Boeing Awarded $23.4M for A-10 Wing Replacement Engineering Services by Air Force

Contract Overview

Contract Amount: $23,391,726 ($23.4M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2007-09-17

End Date: 2010-10-31

Contract Duration: 1,140 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: ENGINEERING SERVICES TO SUPPORT THE A-10 WING REPLACEMENT PROGRAM

Place of Performance

Location: SAINT LOUIS, ST. LOUIS (CITY) County, MISSOURI, 63101

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $23.4 million to THE BOEING COMPANY for work described as: ENGINEERING SERVICES TO SUPPORT THE A-10 WING REPLACEMENT PROGRAM Key points: 1. Contract awarded to The Boeing Company for critical A-10 aircraft sustainment. 2. The contract value is $23.4 million, supporting engineering services. 3. Competition was full and open after exclusion of sources, indicating some market research. 4. The sector is Defense, specifically aircraft sustainment and engineering. 5. The duration of the contract is 1140 days.

Value Assessment

Rating: fair

The contract value of $23.4 million for engineering services over 1140 days appears reasonable for specialized aircraft sustainment. Benchmarking against similar complex engineering support contracts for legacy aircraft would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while competition was sought, specific sources may have been identified or excluded, potentially limiting the breadth of competition and impacting price discovery.

Taxpayer Impact: The $23.4 million expenditure supports the continued operational readiness of the A-10 fleet, which has long-term strategic value. The specific impact on taxpayers depends on the efficiency and effectiveness of the services rendered.

Public Impact

Ensures continued operational capability of the A-10 Thunderbolt II aircraft. Supports the longevity of a key close air support platform. Investment in specialized engineering expertise for aging military hardware. Potential for follow-on contracts related to aircraft sustainment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition due to source exclusion.
  • Time and Materials contract type can lead to cost overruns.
  • Long contract duration without clear performance metrics.

Positive Signals

  • Supports critical defense asset.
  • Awarded to a known prime contractor with relevant experience.
  • Aims to maintain operational readiness.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on aerospace engineering and sustainment for legacy aircraft. Spending benchmarks for similar engineering services on major defense platforms can vary significantly based on complexity and program scope.

Small Business Impact

The data indicates the awardee is The Boeing Company, a large business. There is no specific information provided regarding small business participation or subcontracting goals for this particular contract.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, part of the Department of Defense. Oversight would typically involve program management offices ensuring adherence to contract terms, quality of services, and cost controls.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Potential for cost overruns due to Time and Materials contract type.
  • Limited competition may have reduced price negotiation leverage.
  • Dependency on a single contractor for critical engineering support.
  • Aging platform requires continuous and potentially costly sustainment efforts.

Tags

engineering-services, department-of-defense, mo, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.4 million to THE BOEING COMPANY. ENGINEERING SERVICES TO SUPPORT THE A-10 WING REPLACEMENT PROGRAM

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 $23.4 million.

What is the period of performance?

Start: 2007-09-17. End: 2010-10-31.

What was the rationale for excluding specific sources in the 'full and open competition after exclusion of sources' process, and how did this impact the final price?

The exclusion of sources typically occurs when only a limited number of contractors possess the specialized knowledge, technology, or facilities required for a specific project. This can be due to proprietary information, unique manufacturing capabilities, or essential security requirements. While it aims to ensure the best qualified contractor is selected, it can also limit competitive pressure, potentially leading to higher prices than if a broader range of bidders were involved.

What are the specific risks associated with using a Time and Materials (T&M) contract for engineering services on a legacy aircraft program like the A-10?

Time and Materials contracts carry inherent risks of cost escalation as they reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. Without robust oversight and defined ceilings, there's a risk of inefficient labor practices or inflated material costs. For legacy systems, unforeseen technical challenges can also drive up labor hours, making cost control more difficult compared to fixed-price contracts.

How effectively will these engineering services contribute to the long-term sustainment and operational readiness of the A-10 fleet, given its age?

The effectiveness hinges on the scope and quality of the engineering services provided. If they address critical structural integrity issues, obsolescence challenges, and necessary upgrades, they can significantly extend the A-10's service life and maintain its close air support capabilities. However, the aging airframe presents ongoing sustainment challenges, and the long-term viability of the platform ultimately depends on broader strategic decisions regarding fleet modernization.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS.TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 90

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $34,442,726

Exercised Options: $32,192,714

Current Obligation: $23,391,726

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2007-09-17

Current End Date: 2010-10-31

Potential End Date: 2010-10-31 00:00:00

Last Modified: 2011-08-16

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