Boeing awarded $10.2M for C-32/C-40 aircraft fleet logistics support by the Air Force

Contract Overview

Contract Amount: $10,245,752 ($10.2M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2025-03-01

End Date: 2026-02-28

Contract Duration: 364 days

Daily Burn Rate: $28.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACTOR LOGISTICS SUPPORT FOR THE C-32/C-40 AIRCRAFT FLEETS

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $10.2 million to THE BOEING COMPANY for work described as: CONTRACTOR LOGISTICS SUPPORT FOR THE C-32/C-40 AIRCRAFT FLEETS Key points: 1. Contract focuses on essential logistics support for specialized government aircraft. 2. Full and open competition indicates a potentially competitive bidding process. 3. Firm-fixed-price contract type shifts cost risk to the contractor. 4. Contract duration of one year suggests a need for ongoing, but not indefinite, support. 5. The award is a delivery order under a larger contract vehicle. 6. Geographic location of Oklahoma may indicate maintenance or operational hubs.

Value Assessment

Rating: good

The contract value of $10.2 million for one year of logistics support for the C-32/C-40 aircraft fleets appears reasonable given the specialized nature of the aircraft and the comprehensive support required. Benchmarking against similar contracts for specialized aviation support is challenging without more detailed service scope, but the firm-fixed-price structure suggests the government has negotiated a defined cost. The award to Boeing, the likely manufacturer or integrator of these platforms, implies a deep understanding of the systems, potentially leading to efficient support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. This method is generally preferred for maximizing competition and achieving the best value for the government. The number of bidders is not specified, but the process itself implies a robust market for these specialized logistics services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and ensures that the government is not locked into a single provider, potentially leading to cost savings.

Public Impact

The primary beneficiaries are the Department of the Air Force and its personnel who rely on the C-32 and C-40 aircraft for critical missions. Services delivered include logistics support, which encompasses maintenance, repair, parts management, and technical assistance for the aircraft fleets. The geographic impact is likely concentrated around Air Force bases or operational locations where these aircraft are stationed or maintained, with Oklahoma being a specified location. Workforce implications may include the need for skilled technicians and logistics personnel, both within the contractor's organization and potentially within the Air Force to manage the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for sole-source reliance on Boeing for future sustainment if this contract is a precursor to longer-term agreements.
Dependence on a single contractor for critical logistics could pose risks if the contractor faces financial or operational disruptions.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
Firm-fixed-price contract type aligns incentives for cost control with the contractor.
Boeing's established expertise with these aircraft platforms suggests a high likelihood of effective service delivery.

Sector Analysis

The aerospace and defense sector, particularly the segment focused on aircraft sustainment and logistics, is characterized by high barriers to entry due to specialized knowledge, certifications, and capital investment. Government contracts for specialized aircraft like the C-32 (often a Boeing 757 variant) and C-40 (often a Boeing 737 variant) are typically awarded to original equipment manufacturers or highly specialized support providers. Spending in this area is driven by the need to maintain the operational readiness of unique government fleets, which often have limited civilian counterparts.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor is The Boeing Company, a large aerospace firm. While there are no direct set-aside requirements for small businesses on this specific award, large prime contractors are often required to subcontract a percentage of their work to small businesses under broader federal acquisition regulations. The extent to which Boeing will utilize small business subcontractors for this logistics support is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Air Force contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

C-130 Hercules Logistics Support
Specialized Aircraft Maintenance Services
Government Aircraft Fleet Management
Air Mobility Command Support Contracts

Risk Flags

Potential for vendor lock-in due to specialized nature of aircraft.
Dependence on a single large prime contractor for critical support.
Limited visibility into specific performance metrics without further data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 million to THE BOEING COMPANY. CONTRACTOR LOGISTICS SUPPORT FOR THE C-32/C-40 AIRCRAFT FLEETS

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 $10.2 million.

What is the period of performance?

Start: 2025-03-01. End: 2026-02-28.

What is the historical spending trend for logistics support of the C-32 and C-40 aircraft fleets?

Analyzing historical spending for the C-32 and C-40 aircraft fleets requires accessing detailed contract data over multiple fiscal years. Typically, such specialized aircraft, used for VIP transport and other government missions, would have recurring sustainment contracts. Spending patterns would likely reflect the operational tempo, age of the aircraft, and any major upgrade or maintenance cycles. Without specific historical data, it's difficult to provide precise figures, but one would expect consistent annual expenditures for parts, labor, and technical support, potentially fluctuating based on specific fleet needs or program changes. The current $10.2 million award for a one-year period provides a benchmark for current sustainment costs.

How does the awarded amount compare to similar logistics support contracts for comparable government aircraft?

Comparing this $10.2 million award requires identifying contracts for logistics support of similarly specialized government aircraft, such as other VIP transport planes or unique mission platforms. Factors influencing cost include the aircraft's complexity, age, operational hours, and the scope of services (e.g., depot-level maintenance, component repair, supply chain management). Given that the C-32 and C-40 are Boeing platforms, contracts with Boeing for similar aircraft types (e.g., other 737 or 757 derivatives used by government agencies) would be the most relevant benchmarks. The firm-fixed-price nature and one-year duration suggest a defined scope and risk transfer, which are positive indicators for value, assuming the scope is comprehensive.

What are the key performance indicators (KPIs) expected for this logistics support contract?

Key performance indicators (KPIs) for this contract would likely focus on ensuring the operational readiness and availability of the C-32 and C-40 aircraft fleets. Common KPIs in aviation logistics include aircraft mission capable rates, on-time delivery of parts and services, turnaround time for repairs, and adherence to maintenance schedules. For a firm-fixed-price contract, meeting these performance standards is crucial for the contractor to achieve profitability. The Air Force would monitor these metrics to ensure the contractor is fulfilling its obligations effectively and that the aircraft are available for their intended missions without undue delays or cost overruns.

What is Boeing's track record in providing logistics support for government aviation platforms?

The Boeing Company has an extensive and long-standing track record in providing logistics support for a wide array of government aviation platforms, including numerous military aircraft. Their experience spans decades and covers everything from commercial derivatives used by government agencies (like the C-32 and C-40) to highly specialized military aircraft. This includes sustainment, maintenance, repair and overhaul (MRO), supply chain management, and technical data services. Given their role as a primary manufacturer for many of these platforms, their inherent knowledge of the systems often positions them as a preferred or sole-source provider for certain types of support, though they also compete in open environments.

What are the potential risks associated with relying on a single contractor for specialized aircraft logistics?

Relying on a single contractor, even one as established as Boeing, for specialized aircraft logistics presents several potential risks. These include a lack of competitive pressure on pricing for future contract renewals or modifications, which could lead to higher costs for taxpayers. There's also the risk of vendor lock-in, where the government becomes dependent on the contractor's proprietary knowledge, parts, or processes, making it difficult and expensive to switch providers. Operational risks include potential disruptions to the contractor's business (e.g., labor disputes, financial instability, or supply chain issues) that could directly impact aircraft availability and mission readiness. Furthermore, a single contractor may have less incentive to innovate or improve services compared to a competitive environment.

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: $10,314,090

Exercised Options: $10,314,090

Current Obligation: $10,245,752

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA813423DB004

IDV Type: IDC

Timeline