DoD awards $7.7M to Boeing for B-1/B-52 Engineering Services, extending through August 2028
Contract Overview
Contract Amount: $7,719,652 ($7.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-03-13
End Date: 2028-08-26
Contract Duration: 1,262 days
Daily Burn Rate: $6.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: B-1/B-52 ENGINEERING SERVICES
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $7.7 million to THE BOEING COMPANY for work described as: B-1/B-52 ENGINEERING SERVICES Key points: 1. Significant contract awarded to a single, large defense contractor. 2. Long-term engineering support for critical bomber platforms. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Limited competition raises questions about price discovery and value.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, while common for complex engineering, can lead to costs exceeding initial estimates. Benchmarking is difficult without detailed cost breakdowns, but the total award value suggests a substantial investment.
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 lack of competition limits the government's ability to secure the best possible price and may result in higher costs than if multiple vendors had bid.
Taxpayer Impact: The absence of competition could lead to taxpayers paying a premium for these essential engineering services.
Public Impact
Ensures continued operational readiness and modernization of the B-1 and B-52 bomber fleets. Supports high-skilled engineering jobs within the aerospace and defense sector. Potential for extended reliance on a single contractor for critical aircraft sustainment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration increases exposure to price changes.
Positive Signals
- Essential services for critical national defense assets.
- Award to established, experienced contractor.
- Long-term planning for bomber sustainment.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting aircraft manufacturing and maintenance. Spending benchmarks for engineering services on legacy platforms can vary widely based on complexity and required upgrades.
Small Business Impact
This contract does not appear to involve small business participation, as it is a sole-source award to a large prime contractor. Opportunities for small businesses would likely be through subcontracts awarded by Boeing.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. Given the sole-source nature and cost-plus contract type, robust oversight is crucial to ensure cost efficiency and prevent contractor overreach.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and potentially increases costs.
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Long contract duration may not reflect current market efficiencies.
- Lack of transparency on specific engineering tasks and cost drivers.
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 $7.7 million to THE BOEING COMPANY. B-1/B-52 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 $7.7 million.
What is the period of performance?
Start: 2025-03-13. End: 2028-08-26.
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 urgent needs that only one contractor can meet. Without further details, it's difficult to assess if alternative competitive strategies were explored. A thorough review of the justification is necessary to ensure fair pricing and prevent unnecessary costs to taxpayers.
How will the government ensure cost control and value for money under the Cost Plus Fixed Fee structure?
Effective cost control under a Cost Plus Fixed Fee contract relies on stringent government oversight, detailed cost tracking, and clear performance metrics. The government must actively monitor expenditures, validate costs, and ensure the fixed fee remains appropriate for the work performed. Regular audits and reviews are essential to identify potential inefficiencies or overcharges.
What is the long-term strategy for B-1/B-52 engineering support beyond this contract's duration?
Understanding the long-term strategy is vital to assess the overall value and potential future costs. This contract's duration suggests a need for sustained support, but it's important to know if this is part of a broader plan for platform modernization or sustainment, and whether future competitions are anticipated to ensure ongoing value.
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: $16,072,899
Exercised Options: $16,072,899
Current Obligation: $7,719,652
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: 2025-03-13
Current End Date: 2028-08-26
Potential End Date: 2028-08-26 00:00:00
Last Modified: 2025-12-18
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