Boeing awarded $30.5M for B-52 engineering services, a sole-source contract for sustainment
Contract Overview
Contract Amount: $30,512,250 ($30.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-03-04
End Date: 2026-04-23
Contract Duration: 415 days
Daily Burn Rate: $73.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
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 $30.5 million to THE BOEING COMPANY for work described as: B-1 B-52 ENGINEERING SERVICES (BBES) Key points: 1. Contract awarded to incumbent for critical B-52 sustainment. 2. Sole-source award raises questions about price competition. 3. Long-term contract duration suggests ongoing need for specialized support. 4. Fixed-price contract type shifts risk to the contractor. 5. Focus on engineering services indicates a need for technical expertise. 6. Geographic concentration in Oklahoma for contract performance.
Value Assessment
Rating: fair
The contract value of $30.5 million for B-52 engineering services appears reasonable given the specialized nature of supporting a legacy aircraft fleet. However, without competitive bidding, it is difficult to benchmark the pricing against market alternatives or assess if the government received the best possible value. The fixed-price nature of the contract provides some cost certainty, but the absence of competition limits the ability to verify cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, The Boeing Company, was solicited. This approach is typically used when a specific contractor possesses unique capabilities or when urgency precludes a competitive process. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs for the government.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without multiple bids, there is less incentive for the contractor to offer the lowest possible price.
Public Impact
The U.S. Air Force benefits from continued engineering support for the B-52 bomber fleet. Specialized engineering services ensure the operational readiness and longevity of critical strategic assets. The contract supports highly skilled engineering jobs, primarily in Oklahoma. This contract directly contributes to national defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potential cost savings.
- Reliance on a single contractor for critical sustainment could create vendor lock-in.
- Long-term nature of the contract may not fully account for evolving technological needs.
Positive Signals
- Award to incumbent contractor ensures continuity of essential B-52 engineering support.
- Fixed-price contract type provides cost predictability for the Air Force.
- Boeing's established expertise with the B-52 platform minimizes technical risk.
Sector Analysis
The aerospace and defense sector is characterized by long product lifecycles and high barriers to entry, particularly for legacy platforms like the B-52. This contract falls within the aircraft manufacturing and maintenance sub-sector, where specialized engineering services are crucial for ensuring the continued operational capability of aging fleets. Comparable spending in this area often involves sustainment, upgrades, and depot-level maintenance for strategic aircraft.
Small Business Impact
This contract does not appear to have a small business set-aside component, as it was awarded directly to The Boeing Company. There is no explicit information provided regarding subcontracting opportunities for small businesses. The focus on specialized engineering services for a major defense platform suggests that prime contract work is likely to be performed by large, experienced aerospace firms.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. The fixed-price nature of the contract provides a degree of accountability by capping costs. Transparency may be limited due to the sole-source nature of the award, but contract performance metrics and reporting requirements should be subject to standard government oversight procedures.
Related Government Programs
- B-52 Bomber Sustainment Programs
- Air Force Aircraft Maintenance Contracts
- Aerospace Engineering Services
- Department of Defense Legacy Aircraft Support
Risk Flags
- Sole-source award
- Potential for cost overruns without competition
- Reliance on legacy platform sustainment
Tags
defense, department-of-defense, air-force, b-52, engineering-services, aircraft-manufacturing, firm-fixed-price, sole-source, delivery-order, boeing, oklahoma, legacy-aircraft
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.5 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 $30.5 million.
What is the period of performance?
Start: 2025-03-04. End: 2026-04-23.
What is Boeing's track record with B-52 engineering and sustainment contracts?
The Boeing Company has a long-standing relationship with the B-52 Stratofortress, having been the original manufacturer. Their track record with B-52 engineering and sustainment is extensive, encompassing decades of support, upgrades, and maintenance. This includes various modifications and life-extension programs aimed at keeping the aging fleet operational. Given their deep institutional knowledge and historical involvement, Boeing is uniquely positioned to provide these specialized services. Past performance reviews and contract histories would provide more granular detail on their specific successes and any challenges encountered on previous B-52 related contracts.
How does the $30.5 million value compare to similar B-52 sustainment contracts?
Directly comparing the $30.5 million value of this specific delivery order to other B-52 sustainment contracts is challenging without access to detailed contract databases and specific scopes of work. However, sustainment for legacy aircraft like the B-52 typically involves significant, multi-year investments. Contracts for engineering services, depot maintenance, and component upgrades can range from millions to hundreds of millions of dollars annually, depending on the scope and duration. The value of this contract appears to be within a reasonable range for specialized engineering support over its period of performance, but a true benchmark would require analyzing contracts with identical or highly similar service requirements and durations.
What are the primary risks associated with this sole-source contract?
The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competitive bidding. Without competing offers, the government has less leverage to negotiate the best possible price. Another risk is vendor lock-in, where the reliance on a single provider for critical services can make it difficult and costly to switch contractors in the future, even if performance or pricing becomes unsatisfactory. Furthermore, a sole-source award might reduce the incentive for the contractor to innovate or improve efficiency aggressively, as they face no direct competition for this specific work.
How effective is the fixed-price contract type in managing costs for this B-52 engineering service?
The Firm Fixed Price (FFP) contract type is generally effective in managing costs by shifting the risk of cost overruns to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides the government with cost certainty and predictability. For engineering services, where the scope might be well-defined, FFP can incentivize the contractor to be efficient and manage their resources effectively to maximize profit. However, if the scope is not perfectly defined or unforeseen issues arise, the contractor may seek change orders, which could increase the total cost.
What is the historical spending trend for B-52 engineering and sustainment services?
Historical spending on B-52 engineering and sustainment services has been substantial and is likely to remain significant due to the platform's extended service life. The U.S. Air Force has consistently invested in maintaining and modernizing the B-52 fleet to ensure its strategic relevance. Annual expenditures for sustainment, including engineering, maintenance, upgrades, and parts, have historically run into the hundreds of millions of dollars. This spending is driven by the need to address aging components, incorporate new technologies, and ensure compliance with evolving operational requirements and safety standards. The trend indicates a sustained, long-term commitment to the B-52 program.
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: FIRM FIXED PRICE (J)
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: $35,311,340
Exercised Options: $30,512,250
Current Obligation: $30,512,250
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: 2025-03-04
Current End Date: 2026-04-23
Potential End Date: 2026-04-23 00:00:00
Last Modified: 2025-12-12
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