DoD awards $32M to Boeing for B-1/B-52 Engineering Services, extending through January 2026
Contract Overview
Contract Amount: $32,095,103 ($32.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-12-16
End Date: 2026-01-30
Contract Duration: 1,141 days
Daily Burn Rate: $28.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: B-1/B-52 ENGINEERING SERVICES (BBES)
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $32.1 million to THE BOEING COMPANY for work described as: B-1/B-52 ENGINEERING SERVICES (BBES) Key points: 1. Significant contract awarded to a single, large defense contractor. 2. Focus on critical bomber aircraft sustainment and modernization. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Limited competition raises questions about price discovery and value for money.
Value Assessment
Rating: questionable
The contract is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Benchmarking against similar engineering support contracts for legacy aircraft is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This lack of competition limits the government's ability to ensure the best possible price and terms through market forces.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for these essential engineering services, as there was no competitive pressure to drive down costs.
Public Impact
Ensures continued operational readiness for critical B-1 and B-52 bomber fleets. Supports the Air Force's long-term strategic bomber sustainment goals. Potential impact on future modernization programs if costs escalate. Highlights reliance on incumbent contractors for complex defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Lack of transparency in cost build-up.
Positive Signals
- Essential services for critical bomber aircraft.
- Award to a known, experienced contractor.
- Supports ongoing Air Force readiness.
Sector Analysis
This contract falls within the Defense sector, specifically supporting aircraft manufacturing and maintenance. Spending benchmarks for engineering services on legacy platforms can vary widely based on complexity and required upgrades.
Small Business Impact
This contract was awarded directly to The Boeing Company and does not appear to include specific provisions or set-asides for small businesses. The prime contractor is a large aerospace firm.
Oversight & Accountability
Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure that costs remain reasonable and justified throughout the contract's duration. The Air Force must actively monitor performance and expenditures.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award.
- Cost Plus Fixed Fee contract.
- Potential for cost escalation.
- Long contract duration.
- Lack of competitive benchmarking.
Tags
aircraft-manufacturing, department-of-defense, ok, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.1 million to THE BOEING COMPANY. B-1/B-52 ENGINEERING SERVICES (BBES)
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 $32.1 million.
What is the period of performance?
Start: 2022-12-16. End: 2026-01-30.
What is the estimated total cost if the contract reaches its maximum value, and how does this compare to historical spending on similar services?
The provided data shows an award amount of $32,095,103, but the contract duration is 1141 days, suggesting this is an initial or ceiling value. Without a detailed cost breakdown or comparison to similar contracts for legacy bomber sustainment, it's difficult to assess if this represents good value. Historical data on B-1/B-52 sustainment would be needed for a robust benchmark.
What specific risks are associated with the Cost Plus Fixed Fee (CPFF) contract type for these engineering services, and how are they being mitigated?
The primary risk with CPFF is the contractor's incentive to increase costs to maximize profit, as the fixed fee remains constant. Mitigation requires stringent government oversight, detailed cost tracking, and clear performance metrics. The Air Force must ensure robust auditing and validation processes are in place to prevent cost overruns and ensure efficient service delivery.
How effective is the sole-source award strategy in ensuring the long-term sustainment and modernization of the B-1 and B-52 fleets?
While a sole-source award to Boeing leverages their established expertise with these specific aircraft, it bypasses the potential benefits of competition, such as innovation and cost reduction. The effectiveness hinges on Boeing's performance and the government's ability to negotiate favorable terms and maintain oversight. Long-term effectiveness may be limited if competitive alternatives are not explored for future requirements.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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: $32,095,103
Exercised Options: $32,095,103
Current Obligation: $32,095,103
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810719D0001
IDV Type: IDC
Timeline
Start Date: 2022-12-16
Current End Date: 2026-01-30
Potential End Date: 2026-01-30 00:00:00
Last Modified: 2026-01-05
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)