DoD awards $36.5M to Boeing for E4B contractor logistics, raising concerns about competition
Contract Overview
Contract Amount: $36,526,407 ($36.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-12-08
End Date: 2026-05-31
Contract Duration: 905 days
Daily Burn Rate: $40.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: Defense
Official Description: PURCHASING E4B CONTRACTOR LOGISTICS SERVICES
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $36.5 million to THE BOEING COMPANY for work described as: PURCHASING E4B CONTRACTOR LOGISTICS SERVICES Key points: 1. Significant contract value of $36.5M for specialized logistics services. 2. Sole-source award to Boeing suggests limited competition and potential for higher costs. 3. Risk of inflated pricing due to lack of competitive bidding. 4. Sector context: Defense logistics, critical for aircraft readiness.
Value Assessment
Rating: questionable
The contract value of $36.5M for logistics services is substantial. Without competitive bidding, it's difficult to assess if this price is fair compared to similar contracts for specialized aircraft support.
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 limits price discovery and may lead to less favorable terms for the government.
Taxpayer Impact: The absence of competition could result in taxpayers paying more than necessary for these essential logistics services.
Public Impact
Taxpayers may be overpaying for critical aircraft support services. Potential for reduced efficiency and innovation due to lack of market pressure. Ensuring the long-term availability and affordability of E4B aircraft operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Essential service for E4B aircraft
- Experienced contractor
Sector Analysis
This contract falls within the defense logistics sector, specifically supporting the E4B aircraft. Spending benchmarks for specialized contractor logistics services can vary widely based on aircraft type and service scope.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both 'ss' and 'sb' fields are false. This suggests a focus on large, established prime contractors for this specialized service.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and performance. The Department of the Air Force awarded this delivery order, and mechanisms should be in place to monitor costs and contractor performance closely.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for overpricing due to sole-source award.
- Lack of transparency in the procurement process.
- Risk of contractor lock-in and reduced future competition.
- Dependence on a single contractor for critical logistics.
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 $36.5 million to THE BOEING COMPANY. PURCHASING E4B CONTRACTOR LOGISTICS SERVICES
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 $36.5 million.
What is the period of performance?
Start: 2023-12-08. End: 2026-05-31.
What specific justification was provided for the sole-source award, and were alternative solutions considered?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. Further investigation would be needed to determine if alternatives were explored and why they were deemed unsuitable.
How does the $36.5M contract value compare to historical spending on E4B contractor logistics services?
Without historical data or benchmarks for E4B contractor logistics, it is difficult to definitively assess if $36.5M is a reasonable or excessive amount. A comparative analysis with similar contracts for other specialized aircraft fleets or previous E4B support contracts would be necessary to establish a baseline.
What performance metrics and oversight mechanisms are in place to ensure the effectiveness and value of these services?
The provided data does not detail specific performance metrics or oversight mechanisms. For a contract of this value and nature, robust oversight, including regular performance reviews, cost audits, and clear deliverables, should be established by the Department of the Air Force to ensure accountability and taxpayer value.
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 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: $36,526,407
Exercised Options: $36,526,407
Current Obligation: $36,526,407
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: 2023-12-08
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 00:00:00
Last Modified: 2025-09-29
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