DoD awards Boeing $29.5M for E4B Contractor Logistics Services, raising questions on competition and value
Contract Overview
Contract Amount: $29,487,545 ($29.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-04-16
End Date: 2027-09-30
Contract Duration: 897 days
Daily Burn Rate: $32.9K/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 $29.5 million to THE BOEING COMPANY for work described as: PURCHASING E4B CONTRACTOR LOGISTICS SERVICES Key points: 1. Significant contract value for specialized logistics services. 2. Sole-source award to Boeing suggests limited market competition. 3. Potential for cost overruns due to cost-plus contract type. 4. Focus on critical aircraft support highlights national security implications.
Value Assessment
Rating: questionable
The contract type is Cost No Fee, which offers less incentive for cost control compared to fixed-price contracts. Benchmarking is difficult without more detailed cost breakdowns, but the duration and scope suggest a substantial investment.
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 for taxpayers.
Taxpayer Impact: The lack of competition for a significant contract value may result in suboptimal pricing and reduced taxpayer value.
Public Impact
Ensures continued operational readiness for critical E4B aircraft. Supports national security by maintaining vital command and control capabilities. Potential for increased costs due to sole-source nature of the award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Ensures critical aircraft support
- Long-term contract provides stability
Sector Analysis
This contract falls under defense logistics and support services, a critical sector for maintaining military readiness. Spending benchmarks in this area are highly variable depending on the specific platform and services required.
Small Business Impact
The data provided does not indicate any specific provisions or considerations for small business participation in this contract. The award to a large prime contractor like Boeing typically means subcontracting opportunities, but direct involvement is not specified.
Oversight & Accountability
Oversight will be crucial to ensure that the Cost No Fee structure does not lead to excessive spending and that the services provided meet the required standards for the E4B aircraft's critical mission.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for contractor inefficiency
- Limited transparency on pricing
- Dependence on a single contractor
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 $29.5 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 $29.5 million.
What is the period of performance?
Start: 2025-04-16. End: 2027-09-30.
What is the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without further details, it's difficult to assess if alternative solutions were thoroughly explored or if this award represents the most cost-effective path forward for the Department of Defense.
How will the Cost No Fee structure be managed to prevent cost overruns and ensure value for money?
Managing a Cost No Fee contract requires robust oversight and stringent reporting from the contractor. The government must actively monitor all incurred costs, ensure they are reasonable and allocable, and verify that the services delivered align with the contract's objectives. Performance metrics and regular audits are essential to mitigate risks associated with this contract type.
What is the expected impact of these logistics services on the operational readiness and mission effectiveness of the E4B fleet?
These services are expected to directly enhance the operational readiness and mission effectiveness of the E4B fleet by ensuring the aircraft are maintained, supported, and available for critical command and control missions. Reliable contractor logistics support is vital for the sustained operation of such complex and high-value assets.
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: $29,487,545
Exercised Options: $29,487,545
Current Obligation: $29,487,545
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: 2025-04-16
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-01-15
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