Boeing awarded $19.1M for C32/C40 aircraft fleet logistics support, a critical defense service
Contract Overview
Contract Amount: $19,091,310 ($19.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-07-01
End Date: 2024-02-29
Contract Duration: 243 days
Daily Burn Rate: $78.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTRACTOR LOGISTICS SUPPORT FOR C32/C40 AIRCRAFT FLEET
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $19.1 million to THE BOEING COMPANY for work described as: CONTRACTOR LOGISTICS SUPPORT FOR C32/C40 AIRCRAFT FLEET Key points: 1. Contract provides essential logistics support for specialized government aircraft. 2. Full and open competition suggests a competitive bidding process. 3. Firm-fixed-price contract type shifts cost risk to the contractor. 4. Contract duration of 243 days indicates a short-term operational need. 5. Awarded by the Defense Contract Management Agency, highlighting defense sector focus. 6. The contractor, Boeing, is a major aerospace and defense industry player.
Value Assessment
Rating: good
The contract value of $19.1 million for approximately 8 months of logistics support appears reasonable given the specialized nature of C32/C40 aircraft. Benchmarking against similar specialized aircraft support contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government, as it caps potential cost overruns. However, without detailed cost breakdowns or comparisons to industry standards for this specific type of support, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and allowed to compete. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The specific number of bidders is not provided, but the designation suggests a robust competition was pursued.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value through a competitive bidding process, potentially driving down costs and improving service quality.
Public Impact
Ensures the operational readiness and availability of C32/C40 aircraft, vital for government transportation and executive travel. Supports critical national security and governmental functions reliant on these specialized aircraft. Benefits the Department of Defense by maintaining essential fleet support capabilities. Impacts the aerospace and defense logistics sector through contract awards to established providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for sole-source extensions if competition is not re-established for future needs.
- Dependence on a single contractor for critical logistics could pose a risk if performance issues arise.
Positive Signals
- Award to a reputable and experienced contractor (Boeing) suggests a higher likelihood of successful performance.
- Firm-fixed-price contract structure provides cost certainty for the government.
- Full and open competition indicates a commitment to seeking competitive solutions.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on logistics and support services for specialized government aircraft. The market for such services is dominated by large aerospace manufacturers and specialized defense contractors. Spending in this area is driven by the need to maintain aging fleets and ensure operational readiness for critical government missions. Comparable spending benchmarks would involve analyzing other contracts for fleet support of similar government-owned aircraft.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major corporation, it is unlikely that significant subcontracting opportunities for small businesses will be mandated or prioritized, unless explicitly included in the contract terms. This suggests a limited direct impact on the small business ecosystem for this specific award.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which provides contract administration services to the Department of Defense. Oversight mechanisms would include DCMA's performance monitoring, quality assurance checks, and adherence to contract terms. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Government Aircraft Logistics Support
- Defense Fleet Maintenance Services
- Aerospace Contractor Support
- C-32 Aircraft Operations
- C-40 Aircraft Operations
Risk Flags
- Contract Duration
- Sole Source Risk
- Performance Monitoring
Tags
defense, department-of-defense, dcma, logistics-support, aircraft-fleet, c32-aircraft, c40-aircraft, firm-fixed-price, full-and-open-competition, boeing, transportation, oklahoma
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.1 million to THE BOEING COMPANY. CONTRACTOR LOGISTICS SUPPORT FOR C32/C40 AIRCRAFT 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 $19.1 million.
What is the period of performance?
Start: 2023-07-01. End: 2024-02-29.
What is the historical spending pattern for logistics support of the C32/C40 aircraft fleet?
Analyzing historical spending for the C32/C40 aircraft fleet's logistics support requires access to detailed contract databases and historical procurement records. Without specific historical data for this particular fleet, it's difficult to establish a precise pattern. However, generally, such support contracts are recurring, especially for aging fleets, and their value can fluctuate based on maintenance needs, upgrades, and the number of aircraft in active service. The current award of approximately $19.1 million for an 8-month period suggests a significant but potentially episodic investment rather than continuous high-level spending. Further investigation into prior contracts for these specific airframes would be necessary to identify trends in spending levels, contract types, and incumbent contractors.
How does the awarded price compare to similar contracts for government aircraft logistics?
Comparing the awarded price of $19.1 million for approximately 8 months of logistics support for the C32/C40 fleet requires identifying comparable contracts. Key factors for comparison include the type and age of aircraft, the scope of logistics services (e.g., maintenance, parts, technical support), contract duration, and the specific agency awarding the contract. Without direct access to a database of similar, contemporaneous contracts, a precise benchmark is challenging. However, given that the C32 (Boeing 757) and C40 (Boeing 737) are specialized variants of commercial aircraft used for executive and high-priority transport, their support can be costly due to unique modifications and operational demands. The price appears within a reasonable range for specialized fleet support, but a detailed analysis against contracts for similar VIP or specialized transport aircraft would be needed for a definitive value assessment.
What is Boeing's track record with providing logistics support for government aircraft?
The Boeing Company has an extensive and long-standing track record of providing a wide array of products and services to the U.S. government, including significant experience in aircraft manufacturing, modification, and sustainment. This includes logistics support for various military and government aircraft platforms. Their involvement with the C-17, KC-46, and numerous other defense programs demonstrates a deep understanding of military requirements, supply chain management, and maintenance operations. For the C32 and C40 fleets specifically, Boeing, as the original manufacturer, is well-positioned to offer comprehensive logistics support, including technical data, spare parts, and maintenance expertise. Their history suggests a capability to meet the demanding requirements of government aviation sustainment.
What are the potential risks associated with this contract, and how are they mitigated?
Potential risks associated with this contract include performance failures by the contractor (Boeing), leading to aircraft downtime or mission delays; cost overruns if the firm-fixed-price structure is inadequate for unforeseen issues; and supply chain disruptions affecting parts availability. Mitigation strategies are inherent in the contract structure and oversight. The firm-fixed-price nature shifts significant cost risk to Boeing. The full and open competition process aims to select a capable contractor, and the Defense Contract Management Agency (DCMA) provides oversight to monitor performance, quality, and compliance. Contractual remedies for non-performance, such as liquidated damages or termination, also serve as deterrents. Furthermore, the government likely maintains contingency plans and may have other support providers or internal capabilities as backups.
How does the competition level (full and open) impact the value received by the government?
A 'full and open' competition level generally enhances the value received by the government. This process mandates that all responsible sources are permitted to submit a bid, fostering a competitive environment where multiple companies vie for the contract. This competition typically drives down prices, encourages innovation, and leads to higher quality services as contractors strive to offer the most attractive proposal. For taxpayers, this means a greater likelihood that the government is obtaining the required logistics support at the most reasonable cost possible. While the specific number of bidders isn't detailed here, the designation itself signals an effort to leverage market forces to achieve best value, rather than relying on sole-source or limited competition scenarios which often result in higher prices.
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
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: $19,737,948
Exercised Options: $19,091,310
Current Obligation: $19,091,310
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $13,018,007
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA813423DB004
IDV Type: IDC
Timeline
Start Date: 2023-07-01
Current End Date: 2024-02-29
Potential End Date: 2024-02-29 00:00:00
Last Modified: 2025-12-16
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