DoD awards Boeing $5.88M for E4B Contractor Logistics Services through 2026
Contract Overview
Contract Amount: $5,877,505 ($5.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-08-06
End Date: 2026-06-30
Contract Duration: 693 days
Daily Burn Rate: $8.5K/day
Competition Type: NOT COMPETED
Pricing Type: TIME AND MATERIALS
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 $5.9 million to THE BOEING COMPANY for work described as: PURCHASING E4B CONTRACTOR LOGISTICS SERVICES Key points: 1. Contract awarded to a single, large aerospace company. 2. Logistics services for specialized aircraft are critical but often have limited competition. 3. Potential for cost overruns exists with Time and Materials pricing. 4. The sector for specialized aircraft support is niche and consolidated.
Value Assessment
Rating: fair
The $5.88M award for logistics services appears reasonable given the specialized nature of the E4B aircraft. However, without detailed cost breakdowns and comparison to similar specialized aircraft support contracts, a definitive value assessment is difficult. The Time and Materials pricing structure introduces risk.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition scenario. This lack of competition may have limited the government's ability to secure the best possible pricing and terms, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for specialized logistics services could result in higher expenditures than if multiple vendors had vied for the contract, impacting taxpayer value.
Public Impact
Ensures operational readiness of the E4B fleet, critical for national command and control. Supports highly specialized technical expertise required for unique aircraft systems. Potential for increased costs due to lack of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Time and Materials pricing
- Potential for cost creep
Positive Signals
- Ensures critical operational capability
- Supports specialized aircraft maintenance
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on specialized aircraft logistics. Spending in this area is often characterized by high technical barriers to entry and a limited number of qualified contractors, leading to less competitive environments.
Small Business Impact
The contract was awarded to The Boeing Company, a large aerospace firm. There is no indication that small businesses were involved in this specific award, which is common for highly specialized, large-scale defense contracts.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The Time and Materials contract type necessitates robust monitoring to control costs and ensure efficient service delivery to prevent potential overspending.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Time and Materials pricing structure
- Potential for cost overruns
- Reliance on a single contractor for critical services
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ok, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.9 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 $5.9 million.
What is the period of performance?
Start: 2024-08-06. End: 2026-06-30.
What specific cost drivers contribute to the high price of E4B contractor logistics services, and how are they justified?
The high cost is likely driven by the extreme specialization of the E4B aircraft, requiring unique technical expertise, proprietary parts, and stringent security protocols. Justification would involve detailed breakdowns of labor rates, specialized tooling, parts sourcing, and the limited pool of qualified personnel and facilities capable of supporting such a unique platform.
What are the risks associated with the Time and Materials pricing model for this contract?
The primary risk of a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for actual labor hours and material costs incurred. Without strong oversight and defined ceilings, contractors may have less incentive to control costs, potentially leading to higher overall expenditures than a fixed-price contract.
How does the lack of competition impact the government's ability to achieve best value for these critical logistics services?
The lack of competition significantly hinders the government's ability to achieve best value. Without competing offers, the government cannot leverage market forces to drive down prices or negotiate more favorable terms. This can result in paying a premium for services that might be available at a lower cost from other qualified providers if the market were open.
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: TIME AND MATERIALS (Y)
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: $5,877,505
Exercised Options: $5,877,505
Current Obligation: $5,877,505
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: 2024-08-06
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-01-09
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