
- Lack of detailed cost transparency.
- Dependence on a single large contractor.
- Limited visibility into small business participation.
- Ensuring value for money at this contract level.
Tags
other-support-activities-for-air-transpo, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.6 million to BOEING AEROSPACE OPERATIONS, INC.. CONTRACTOR LOGISTICS SUPPORT FOR C-32/C-40 AIRCRAFT FLEETS
Who is the contractor on this award?
The obligated recipient is BOEING AEROSPACE OPERATIONS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $32.6 million.
What is the period of performance?
Start: 2022-07-01. End: 2023-12-31.
What is the specific breakdown of costs within this $32.6M contract, and how does it compare to industry standards for similar services?
The provided data does not include a detailed cost breakdown. A comprehensive review of the contract's financial structure is needed to compare line-item costs against industry benchmarks for aircraft logistics support. This would help identify potential areas of overpricing or inefficiencies and ensure taxpayer funds are used effectively.
What are the key performance indicators (KPIs) for this contract, and how is Boeing's performance being measured against them?
Key performance indicators are crucial for assessing the effectiveness of this logistics support contract. While not detailed here, typical KPIs would include aircraft availability rates, response times for maintenance, and adherence to safety and quality standards. Regular performance reviews by the contracting agency are essential to ensure Boeing meets its obligations.
What is the long-term strategy for C-32/C-40 aircraft support, and does this contract align with future modernization or replacement plans?
Understanding the long-term strategy is vital. This contract's duration and scope should align with the projected service life of the C-32 and C-40 fleets. If these aircraft are nearing the end of their operational life or slated for replacement, the focus might shift from extensive support to sustainment or transition planning.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Boeing Company
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: $33,805,575
Exercised Options: $33,794,962
Current Obligation: $32,578,732
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $13,147,555
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810616D0004
IDV Type: IDC
Timeline
Start Date: 2022-07-01
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2025-12-16
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