DoD Awards $75.7M B-52 Engineering Services Contract to Boeing, Raising Competition Concerns
Contract Overview
Contract Amount: $75,681,627 ($75.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-01-01
End Date: 2026-12-31
Contract Duration: 729 days
Daily Burn Rate: $103.8K/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 $75.7 million to THE BOEING COMPANY for work described as: B-1 B-52 ENGINEERING SERVICES (BBES) Key points: 1. Significant contract value of $75.7 million for B-52 engineering services. 2. Sole-source award to The Boeing Company limits competitive pricing. 3. Potential risk of inflated costs due to lack of competition. 4. Spending falls within the Aircraft Manufacturing sector.
Value Assessment
Rating: questionable
The $75.7 million contract value for engineering services is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar specialized aircraft 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 bypasses the competitive process, potentially leading to higher prices and reduced innovation as there is no market pressure to offer the best value.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential engineering services, as the government does not benefit from price discovery through a bidding process.
Public Impact
Ensures continued operational readiness and sustainment of the B-52 bomber fleet. Supports critical engineering expertise for a legacy aircraft system. Potential for reduced taxpayer value due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for overpayment without competitive benchmarking.
- Contract duration of two years.
Positive Signals
- Maintains critical B-52 sustainment.
- Leverages incumbent expertise from Boeing.
Sector Analysis
This contract falls under the Aircraft Manufacturing sector, specifically supporting the sustainment and engineering of the B-52 bomber. Spending in this niche area is often concentrated with original equipment manufacturers due to specialized knowledge requirements.
Small Business Impact
The contract was awarded to The Boeing Company, a large aerospace corporation. There is no indication of subcontracting opportunities for small businesses in the provided data, suggesting limited direct small business participation.
Oversight & Accountability
The Department of the Air Force awarded this contract. Oversight will be crucial to ensure Boeing delivers on its engineering obligations and to monitor costs, especially given the sole-source nature of the award.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for cost overruns
- Limited transparency on pricing justification
- No explicit small business set-aside
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 $75.7 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 $75.7 million.
What is the period of performance?
Start: 2025-01-01. End: 2026-12-31.
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 involves unique capabilities or proprietary data held by the incumbent. The Air Force should have documented this justification. To ensure fair pricing, they may rely on historical pricing, should-cost analysis, or engage in rigorous negotiation with Boeing, though competitive benchmarking remains the most effective method.
What are the long-term risks associated with relying on a single provider for critical engineering services for the B-52 fleet?
The primary long-term risk is vendor lock-in and a potential decline in innovation. If Boeing is the sole provider, they may have less incentive to improve efficiency or offer cost reductions. This dependence also makes the Air Force vulnerable if Boeing faces financial difficulties or decides to discontinue certain services, potentially impacting the B-52's operational lifespan.
How does this contract contribute to the overall readiness and modernization efforts for the B-52 fleet?
This contract is essential for maintaining the operational readiness of the B-52 fleet by providing necessary engineering support for sustainment and potential upgrades. It ensures the aircraft remain airworthy and effective. However, without competitive pressure, the pace and cost-effectiveness of any modernization aspects supported by this contract might be suboptimal.
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: $84,521,904
Exercised Options: $84,521,904
Current Obligation: $75,681,627
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: 2026-12-31
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2025-12-22
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