DoD Awards Boeing $24M for B-1 Engineering Services, Sole-Source Contract
Contract Overview
Contract Amount: $24,090,701 ($24.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-01-01
End Date: 2025-12-31
Contract Duration: 364 days
Daily Burn Rate: $66.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: B-1 ENGINEERING SERVICES
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $24.1 million to THE BOEING COMPANY for work described as: B-1 ENGINEERING SERVICES Key points: 1. Significant contract value of $24.09 million awarded to a single large business. 2. Sole-source award raises questions about competition and potential price overruns. 3. Focus on B-1 bomber engineering services indicates a critical, specialized need. 4. Contract duration of one year suggests a focused, short-term requirement.
Value Assessment
Rating: questionable
The contract value of $24.09 million for one year of engineering services appears high, especially given the sole-source nature. Without competitive bids, it's difficult to assess if this price is aligned with market rates for similar specialized engineering support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to The Boeing Company. This method limits price discovery and competition, potentially leading to higher costs for taxpayers as there's no benchmark from competing offers.
Taxpayer Impact: The sole-source award for a substantial amount may result in taxpayers paying a premium for engineering services that could potentially be procured at a lower cost through a competitive process.
Public Impact
Taxpayers may be overpaying due to the lack of competition. The B-1 bomber fleet's operational readiness could be impacted by the quality and timeliness of these engineering services. Reliance on a single contractor for critical engineering support poses a risk to long-term program stability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Reliance on incumbent
Positive Signals
- Addresses critical engineering needs for a key defense asset
- Contract awarded to a known, experienced provider
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting aircraft manufacturing and maintenance. Spending in this area is often characterized by high R&D costs, long product lifecycles, and significant reliance on a few prime contractors.
Small Business Impact
The contract was awarded to The Boeing Company, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting limited opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Department of Defense to ensure that the services provided are necessary, performed efficiently, and that the pricing remains reasonable throughout the contract period.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competitive bidding.
- High contract value for a single year of service.
- Dependency on one contractor for critical support.
- Lack of transparency regarding specific engineering needs.
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 $24.1 million to THE BOEING COMPANY. B-1 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 $24.1 million.
What is the period of performance?
Start: 2025-01-01. End: 2025-12-31.
What specific engineering challenges or upgrades necessitate a sole-source award for the B-1 bomber program at this time?
The specific engineering challenges requiring a sole-source award are not detailed in the provided data. Typically, such awards are justified by unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Further investigation into the justification documentation would be needed to understand the precise technical or programmatic reasons.
How does the $24 million cost compare to historical engineering support contracts for the B-1 bomber or similar aircraft?
Without historical data or benchmarks for comparable B-1 bomber engineering support contracts, it is difficult to definitively assess the value. However, $24 million for a single year of specialized engineering services, especially sole-source, raises a flag. A comparative analysis against previous contracts or similar aircraft programs would be necessary to determine if this represents a fair and reasonable price.
What measures are in place to ensure the effectiveness and efficiency of Boeing's engineering services under this sole-source contract?
Effectiveness and efficiency are typically ensured through performance metrics, milestones, and regular progress reviews outlined in the contract. The Air Force contracting officers and program managers are responsible for monitoring Boeing's performance against these requirements. However, the lack of competition inherently reduces the external pressure for efficiency, making internal oversight particularly crucial.
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: FIXED PRICE INCENTIVE (L)
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: $24,225,245
Exercised Options: $24,225,245
Current Obligation: $24,090,701
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: 2025-01-01
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-08-22
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