DoD Awards Boeing $13.5M for B-1/B-52 Engineering Services Through 2026
Contract Overview
Contract Amount: $13,486,103 ($13.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-01-05
End Date: 2026-07-09
Contract Duration: 916 days
Daily Burn Rate: $14.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: B-1 B-52 ENGINEERING SERVICES
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $13.5 million to THE BOEING COMPANY for work described as: B-1 B-52 ENGINEERING SERVICES Key points: 1. Significant contract value for specialized aircraft engineering. 2. Sole-source award to Boeing raises questions about competition. 3. Long-term contract duration (916 days) suggests ongoing needs. 4. Focus on legacy aircraft maintenance and modernization.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services 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 awarded sole-source to The Boeing Company. This limits price discovery and potentially leads to higher costs compared to a competitive bidding process. The justification for a sole-source award needs careful scrutiny.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential engineering services.
Public Impact
Ensures continued operational readiness of critical bomber fleets. Supports high-skilled engineering jobs within the aerospace sector. Potential for cost inefficiencies due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Limited transparency on cost drivers
Positive Signals
- Supports critical defense assets
- Long-term engagement with incumbent provider
Sector Analysis
This contract falls within the Defense sector, specifically supporting legacy aircraft sustainment. Spending on aircraft manufacturing and related engineering services is substantial, with major contractors like Boeing dominating the market.
Small Business Impact
This contract does not appear to involve small business participation, as it is a sole-source award to a large prime contractor. Opportunities for small businesses would likely be through subcontracting, which is not detailed here.
Oversight & Accountability
Oversight will be crucial to ensure Boeing manages costs effectively under the Cost Plus Fixed Fee structure and delivers the required engineering support for the B-1 and B-52 aircraft.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type carries inherent cost overrun risk.
- Lack of detailed cost breakdown hinders value assessment.
- Long contract duration increases exposure to changing requirements.
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 $13.5 million to THE BOEING COMPANY. B-1 B-52 ENGINEERING 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 $13.5 million.
What is the period of performance?
Start: 2024-01-05. End: 2026-07-09.
What is the specific justification for awarding this contract sole-source to Boeing, and has an alternatives analysis been performed?
The justification for a sole-source award typically involves unique capabilities, proprietary data, or urgent needs where only one source can reasonably fulfill the requirement. An alternatives analysis would assess if other qualified sources exist or could be developed. Without this information, it's difficult to ascertain if the government fully explored competitive options.
How does the estimated cost of this contract compare to historical spending on similar engineering services for these aircraft platforms?
Comparing this $13.5 million contract to historical spending requires access to past contract data for B-1 and B-52 engineering services. Factors like inflation, scope changes, and technological updates influence costs. A detailed analysis would involve benchmarking against similar contracts awarded over time to identify any significant deviations or cost escalations.
What mechanisms are in place to ensure cost control and prevent overruns within the Cost Plus Fixed Fee structure for this contract?
Cost Plus Fixed Fee contracts require robust government oversight. Mechanisms include detailed review of incurred costs, negotiation of the fixed fee based on realistic estimates, and clear performance metrics. The government contracting officer must actively monitor expenditures and contractor performance to ensure the fee remains fair and costs are controlled.
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: $14,251,761
Exercised Options: $14,251,761
Current Obligation: $13,486,103
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: 2024-01-05
Current End Date: 2026-07-09
Potential End Date: 2026-07-09 00:00:00
Last Modified: 2025-12-01
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)