Boeing awarded $37M for A-10 Thunderbolt II wing kits, extending aircraft service life

Contract Overview

Contract Amount: $36,994,431 ($37.0M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2020-12-15

End Date: 2025-12-31

Contract Duration: 1,842 days

Daily Burn Rate: $20.1K/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 $37.0 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 focuses on critical component replacement for a legacy aircraft. 2. Sole-source award to Boeing, the original manufacturer, suggests limited competition. 3. Long-term delivery schedule indicates sustained support for the A-10 fleet. 4. Firm-fixed-price contract type aims to control costs for the government. 5. This award supports the continued operational readiness of a key Air Force asset.

Value Assessment

Rating: fair

The contract value of $36.99 million for A-10 wing kits appears reasonable given the specialized nature of aircraft component manufacturing and the need for original equipment manufacturer expertise. However, without direct comparisons to similar wing replacement contracts for other legacy aircraft or detailed cost breakdowns, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty, but the absence of competition could limit potential savings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to The Boeing Company. As the original manufacturer of the A-10 aircraft and its components, Boeing is uniquely positioned to produce these advanced wing kits. The sole-source nature indicates that the government did not solicit bids from other potential suppliers, likely due to proprietary knowledge, specialized tooling, or the need for seamless integration with existing aircraft systems.

Taxpayer Impact: A sole-source award means taxpayers do not benefit from competitive bidding, which typically drives down prices. The government relies on negotiation to secure a fair price, but the absence of alternatives limits the government's leverage.

Public Impact

The primary beneficiaries are the U.S. Air Force and its A-10 Thunderbolt II aircraft fleet. This contract ensures the continued airworthiness and operational capability of the A-10, known for its close air support role. The delivery of these wing kits will support the longevity of a significant portion of the Air Force's attack aircraft inventory. Workforce implications may include specialized manufacturing and engineering roles at Boeing facilities involved in production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competitive pricing advantages for taxpayers.
  • Long-term contract duration may not reflect evolving technological needs or potential for alternative solutions.
  • Reliance on a single supplier for critical components could pose supply chain risks.

Positive Signals

  • Ensures continued availability of critical, specialized aircraft parts.
  • Firm-fixed-price contract provides cost predictability.
  • Supports the operational readiness of a key military asset.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, specialized manufacturing processes, and long product lifecycles. Contracts for aircraft components, especially for legacy platforms like the A-10, often involve original equipment manufacturers due to the need for specific technical data, tooling, and quality control. Spending in this area is driven by the need to maintain aging fleets and ensure mission readiness, with significant government investment in sustainment and modernization programs.

Small Business Impact

This contract does not appear to involve a small business set-aside. As a sole-source award to a large prime contractor, the direct impact on small businesses is likely limited to potential subcontracting opportunities. The extent to which Boeing will engage small businesses for parts or services related to wing kit production is not specified in the provided data.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Air Force, likely through contracting officers and program management offices. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated by public contract databases, but detailed cost breakdowns and performance metrics may not be fully public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • A-10 Thunderbolt II Aircraft Sustainment
  • Air Force Aircraft Parts Procurement
  • Legacy Aircraft Modernization Programs
  • Aerospace Component Manufacturing Contracts

Risk Flags

  • Sole-source award
  • Potential for limited competition
  • Long-term sustainment requirement

Tags

defense, department-of-defense, department-of-the-air-force, aircraft-parts, legacy-aircraft, sole-source, firm-fixed-price, a-10-thunderbolt-ii, boeing, missouri, component-manufacturing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.0 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 $37.0 million.

What is the period of performance?

Start: 2020-12-15. End: 2025-12-31.

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

Historical spending data for A-10 wing kits specifically is not readily available in the provided snippet. However, the U.S. Air Force has consistently invested in the sustainment of its legacy platforms, including the A-10. Over the past decade, significant funds have been allocated to maintain and upgrade the A-10 fleet to extend its service life. This includes various component replacements, structural repairs, and avionics upgrades. The total spending on A-10 sustainment can run into hundreds of millions of dollars annually, encompassing a wide range of parts, labor, and support services. This particular award for wing kits represents a specific, high-value component replacement within that broader sustainment effort, reflecting the ongoing commitment to keeping the A-10 operational.

How does the price per wing kit compare to industry benchmarks or previous procurements?

A precise per-unit cost for the A-10 wing kits cannot be determined from the provided data, as the total award amount of $36.99 million covers an unspecified quantity of wings. Without knowing the number of units procured, calculating a per-unit cost for comparison is impossible. Furthermore, direct industry benchmarks for specialized, legacy aircraft wing kits are scarce due to the unique nature of such components and the limited number of manufacturers capable of producing them. As this is a sole-source award to Boeing, a direct comparison to competitive market prices is not feasible. Any assessment would require access to detailed cost proposals and historical pricing data from Boeing for similar components.

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

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or the specific performance measurement methods for this contract. However, for a firm-fixed-price contract involving the delivery of physical components like aircraft wings, typical KPIs would likely include on-time delivery, adherence to quality specifications (e.g., material integrity, dimensional accuracy, compliance with aerospace standards), and defect rates. The Air Force would monitor these aspects through contract administration, inspections, and acceptance testing upon delivery. Performance would be measured against the technical requirements outlined in the contract statement of work and the delivery schedule.

What is the risk associated with relying on a sole-source supplier for critical aircraft components?

Relying on a sole-source supplier like Boeing for critical A-10 wing kits presents several risks. Firstly, it eliminates the potential for cost savings that competition typically provides, potentially leading to higher prices for taxpayers. Secondly, it creates a dependency on a single entity, which can lead to supply chain vulnerabilities if the supplier experiences production issues, financial instability, or changes in business strategy. Thirdly, without competitive pressure, there might be less incentive for the supplier to innovate or improve efficiency. Lastly, the government has less leverage in negotiations, potentially impacting delivery timelines or terms if disputes arise. Mitigating these risks often involves robust contract management, close monitoring of the supplier's performance, and exploring long-term sustainment strategies that might involve developing alternative sources or organic repair capabilities where feasible.

What is the expected impact of these new wing kits on the A-10's operational lifespan and capabilities?

The primary impact of these new wing kits is to significantly extend the operational lifespan of the A-10 Thunderbolt II aircraft. The wings are a critical structural component that experiences substantial stress during flight operations, particularly during the A-10's low-altitude, high-G maneuvers characteristic of its close air support mission. Fatigue and wear on the original wings necessitate replacement to prevent structural failure and maintain airworthiness. By providing new, robust wing kits, the Air Force can ensure the A-10 fleet remains combat-capable for its intended missions well into the future, potentially for another decade or more, depending on the overall sustainment plan for the aircraft. This allows the Air Force to maintain its specialized close air support capability while other modernization or replacement programs are developed.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingOther 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: $36,994,431

Exercised Options: $36,994,431

Current Obligation: $36,994,431

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

Start Date: 2020-12-15

Current End Date: 2025-12-31

Potential End Date: 2025-12-31 00:00:00

Last Modified: 2025-07-09

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