Boeing awarded $30.75M for T-38C avionics support, extending contractor logistics services
Contract Overview
Contract Amount: $30,750,761 ($30.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2017-04-01
End Date: 2018-03-31
Contract Duration: 364 days
Daily Burn Rate: $84.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF T-38C AVIONICS COMPONENT INTEGRATION AND CONTRACTOR LOGISTICS SUPPORT (AVCI). THE PURPOSE OF THIS DELIVERY ORDER IS TO AWARD THE CONTRACTOR LOGISTICS SUPPORT (CLS) PORTION OF THIS CONTRACT TO SUPPORT THE T-38C AIRCRAFT.
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $30.8 million to THE BOEING COMPANY for work described as: IGF::OT::IGF T-38C AVIONICS COMPONENT INTEGRATION AND CONTRACTOR LOGISTICS SUPPORT (AVCI). THE PURPOSE OF THIS DELIVERY ORDER IS TO AWARD THE CONTRACTOR LOGISTICS SUPPORT (CLS) PORTION OF THIS CONTRACT TO SUPPORT THE T-38C AIRCRAFT. Key points: 1. Contract provides essential logistics support for T-38C aircraft avionics. 2. Awarded as a delivery order under an existing contract. 3. Services cover a 12-month period, indicating a focused operational need. 4. The firm-fixed-price structure aims to control costs for the government. 5. Boeing, a major aerospace contractor, holds this award. 6. This contract supports a critical training and readiness platform for the Air Force.
Value Assessment
Rating: good
The contract value of $30.75 million for a 12-month period of contractor logistics support for T-38C avionics appears reasonable given the specialized nature of military aircraft support. Benchmarking against similar contracts for aircraft component integration and logistics support is challenging without more specific data on the scope of services and parts included. However, the firm-fixed-price contract type suggests an effort to establish predictable costs. The provided data does not include specific unit costs for comparison.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete for the work. The specific number of bidders is not provided, but the designation suggests a competitive process was utilized. This approach is generally expected to yield fair market pricing and a wider range of potential solutions.
Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for the government's investment.
Public Impact
The primary beneficiaries are the U.S. Air Force personnel who rely on the T-38C for training and readiness. The contract delivers essential contractor logistics support for T-38C aircraft avionics. Services are likely concentrated at Air Force bases where T-38C aircraft are operated and maintained. This contract supports the operational readiness of a key training aircraft, indirectly impacting the pilot training pipeline and overall Air Force capability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical issues arise with avionics components.
- Dependence on a single contractor for critical logistics support could pose a risk if performance falters.
Positive Signals
- Firm-fixed-price contract type helps manage cost predictability.
- Award to an experienced contractor like Boeing suggests a higher likelihood of successful execution.
- Full and open competition indicates a robust market assessment was likely performed.
Sector Analysis
The aerospace and defense sector is characterized by complex supply chains and specialized technical requirements. Contracts for aircraft parts and logistics support are crucial for maintaining the operational readiness of military fleets. The market for such services is dominated by large, established aerospace companies like Boeing, which possess the necessary expertise and infrastructure. Spending in this area is driven by defense budgets and the need to sustain aging aircraft fleets, as well as integrate new technologies.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The prime contractor, Boeing, is a large business. While there is no direct set-aside, large prime contractors are often required to subcontract a portion of the work to small businesses. The extent of small business participation would depend on Boeing's subcontracting plan, which is not detailed here.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract awards databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- T-38 Talon Aircraft Sustainment
- Avionics Modernization Programs
- Aerospace Contractor Logistics Support
- Defense Training Aircraft Operations
Risk Flags
- Potential for sole-source follow-on if competition is not re-established.
- Dependence on specific avionics components with limited alternative suppliers.
Tags
defense, department-of-defense, department-of-the-air-force, t-38c, avionics, contractor-logistics-support, delivery-order, firm-fixed-price, full-and-open-competition, the-boeing-company, aircraft-parts, missouri
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.8 million to THE BOEING COMPANY. IGF::OT::IGF T-38C AVIONICS COMPONENT INTEGRATION AND CONTRACTOR LOGISTICS SUPPORT (AVCI). THE PURPOSE OF THIS DELIVERY ORDER IS TO AWARD THE CONTRACTOR LOGISTICS SUPPORT (CLS) PORTION OF THIS CONTRACT TO SUPPORT THE T-38C 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 $30.8 million.
What is the period of performance?
Start: 2017-04-01. End: 2018-03-31.
What is the historical spending trend for T-38C avionics support and contractor logistics services?
Analyzing historical spending for T-38C avionics support and contractor logistics services requires access to detailed contract databases beyond the provided data. However, general trends in defense spending suggest that sustainment and logistics contracts for aging aircraft fleets like the T-38C are often consistent year-over-year, with potential increases driven by modernization efforts or extended operational life. The provided data for this specific delivery order ($30.75M for 12 months) can serve as a benchmark for recent spending. To understand broader trends, one would need to examine contract awards for similar services over several fiscal years, looking at total obligated amounts, contract types, and the number of competitors to identify patterns in pricing and competition.
How does the cost of this contract compare to similar T-38C support contracts awarded to other vendors?
Direct comparison of this $30.75 million contract for T-38C avionics support to similar contracts awarded to other vendors is difficult without knowing the precise scope of services and parts included. The provided data indicates this is a delivery order for contractor logistics support (CLS) for avionics, awarded to The Boeing Company. To perform a robust comparison, one would need to identify other CLS contracts for the T-38C, or comparable trainer aircraft, and analyze their total value, duration, and specific deliverables. Factors such as the number of aircraft supported, the level of maintenance provided (e.g., depot vs. line maintenance), and the specific avionics systems involved would significantly influence cost. The firm-fixed-price nature of this award suggests a defined cost structure, which is a positive aspect for value assessment.
What are the key performance indicators (KPIs) used to measure the success of this contractor logistics support contract?
Key Performance Indicators (KPIs) for contractor logistics support (CLS) contracts, particularly for military aircraft like the T-38C, typically focus on ensuring aircraft availability, reliability, and maintainability. Common KPIs include: Mission Capable (MC) rates, which measure the percentage of aircraft available to fly; Mean Time Between Failures (MTBF) for critical avionics components; Mean Time To Repair (MTTR), indicating how quickly repairs are completed; and On-Time Delivery rates for parts and services. Adherence to maintenance schedules and compliance with technical orders are also crucial. For this specific contract, the Air Force would likely monitor these metrics to ensure that Boeing is effectively providing the necessary logistics support to maintain the T-38C fleet's operational readiness and training capabilities.
What is the track record of The Boeing Company in providing contractor logistics support for military aircraft?
The Boeing Company has a long and extensive track record of providing contractor logistics support (CLS) for a wide range of U.S. military aircraft, including fighters, bombers, transports, and training platforms. They are a major defense contractor with significant experience in managing complex global supply chains, maintenance, repair, and overhaul (MRO) services, and integrated logistics solutions. Boeing's CLS offerings often encompass spare parts management, technical data, field support, training, and sustainment engineering. While specific performance metrics for every contract are not publicly available, Boeing's continued success in winning and executing large-scale sustainment contracts across various military branches indicates a generally strong performance history and established capabilities in this domain.
What are the potential risks associated with relying on a single contractor for T-38C avionics logistics support?
Relying on a single contractor, such as Boeing in this case, for T-38C avionics logistics support presents several potential risks. Firstly, there's a risk of vendor lock-in, where the government may have limited options to switch providers if performance issues arise or costs increase significantly, especially if specialized knowledge or tooling is proprietary. Secondly, a sole reliance can reduce competitive pressure, potentially leading to complacency or less aggressive pricing in future contract renewals. Thirdly, the contractor's financial stability or operational disruptions (e.g., labor strikes, supply chain issues) could directly impact the availability of T-38C aircraft, affecting pilot training schedules. Finally, a single point of failure in the supply chain for critical avionics components could lead to extended downtime if not managed proactively.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA821115R0001
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: $30,750,761
Exercised Options: $30,750,761
Current Obligation: $30,750,761
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $1,387,873
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA821116D0001
IDV Type: IDC
Timeline
Start Date: 2017-04-01
Current End Date: 2018-03-31
Potential End Date: 2018-03-31 00:00:00
Last Modified: 2023-02-14
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