Boeing awarded $12.25M for C32A/C40B/C Contractor Logistics Services by the Air Force

Contract Overview

Contract Amount: $12,253,701 ($12.3M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2025-08-18

End Date: 2026-02-28

Contract Duration: 194 days

Daily Burn Rate: $63.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: C32A C40B/C CONTRACTOR LOGISTICS SERVICES

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $12.3 million to THE BOEING COMPANY for work described as: C32A C40B/C CONTRACTOR LOGISTICS SERVICES Key points: 1. Contract awarded to a single, large incumbent provider, raising questions about potential price efficiencies. 2. The contract duration of 194 days suggests a focus on immediate operational needs rather than long-term sustainment. 3. Fixed-price contract type generally shifts risk to the contractor, but scope clarity is crucial for value. 4. Limited competition may impact the government's ability to secure the most cost-effective solutions. 5. Performance is rated 'OK', indicating satisfactory but not exceptional service delivery. 6. The contract is for logistics services, a critical but often complex area of defense operations.

Value Assessment

Rating: fair

Benchmarking the value of this $12.25 million contract is challenging without detailed service scope and performance metrics. However, the award to a single, established contractor for a relatively short duration (194 days) suggests a focus on continuity of existing services. The fixed-price nature is positive for budget certainty, but the absence of competitive pressure could lead to less aggressive pricing than might be achieved in a more open market. Further analysis would require comparing the unit costs of specific logistics tasks against industry standards or historical government contracts for similar support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive indicator for price discovery. However, the data does not specify the number of bids received. A high number of bidders typically leads to more competitive pricing. If only a few bids were submitted, even under full and open competition, the price advantage might be limited.

Taxpayer Impact: Full and open competition theoretically maximizes taxpayer value by encouraging multiple vendors to offer their best prices. The extent of this benefit depends on the actual number of bids received and the level of innovation proposed.

Public Impact

The primary beneficiaries are the Department of the Air Force, ensuring continued operational readiness for C32A and C40B/C aircraft. Services delivered include contractor logistics support, crucial for maintaining aircraft availability and mission capability. The geographic impact is likely concentrated around Air Force bases where these aircraft are operated and maintained. Workforce implications may include the continued employment of specialized technical and logistics personnel by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for complacency from incumbent contractor due to long-standing relationship.
Risk of cost overruns if the fixed-price scope is not precisely defined and managed.
Limited visibility into the efficiency of the contractor's internal operations.

Positive Signals

Award to a single, experienced contractor can ensure stability and continuity of critical services.
Fixed-price contract type shifts performance risk to the contractor.
The contractor, Boeing, has a strong track record in aerospace and defense logistics.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on contractor logistics support for specialized aircraft. The market for such services is dominated by a few large, established aerospace companies. Spending in this area is driven by the need to maintain complex military assets, often involving proprietary technologies and specialized maintenance requirements. Comparable spending benchmarks would typically involve analyzing other sustainment contracts for similar aircraft types or fleets.

Small Business Impact

The contract data indicates that small business participation is not a primary focus, as the award is to a large prime contractor (The Boeing Company) and does not explicitly mention small business set-asides. There is no indication of subcontracting plans for small businesses within the provided data. This suggests that the direct impact on the small business ecosystem for this specific contract may be minimal, unless Boeing actively engages small businesses for specialized support not captured in this summary.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to delivery. Transparency is generally facilitated through contract award databases, though detailed operational oversight is internal to the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Sustainment Programs
Air Mobility Command Logistics
Defense Contractor Support Services
Fleet Readiness Programs

Risk Flags

Potential for vendor lock-in due to incumbent status.
Limited competition may reduce price discovery.
Performance rating of 'OK' suggests room for improvement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.3 million to THE BOEING COMPANY. C32A C40B/C 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 $12.3 million.

What is the period of performance?

Start: 2025-08-18. End: 2026-02-28.

What is the historical spending trend for contractor logistics services for the C32A and C40B/C aircraft fleet?

Analyzing historical spending for C32A and C40B/C contractor logistics services requires accessing detailed contract databases over several fiscal years. Typically, such sustainment contracts are awarded on a multi-year basis or through a series of task orders against indefinite-delivery/indefinite-quantity (IDIQ) vehicles. Fluctuations in spending can be attributed to factors such as aircraft utilization rates, major maintenance cycles, fleet modernization efforts, and changes in operational tempo. A significant increase in spending might indicate a growing need for support or less competitive pricing over time, while a decrease could suggest improved efficiency, reduced operational demands, or a shift towards organic Air Force maintenance capabilities. Without specific historical data, it's difficult to establish a precise trend, but consistent, substantial investment is generally required for specialized aircraft sustainment.

How does the per-unit cost of this contract compare to similar logistics support contracts for other government aircraft?

Directly comparing the per-unit cost of this $12.25 million contract for C32A/C40B/C logistics services to other government aircraft contracts is complex due to variations in aircraft type, age, complexity, mission requirements, and the scope of services provided. The C32A (Boeing 757) and C40B/C (Boeing 737 variants) are VIP and multi-mission transport aircraft, respectively. Their logistics needs might differ significantly from tactical fighter jets or large transport planes. A meaningful comparison would necessitate isolating specific services (e.g., scheduled maintenance, unscheduled repairs, spare parts provisioning) and normalizing costs based on flight hours, maintenance man-hours, or aircraft availability rates. Given that this is a fixed-price contract awarded under full and open competition, the pricing is expected to be market-driven, but without detailed breakdowns of labor rates, material costs, and overhead, a precise benchmark against other contracts remains elusive.

What are the key performance indicators (KPIs) used to assess the 'OK' performance rating for The Boeing Company on this contract?

The 'OK' performance rating signifies that The Boeing Company is meeting the minimum acceptable standards outlined in the contract for its C32A/C40B/C Contractor Logistics Services. While the specific KPIs are not detailed in the provided data, typical metrics for such contracts often include aircraft availability rates (ensuring a certain percentage of the fleet is mission-capable), on-time delivery of parts and services, response times for unscheduled maintenance, adherence to maintenance schedules, and quality of work (e.g., defect rates after maintenance). An 'OK' rating suggests that while these metrics are being met, there is likely room for improvement to achieve higher performance levels, such as 'Exceptional' or 'Very Good'. The contracting officer's representative (COR) is responsible for monitoring these KPIs and providing formal performance evaluations.

What is the risk associated with relying on a single, incumbent contractor for these critical logistics services?

Relying on a single, incumbent contractor like The Boeing Company for critical logistics services presents several risks. Firstly, there's a potential for complacency, where the contractor may become less motivated to innovate or offer competitive pricing due to a lack of direct competition. Secondly, dependency risk arises; if the contractor faces financial difficulties, operational disruptions, or decides to exit the market, it could severely impact the government's ability to maintain the C32A/C40B/C fleet. Thirdly, knowledge transfer risk exists; the government may not develop sufficient in-house expertise to manage or perform these services independently if the contract is terminated or significantly altered. While the current contract was awarded under full and open competition, the long-term reliance on one provider warrants careful monitoring of performance, pricing, and market dynamics to mitigate these potential downsides.

What is the estimated value of the contract over its full duration, and how does this compare to the annual spending for similar services?

The provided data indicates a total award amount of $12,253,700.66 for this specific contract, with an end date of February 28, 2026. The duration is approximately 194 days (roughly 6.5 months). This suggests that the stated amount is the total value for this delivery order, not an annualized figure. To estimate annual spending, one would need to extrapolate this value over a 12-month period, which would yield approximately $22.5 million annually if the same rate were maintained. However, this is a simplification, as contract values can fluctuate based on demand and specific task orders. Comparing this to 'similar services' requires identifying other contracts for logistics support of comparable aircraft types or defense platforms. Without that comparative data, it's difficult to definitively state whether $12.25 million for ~6.5 months (or an extrapolated $22.5 million annually) is high or low relative to the market.

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: $12,253,701

Exercised Options: $12,253,701

Current Obligation: $12,253,701

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA813423DB004

IDV Type: IDC

Timeline