DoD Awards Boeing $5.6M for B-1/B-52 Engineering Services Amidst Limited Competition
Contract Overview
Contract Amount: $5,676,531 ($5.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-05-12
End Date: 2027-09-22
Contract Duration: 863 days
Daily Burn Rate: $6.6K/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 $5.7 million to THE BOEING COMPANY for work described as: B-1 B-52 ENGINEERING SERVICES (BBES) Key points: 1. Significant contract value for specialized aircraft engineering. 2. Sole reliance on Boeing raises competition concerns. 3. Long-term contract duration (2025-2027) requires ongoing scrutiny. 4. Focus on critical bomber sustainment highlights defense sector importance.
Value Assessment
Rating: fair
The contract value of $5.6M for engineering services appears reasonable given the specialized nature of B-1 and B-52 aircraft sustainment. Benchmarking against similar sole-source or limited-competition contracts for complex aerospace engineering would be necessary for a definitive assessment.
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 approach limits price discovery and potentially leads to higher costs compared to a competitive bidding process. The justification for sole-source is critical.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential engineering services, as market forces are not leveraged to drive down costs.
Public Impact
Ensures continued operational readiness of critical bomber fleets. Supports specialized technical expertise vital for aging aircraft. Potential for cost overruns due to sole-source nature. Impacts the Air Force's ability to maintain strategic airpower.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Potential for cost creep in Cost Plus Fixed Fee contracts.
- Long contract duration may not reflect evolving needs or technologies.
Positive Signals
- Addresses critical sustainment needs for strategic assets.
- Leverages incumbent contractor's specialized knowledge.
Sector Analysis
This contract falls within the Defense sector, specifically supporting aircraft manufacturing and maintenance. Spending benchmarks for specialized engineering services on legacy platforms like the B-1 and B-52 are typically high due to the unique expertise and limited number of qualified providers.
Small Business Impact
There is no indication of small business participation in this specific contract award. Given the sole-source nature and the specialized technical requirements, opportunities for small businesses may be limited unless subcontracting is mandated or pursued.
Oversight & Accountability
Oversight will be crucial to monitor costs and performance under this Cost Plus Fixed Fee contract, especially given the sole-source award. The Air Force must ensure robust contract management to prevent cost overruns and ensure value for taxpayer dollars.
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 type
- Limited competition
- Potential for cost overruns
- Long-term sustainment of aging aircraft
Tags
aircraft-manufacturing, department-of-defense, ok, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.7 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 $5.7 million.
What is the period of performance?
Start: 2025-05-12. End: 2027-09-22.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary data, or the lack of alternative sources. To ensure fair pricing, the Air Force should conduct a thorough price analysis, potentially using historical data, should-cost modeling, or independent government cost estimates. Regular performance reviews and cost audits are also essential to monitor expenditures and identify any inefficiencies.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for these engineering services?
The primary risk with CPFF contracts is that the contractor is reimbursed for all allowable costs plus a fixed fee, which incentivizes cost incurrence rather than cost control. This can lead to cost overruns if not managed diligently. The government bears the risk of cost increases, while the contractor has less incentive to minimize expenses beyond achieving the fixed fee. Robust oversight is critical to mitigate this.
How will the effectiveness of these engineering services be measured to ensure the long-term sustainment and readiness of the B-1 and B-52 fleets?
Effectiveness will be measured through key performance indicators (KPIs) tied to aircraft availability, mission capable rates, turnaround times for repairs and modifications, and the successful implementation of engineering changes or upgrades. Regular reporting on maintenance metrics, defect rates, and the impact of engineering support on operational readiness will be crucial. User feedback from Air Force maintenance and operational units will also provide valuable insights.
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: $5,676,531
Exercised Options: $5,676,531
Current Obligation: $5,676,531
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: 2025-05-12
Current End Date: 2027-09-22
Potential End Date: 2027-09-22 00:00:00
Last Modified: 2025-12-17
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