Boeing Awarded $80M DoD Contract for E4B Contractor Logistic Services
Contract Overview
Contract Amount: $80,032,626 ($80.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-09-27
End Date: 2026-07-27
Contract Duration: 668 days
Daily Burn Rate: $119.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: E4B CONTRACTOR LOGISITC SERVICES
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $80.0 million to THE BOEING COMPANY for work described as: E4B CONTRACTOR LOGISITC SERVICES Key points: 1. Significant contract value of $80 million for essential logistic services. 2. Sole-source award to The Boeing Company raises questions about competition. 3. Potential risk associated with single-vendor reliance for critical support. 4. Spending falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar logistic support contracts for specialized aircraft is difficult without more detailed cost breakdowns.
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 price discovery and potentially leads to higher costs compared to a competitive bidding process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential logistic services.
Public Impact
Ensures continued operational readiness for the E4B fleet. Supports critical national defense capabilities. Potential for increased costs due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee pricing
- Lack of transparency in cost build-up
Positive Signals
- Essential service for national security
- Experienced contractor
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, specifically supporting specialized aircraft logistics. Spending benchmarks for such niche services are hard to establish due to limited comparable contracts.
Small Business Impact
The contract was awarded to The Boeing Company, a large business. There is no indication of subcontracting opportunities for small businesses within this sole-source award.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for oversight. The sole-source nature warrants close monitoring to ensure fair pricing and effective service delivery.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee structure carries inherent risk of cost overruns.
- Lack of transparency in cost build-up for a large contract.
- Potential for contractor lock-in due to specialized nature of services.
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 $80.0 million to THE BOEING COMPANY. E4B CONTRACTOR LOGISITC 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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $80.0 million.
What is the period of performance?
Start: 2024-09-27. End: 2026-07-27.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities or urgent needs that only one contractor can meet. Without further documentation, it's unclear if alternative competitive strategies were explored or deemed infeasible. This lack of competition raises concerns about potential overpayment and reduced value for taxpayer funds.
How will the Cost Plus Fixed Fee structure be managed to mitigate cost overruns and ensure value?
Effective management of a Cost Plus Fixed Fee contract requires rigorous oversight of incurred costs, clear definition of the fixed fee, and robust performance metrics. The Defense Contract Management Agency must actively monitor expenditures, validate costs, and ensure Boeing meets all performance requirements to prevent excessive spending and ensure the government receives good value.
What is the long-term strategy for ensuring competitive pricing for E4B logistic services beyond this contract?
Given the critical nature of E4B support, a long-term strategy should explore options for fostering future competition. This could involve breaking down services into smaller, more competitive packages, encouraging new entrants, or developing government in-house capabilities where feasible. Proactive planning is essential to avoid perpetual sole-source reliance.
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 FIXED FEE (U)
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: $80,032,626
Exercised Options: $80,032,626
Current Obligation: $80,032,626
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: 2024-09-27
Current End Date: 2026-07-27
Potential End Date: 2026-07-27 00:00:00
Last Modified: 2026-01-14
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