DoD Awards Boeing $23.5M for E-4B Aircraft Logistics Support, Option Years 10 & 11
Contract Overview
Contract Amount: $23,491,306 ($23.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-12-11
End Date: 2026-11-30
Contract Duration: 354 days
Daily Burn Rate: $66.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: Defense
Official Description: E-4B CONTRACT LOGISTICS SUPPORT (CLS) OPTION YEARS 10 AND 11
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $23.5 million to THE BOEING COMPANY for work described as: E-4B CONTRACT LOGISTICS SUPPORT (CLS) OPTION YEARS 10 AND 11 Key points: 1. Contract awarded to a single, established provider for specialized aircraft. 2. Significant contract value for ongoing support of critical national defense assets. 3. Potential for cost overruns due to the nature of logistics support. 4. Sector is dominated by a few large aerospace and defense contractors.
Value Assessment
Rating: fair
The contract's Cost No Fee (CNF) structure means the government pays costs incurred plus a fixed fee. While this can incentivize efficiency, it also carries risk if costs are not well-managed by the contractor, as the government bears the brunt of cost increases.
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 negotiation leverage for the government, potentially leading to higher costs than if competitive bids were solicited.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these logistics services, as there is no market pressure to drive down prices.
Public Impact
Ensures continued operational readiness of the E-4B 'Doomsday Plane', a critical command and control asset. Supports national security by maintaining a vital piece of strategic communication infrastructure. The long-term nature of the contract highlights the specialized and enduring requirements for this aircraft fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost No Fee contract structure can lead to cost overruns.
- Lack of transparency in cost breakdown for logistics support.
Positive Signals
- Ensures continued operational capability of a critical national asset.
- Awarded to a known and experienced contractor for this specific platform.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts and auxiliary equipment manufacturing for logistics support. Spending in this area is often characterized by long-term contracts, high technical requirements, and limited competition due to specialized knowledge.
Small Business Impact
This contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, which is common for sole-source, specialized support contracts.
Oversight & Accountability
The contract's Cost No Fee structure requires diligent oversight from the Department of the Air Force to monitor contractor costs and ensure adherence to the agreement. The lack of competition necessitates robust performance metrics and accountability measures.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Cost No Fee contract type
- Potential for cost overruns
- Lack of competitive bidding
- Limited transparency on cost breakdown
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 $23.5 million to THE BOEING COMPANY. E-4B CONTRACT LOGISTICS SUPPORT (CLS) OPTION YEARS 10 AND 11
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 $23.5 million.
What is the period of performance?
Start: 2025-12-11. End: 2026-11-30.
What is the projected cost growth for these option years compared to previous years, and what factors are driving any changes?
Without historical cost data or specific projections for these option years, it's difficult to assess cost growth. However, the Cost No Fee structure means any cost increases are borne by the government. Factors like inflation, parts availability, and evolving maintenance needs could drive costs up. Further analysis would require access to the contractor's cost proposals and the government's cost estimates.
What specific risks are associated with the sole-source nature of this contract, and how are they being mitigated?
The primary risk of a sole-source contract is the potential for inflated pricing due to a lack of competitive pressure. Mitigation strategies could include rigorous negotiation of the fixed fee, detailed cost audits, and establishing clear performance metrics. The government might also explore options for future competition or alternative support solutions to reduce long-term sole-source reliance.
How does the performance of this logistics support contract impact the overall readiness and effectiveness of the E-4B fleet?
Effective logistics support is crucial for maintaining the operational readiness and effectiveness of the E-4B fleet. Consistent and timely provision of parts, maintenance, and technical expertise ensures the aircraft are available for their critical command and control missions. Any disruptions or deficiencies in this support could directly impact national security capabilities.
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: $143,310,506
Exercised Options: $97,818,820
Current Obligation: $23,491,306
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: 2025-12-11
Current End Date: 2026-11-30
Potential End Date: 2027-11-30 00:00:00
Last Modified: 2025-12-23
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