DoD Awards Boeing $32.2M for T-38C Avionics Support, Raising Questions on Value and Competition
Contract Overview
Contract Amount: $32,244,786 ($32.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-04-01
End Date: 2021-10-30
Contract Duration: 1,308 days
Daily Burn Rate: $24.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: T-38C AVIONICS COMPONENT INTEGRATION, TASK ORDER FOR CONTRACTOR LOGISTICS SUPPORT.
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $32.2 million to THE BOEING COMPANY for work described as: T-38C AVIONICS COMPONENT INTEGRATION, TASK ORDER FOR CONTRACTOR LOGISTICS SUPPORT. Key points: 1. Significant contract value for specialized avionics support. 2. Boeing, a major defense contractor, holds this award. 3. Potential risks include vendor lock-in and cost overruns. 4. Spending falls within the aerospace and defense sector.
Value Assessment
Rating: fair
The $32.2 million contract for T-38C avionics component integration and contractor logistics support appears to be a substantial investment. Benchmarking against similar complex avionics integration contracts is difficult without more detailed cost breakdowns, but the duration and scope suggest a fair, though potentially high, price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, the specific task order nature and the specialized requirements might have limited the number of truly competitive bids, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are being used for essential military aircraft sustainment. While competition was sought, the final price reflects the specialized nature of the services and the chosen contractor's capabilities.
Public Impact
Ensures continued operational readiness of the T-38C training aircraft fleet. Supports critical pilot training programs for the U.S. Air Force. Impacts the aerospace and defense industry through contract awards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited transparency on cost-effectiveness of specific avionics integration tasks.
- Potential for scope creep in long-term logistics support contracts.
- Reliance on a single contractor for critical component support.
Positive Signals
- Awarded under full and open competition.
- Supports a vital military training platform.
- Contract managed by the Department of the Air Force.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts and auxiliary equipment manufacturing. Spending benchmarks for similar avionics integration and logistics support contracts can vary widely based on aircraft type, complexity, and contract duration.
Small Business Impact
The prime contractor is The Boeing Company, a large aerospace firm. There is no indication in the provided data that small businesses were significantly involved as subcontractors on this specific task order.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure compliance and performance.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns in long-term support.
- Limited visibility into specific component integration benefits.
- Dependence on a single large contractor.
- Complexity of tracking performance across diverse avionics systems.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.2 million to THE BOEING COMPANY. T-38C AVIONICS COMPONENT INTEGRATION, TASK ORDER FOR CONTRACTOR LOGISTICS SUPPORT.
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 $32.2 million.
What is the period of performance?
Start: 2018-04-01. End: 2021-10-30.
What specific avionics components were integrated, and how did this integration enhance the T-38C's capabilities or address obsolescence?
The data does not specify the exact avionics components integrated. However, such tasks typically involve upgrading or replacing outdated systems to maintain operational effectiveness, improve reliability, or incorporate new functionalities required for modern pilot training. This could include navigation, communication, or sensor systems.
Given the full and open competition, what was the competitive landscape, and were there significant price differences between the winning bid and other proposals?
While the award states 'full and open competition,' the specifics of the bidding process and the number of competing proposals are not detailed. Significant price differences are common in complex procurements; the final price reflects the government's assessment of value and the contractor's proposed solution meeting technical requirements.
How does the contractor logistics support component ensure cost-effectiveness and timely maintenance for the T-38C fleet over the contract's duration?
Contractor logistics support aims to leverage specialized expertise and potentially more efficient supply chains to maintain aircraft readiness. Cost-effectiveness is typically managed through performance metrics, service level agreements, and the firm-fixed-price structure, which shifts some cost risk to the contractor.
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
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: $32,244,786
Exercised Options: $32,244,786
Current Obligation: $32,244,786
Subaward Activity
Number of Subawards: 33
Total Subaward Amount: $12,729,184
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: 2018-04-01
Current End Date: 2021-10-30
Potential End Date: 2021-10-30 00:00:00
Last Modified: 2022-08-02
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