DoD awards $48.6M to Boeing for B-52 Engineering Services, extending through 2028

Contract Overview

Contract Amount: $48,644,107 ($48.6M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2025-02-26

End Date: 2028-02-25

Contract Duration: 1,094 days

Daily Burn Rate: $44.5K/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 $48.6 million to THE BOEING COMPANY for work described as: B-1 B-52 ENGINEERING SERVICES (BBES) Key points: 1. Contract awarded to incumbent, The Boeing Company, for critical B-52 sustainment. 2. Significant contract value highlights the ongoing need for bomber fleet support. 3. Sole-source award raises questions about competition and potential cost efficiencies. 4. Long-term nature of the contract suggests sustained demand for these services.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed carefully. 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 limits price discovery and may result in higher costs compared to a competitive procurement.

Taxpayer Impact: Taxpayer funds are being used for a sole-source contract, potentially foregoing savings that could have been achieved through competition.

Public Impact

Ensures continued operational readiness of the B-52 bomber fleet. Supports critical engineering and sustainment functions for a key strategic asset. Potential for cost overruns due to sole-source nature and cost-plus contract type.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Long contract duration

Positive Signals

Supports critical defense asset
Incumbent contractor expertise

Sector Analysis

The aerospace and defense sector relies heavily on long-term sustainment contracts for aging platforms. This contract falls within the typical spending patterns for maintaining strategic aircraft like the B-52.

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 will likely manage any subcontracting.

Oversight & Accountability

The Department of the Air Force is responsible for oversight. The cost-plus fixed fee structure necessitates close monitoring of expenditures to ensure cost control and prevent waste.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition
Potential for cost overruns
Long-term reliance on sole-source provider
Aging aircraft sustainment challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.6 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 $48.6 million.

What is the period of performance?

Start: 2025-02-26. End: 2028-02-25.

What is the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities or proprietary knowledge held by the incumbent. Further investigation into the specific technical requirements and market research conducted by the Air Force is needed to understand why competition was deemed impractical or impossible, and to assess if any opportunities for future competition were missed.

How will the Air Force ensure cost control and prevent overruns under this Cost Plus Fixed Fee contract?

Effective oversight is crucial. The Air Force must implement rigorous monitoring of Boeing's incurred costs, establish clear performance metrics, and conduct regular audits. Robust negotiation of the fixed fee based on realistic cost projections and incentive structures tied to cost savings can also help mitigate risks associated with this contract type.

What is the long-term strategy for B-52 sustainment, and how does this contract align with it?

This contract appears to be a bridge or sustainment effort for the B-52 fleet. Understanding the Air Force's broader modernization or replacement plans for its bomber fleet is essential to determine if this significant investment aligns with future strategic goals or if it represents a stop-gap measure with potential for obsolescence.

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: $57,428,290

Exercised Options: $57,428,290

Current Obligation: $48,644,107

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