Boeing awarded $333M for A-10 Thunderbolt II wings, addressing critical aircraft sustainment needs

Contract Overview

Contract Amount: $333,076,254 ($333.1M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2019-08-21

End Date: 2025-06-30

Contract Duration: 2,140 days

Daily Burn Rate: $155.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS EFFORT IS TO PURCHASE WINGS FOR THE A-10 THUNDERBOLT II ADVANCED-WING CONTINUATION KIT (ATTACK) PROGRAM FROM THE A-10 AIRCRAFT.

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $333.1 million to THE BOEING COMPANY for work described as: THIS EFFORT IS TO PURCHASE WINGS FOR THE A-10 THUNDERBOLT II ADVANCED-WING CONTINUATION KIT (ATTACK) PROGRAM FROM THE A-10 AIRCRAFT. Key points: 1. Contract addresses a critical component for the A-10 fleet, ensuring continued operational readiness. 2. The award to Boeing, the original equipment manufacturer, leverages existing expertise for specialized parts. 3. A firm-fixed-price contract structure aims to control costs and provide predictability. 4. The duration of the contract extends over several years, indicating a long-term sustainment requirement. 5. This procurement is essential for maintaining the aging A-10 airframe's structural integrity and flight capabilities. 6. The contract value represents a significant investment in a key legacy aircraft platform.

Value Assessment

Rating: good

The contract value of $333 million for A-10 wings appears reasonable given the specialized nature of aircraft components and the sole-source potential for original equipment manufacturers. Benchmarking against similar large-scale aircraft component procurements would provide further context, but the firm-fixed-price structure suggests an effort to manage costs effectively. The long performance period indicates a sustained need, and the price reflects the complexity and criticality of the components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. While the data does not specify the number of bidders, this competitive process is generally expected to yield fair market pricing. The fact that it was competed suggests that the Air Force sought the best value proposition from the market for these critical components.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple suppliers to offer competitive pricing, potentially leading to cost savings compared to sole-source awards.

Public Impact

The primary beneficiaries are the U.S. Air Force and its A-10 Thunderbolt II attack aircraft fleet. The contract delivers essential wing components, crucial for the continued airworthiness and operational capability of the A-10 aircraft. The geographic impact is primarily within the United States, supporting defense manufacturing and sustainment operations. Workforce implications include skilled labor in aerospace manufacturing and engineering, particularly at Boeing facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term sustainment of aging aircraft platforms can incur significant and escalating costs over time.
Reliance on a single manufacturer for critical components can create supply chain vulnerabilities.
The specific performance metrics and quality control for these wings need continuous monitoring to ensure airworthiness.

Positive Signals

Awarding to the original equipment manufacturer (Boeing) leverages established expertise and design knowledge.
The firm-fixed-price contract provides cost certainty for the government.
The competitive award process suggests an effort to achieve value for money.
The extended delivery schedule allows for phased production and integration into the fleet's maintenance cycle.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The market for specialized aircraft components, particularly for legacy platforms like the A-10, is often dominated by original equipment manufacturers due to proprietary knowledge and complex production processes. Spending on aircraft sustainment is a significant portion of the Department of Defense's budget, aimed at maintaining the readiness of its vast fleet.

Small Business Impact

The provided data indicates that small business participation (sb) is false and that there was no small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist within Boeing's supply chain, but this contract does not appear to directly benefit the small business ecosystem through a set-aside provision.

Oversight & Accountability

The contract is subject to standard Department of Defense oversight mechanisms, including contract administration by the Air Force and potential review by the Government Accountability Office (GAO) or the Inspector General. The firm-fixed-price nature of the contract provides a degree of financial oversight by establishing a ceiling cost. Transparency is maintained through contract award databases like SAM.gov.

Related Government Programs

A-10 Thunderbolt II Sustainment Program
Air Force Aircraft Parts Procurement
Defense Logistics Agency (DLA) Aviation Support
Aerospace Manufacturing Contracts

Risk Flags

Potential for increased costs due to sole-source or limited competition dynamics.
Supply chain disruption risk if Boeing faces production issues.
Long-term sustainment costs for aging aircraft platforms.
Ensuring consistent quality and airworthiness of critical flight components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $333.1 million to THE BOEING COMPANY. THIS EFFORT IS TO PURCHASE WINGS FOR THE A-10 THUNDERBOLT II ADVANCED-WING CONTINUATION KIT (ATTACK) PROGRAM FROM THE A-10 AIRCRAFT.

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 $333.1 million.

What is the period of performance?

Start: 2019-08-21. End: 2025-06-30.

What is the historical spending trend for A-10 wing replacements or similar critical components?

Analyzing historical spending on A-10 wing replacements or comparable critical aircraft components is essential for contextualizing the current $333 million award. While specific historical data for A-10 wing procurements is not detailed here, the U.S. Air Force has consistently invested in the sustainment of its legacy fleets. For instance, major airframe component overhauls or replacements for aircraft like the C-130 or F-16 can run into tens or hundreds of millions of dollars over their lifecycle. The A-10, having been in service for decades, requires ongoing structural maintenance. Past awards for similar large-scale component manufacturing, especially those involving specialized materials and complex assembly, would likely show significant investment. Understanding these trends helps assess whether the current contract represents a typical expenditure, an increase due to inflation or demand, or a deviation from historical patterns. Without specific prior wing procurement data, comparisons to broader aircraft sustainment budgets for the A-10 program can indicate the relative scale of this investment within the overall maintenance strategy.

How does the cost per wing compare to industry benchmarks or previous A-10 wing procurements?

Determining the precise cost per wing requires dividing the total contract value by the number of wings procured. Given the $333 million contract value and assuming a standard aircraft configuration requiring two wings, the cost per wing would be approximately $166.5 million. Direct comparison to previous A-10 wing procurements is challenging without access to historical contract details, as pricing can fluctuate significantly due to inflation, technological changes, and competition levels. However, this figure can be benchmarked against the cost of major structural components for other military aircraft. For example, the cost of a new wing for a commercial airliner can range from tens to hundreds of millions of dollars, depending on size and complexity. For military aircraft, the specialized materials, stringent testing, and lower production volumes often lead to higher unit costs. If this contract represents a sole-source or limited-competition award for a specific advanced wing design, the cost per unit might be higher than if it were procured through robust, multi-bidder competition. Further analysis would involve comparing this unit cost against specialized aerospace manufacturing cost data and any available public information on similar military aircraft component pricing.

What are the key performance indicators (KPIs) for this contract, and how is Boeing's performance being measured?

Key performance indicators (KPIs) for this contract likely revolve around timely delivery of conforming wings, adherence to quality specifications, and potentially cost control within the firm-fixed-price structure. The U.S. Air Force will be measuring Boeing's performance against the contract's delivery schedule (ending June 30, 2025) and the technical specifications outlined for the A-10 Advanced-Wing Continuation Kit. Performance will likely be assessed through metrics such as on-time delivery rates, rejection rates for non-conforming parts, and compliance with stringent aerospace quality standards (e.g., AS9100). Contract clauses would typically include provisions for inspections and acceptance testing by the government. Failure to meet these KPIs could result in penalties, withholding of payments, or other contractual remedies. Regular program reviews and technical interchange meetings between the Air Force and Boeing would serve as ongoing mechanisms to monitor progress and address any emerging performance issues, ensuring the wings meet the demanding requirements for A-10 operational readiness.

What is the risk associated with relying on Boeing for A-10 wing production, considering their role as the original equipment manufacturer?

Relying on Boeing, the original equipment manufacturer (OEM), for A-10 wing production presents both advantages and potential risks. The primary advantage is Boeing's deep institutional knowledge of the A-10's design, manufacturing processes, and required specifications, which can lead to higher quality and fewer production delays. However, the risk lies in the potential for reduced price competition, as OEMs often have proprietary rights and established production lines that can make it difficult for competitors to enter the market. This can lead to higher costs for the government if not managed through effective negotiation and oversight. Furthermore, over-reliance on a single supplier can create supply chain vulnerabilities; any disruption at Boeing's facility (e.g., labor issues, material shortages, or other production challenges) could directly impact the availability of critical A-10 components. The Air Force mitigates these risks by ensuring robust contract terms, potentially requiring detailed production plans, and maintaining strong oversight throughout the contract duration to ensure timely delivery and adherence to specifications.

How does this contract fit into the broader strategy for sustaining the A-10 Thunderbolt II fleet?

This contract for A-10 wings is a critical component of the U.S. Air Force's broader strategy to sustain the A-10 Thunderbolt II fleet, which is known for its close air support capabilities. The A-10 airframe is aging, and maintaining its structural integrity, particularly the wings which are subject to significant stress, is paramount for continued operational readiness. This procurement ensures that the fleet has access to essential, flight-critical components, extending the service life of these aircraft. It complements other sustainment efforts, such as engine maintenance, avionics upgrades, and structural repairs. By investing in new wings, the Air Force is demonstrating a commitment to keeping the A-10 operational for its intended mission profile, likely until its planned retirement or replacement is fully realized. This strategic approach allows the Air Force to leverage the A-10's unique capabilities while managing the lifecycle costs and risks associated with operating an older aircraft platform.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA820218R1001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134

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: $333,076,254

Exercised Options: $333,076,254

Current Obligation: $333,076,254

Subaward Activity

Number of Subawards: 57

Total Subaward Amount: $234,816,413

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA820219D0004

IDV Type: IDC

Timeline