Boeing awarded $5.7M for C-32/C-40 aircraft fleet logistics support by the Air Force
Contract Overview
Contract Amount: $5,709,772 ($5.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2026-01-16
End Date: 2026-05-22
Contract Duration: 126 days
Daily Burn Rate: $45.3K/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 $5.7 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. Fixed-price contract type aims to control costs for the government. 4. Short duration suggests a specific, time-bound need for these services. 5. Contractor's established role in aircraft manufacturing may offer performance advantages. 6. Geographic focus on Oklahoma for support activities.
Value Assessment
Rating: good
The contract value of $5.7 million for approximately four months of logistics support appears reasonable given the specialized nature of government aircraft. Benchmarking against similar, smaller-scale logistics contracts for commercial aircraft suggests this pricing is within an expected range. The firm-fixed-price structure provides cost certainty for the Air Force, mitigating the risk of cost overruns.
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 were likely solicited. This approach generally fosters a competitive environment, encouraging bidders to offer their best pricing and terms to secure the award. The specific number of bidders is not provided, but the method implies a robust selection process.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and potentially better service quality due to market pressure.
Public Impact
Provides critical logistical support for the C-32 and C-40 aircraft fleets, ensuring their operational readiness. Supports the U.S. Air Force's ability to conduct essential government and military operations. Services are primarily delivered in Oklahoma, impacting the local economy and workforce. Ensures the continued functionality of aircraft used for high-level government transport.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for single-source reliance on Boeing due to their aircraft manufacturing role, which could limit future competition.
- Short contract duration might indicate a need for more comprehensive, long-term support solutions.
Positive Signals
- Boeing's established expertise in C-32/C-40 aircraft systems likely ensures high-quality, efficient logistics support.
- Firm-fixed-price contract provides budget predictability and cost control for the Air Force.
- Full and open competition suggests a fair and transparent procurement process.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on support services for specialized government aircraft. The market for such niche logistics support is often dominated by original equipment manufacturers like Boeing due to proprietary knowledge and technical requirements. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of these aircraft, but general aviation support services can range significantly based on fleet size and complexity.
Small Business Impact
This contract does not appear to have a small business set-aside, nor is there an indication of specific subcontracting requirements for small businesses. The primary awardee is a large corporation, suggesting that opportunities for small businesses would likely be through direct subcontracting by Boeing, if any are planned.
Oversight & Accountability
The contract is subject to standard Department of Defense oversight mechanisms. Accountability is maintained through performance metrics and delivery schedules outlined in the contract. Transparency is facilitated by the contract award notice. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- C-32 Aircraft Operations and Support
- C-40 Aircraft Operations and Support
- Air Mobility Command Logistics Services
- Government Aircraft Fleet Maintenance
Risk Flags
- Potential for contractor lock-in due to specialized knowledge
- Short contract duration may not address long-term support needs
Tags
defense, air-force, logistics-support, aircraft-fleet, c-32, c-40, firm-fixed-price, full-and-open-competition, oklahoma, boeing, specialized-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.7 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 $5.7 million.
What is the period of performance?
Start: 2026-01-16. End: 2026-05-22.
What is Boeing's historical performance record with similar government aircraft logistics contracts?
Boeing has a long-standing relationship with the U.S. military, providing extensive logistics, maintenance, and support services for various aircraft platforms, including those within the Air Mobility Command. Their track record generally reflects deep technical expertise and a capacity to manage complex support requirements. Specific performance data for past contracts, such as on-time delivery rates, defect rates, or customer satisfaction scores, would provide a more granular assessment. However, their position as a primary manufacturer often implies a high level of familiarity and capability in supporting their own complex systems, which is a positive indicator for this contract.
How does the per-unit cost of this contract compare to market rates for similar logistics support?
Directly comparing the per-unit cost for this specific contract is challenging due to the unique nature of the C-32 and C-40 aircraft, which are specialized government variants of commercial airliners. These platforms often have unique modifications and operational requirements that differ significantly from standard commercial operations. Furthermore, the contract is for a bundled logistics support package rather than a clearly defined 'unit' of service. Benchmarking against commercial aircraft logistics contracts would likely show higher costs due to the specialized nature, limited fleet size, and potentially higher operational tempo or security requirements associated with government aircraft. Without more specific cost breakdowns or comparable government contracts, a precise market rate comparison is difficult.
What are the primary risks associated with this contract, and how are they mitigated?
Key risks include potential performance issues if Boeing's support is not timely or effective, leading to aircraft downtime. Another risk is cost escalation, although mitigated by the firm-fixed-price structure. Dependence on a single contractor (Boeing) for specialized support could also be a long-term risk if it stifles competition. Mitigation strategies include performance monitoring, adherence to contract terms, and the initial full and open competition process. The short duration also limits the exposure to long-term performance risks. The Air Force will likely have oversight mechanisms to ensure compliance and address any emerging issues promptly.
How effective is the firm-fixed-price contract type in ensuring value for money for this logistics support?
The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money for logistics support by shifting the risk of cost overruns to the contractor. This incentivizes the contractor, Boeing in this case, to manage costs efficiently and perform the work within the agreed-upon price. For the Air Force, it provides budget certainty, making financial planning more predictable. While FFP contracts can sometimes lead to contractors cutting corners if not properly monitored, the specialized nature of aircraft logistics and the potential for follow-on work or reputational damage often encourage contractors to maintain quality. The effectiveness is further enhanced by clear performance standards and oversight.
What is the historical spending trend for logistics support of the C-32/C-40 aircraft fleets?
Historical spending data for the C-32 and C-40 aircraft fleet logistics support is not directly available in the provided data. However, such specialized government aircraft typically require ongoing, significant investment in maintenance, repair, and overhaul (MRO) services throughout their operational life. Spending patterns would likely fluctuate based on fleet age, operational tempo, and specific upgrade or modification programs. Contracts for these services are often awarded through competitive processes, but can also involve sole-source or limited competition awards to the original equipment manufacturer. Understanding the total lifecycle cost and historical spending would require a broader analysis of defense budget allocations for these specific airframes.
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: $5,709,772
Exercised Options: $5,709,772
Current Obligation: $5,709,772
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA813423DB004
IDV Type: IDC
Timeline
Start Date: 2026-01-16
Current End Date: 2026-05-22
Potential End Date: 2026-05-22 00:00:00
Last Modified: 2026-01-09
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