Air Force awards $11.3M Engineering Support Services contract to Boeing for multiple platforms
Contract Overview
Contract Amount: $11,340,093 ($11.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-09-29
End Date: 2028-10-31
Contract Duration: 1,128 days
Daily Burn Rate: $10.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: ENGINEERING SUPPORT SERVICES FOR MULTIPLE PLATFORMS.
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $11.3 million to THE BOEING COMPANY for work described as: ENGINEERING SUPPORT SERVICES FOR MULTIPLE PLATFORMS. Key points: 1. Boeing secures a significant contract for engineering support. 2. The contract is for a duration of nearly four years. 3. Cost-plus-fixed-fee structure may lead to cost overruns. 4. Engineering services sector sees continued government investment.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type carries inherent risk for cost overruns, as the government pays actual costs plus a negotiated fee. Without clear benchmarks, assessing the fairness of the fee and total cost is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these engineering services.
Public Impact
Taxpayers may be overpaying due to the sole-source nature of the award. The long contract duration could lock in potentially inefficient pricing. Dependence on a single contractor for critical engineering support raises concerns. The specific platforms supported are not detailed, limiting public understanding of the necessity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of transparency on platforms supported
Positive Signals
- Long-term support for critical platforms
- Experienced contractor (Boeing)
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for defense and aerospace industries. Spending in this area is often high due to the complexity and specialized nature of the work, with benchmarks varying widely based on project scope.
Small Business Impact
The contract was awarded to The Boeing Company, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the fixed fee is reasonable and that the contractor is performing efficiently. The Air Force should document the justification for not competing this requirement.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and potentially increases cost.
- Cost-plus-fixed-fee contract type can lead to cost overruns.
- Lack of transparency regarding specific platforms and services.
- Potential for contractor lock-in due to non-competitive award.
Tags
engineering-services, department-of-defense, ok, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.3 million to THE BOEING COMPANY. ENGINEERING SUPPORT SERVICES FOR MULTIPLE PLATFORMS.
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 $11.3 million.
What is the period of performance?
Start: 2025-09-29. End: 2028-10-31.
What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Without specific details, it's difficult to assess if these criteria were met, but the agency must have a documented rationale, often found in Justification and Approval (J&A) documents, to deviate from competitive procurement.
How will the Air Force ensure cost control and value for money with a Cost Plus Fixed Fee (CPFF) contract awarded non-competitively?
With a CPFF contract, the government pays actual costs plus a fixed fee. To ensure value, the Air Force must rigorously monitor costs, establish clear performance metrics, and conduct thorough audits. The fixed fee itself should be negotiated based on market research and the complexity of the work to prevent excessive profit for the contractor.
What are the specific engineering support tasks and the platforms they relate to, and how do these align with Air Force modernization or sustainment priorities?
Understanding the specific tasks and platforms is crucial for assessing the strategic importance and necessity of this contract. If the support is for legacy systems without a clear modernization path, it might represent less value. Conversely, if it supports critical new platforms or essential sustainment, the investment is more justifiable, highlighting the need for detailed reporting on the contract's objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION 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: $11,340,093
Exercised Options: $11,340,093
Current Obligation: $11,340,093
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810617D0002
IDV Type: IDC
Timeline
Start Date: 2025-09-29
Current End Date: 2028-10-31
Potential End Date: 2028-10-31 00:00:00
Last Modified: 2025-09-24
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