Boeing awarded $28.1M for T-38C avionics integration and logistics support by the Air Force

Contract Overview

Contract Amount: $28,096,565 ($28.1M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2019-04-01

End Date: 2021-01-29

Contract Duration: 669 days

Daily Burn Rate: $42.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: T-38C AVIONICS COMPONENT INTEGRATION AND 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 $28.1 million to THE BOEING COMPANY for work described as: T-38C AVIONICS COMPONENT INTEGRATION AND CONTRACTOR LOGISTICS SUPPORT Key points: 1. Contract focuses on critical avionics upgrades and ongoing support for the T-38C training aircraft. 2. The award represents a significant investment in maintaining the readiness and effectiveness of a key training platform. 3. Competition dynamics for specialized aerospace components can influence pricing and innovation. 4. Performance context is crucial for assessing the long-term value of avionics integration and sustainment. 5. Sector positioning highlights the importance of defense contractors in modernizing military training fleets.

Value Assessment

Rating: good

The contract value of $28.1 million for avionics integration and contractor logistics support for the T-38C appears reasonable given the specialized nature of aerospace components and the duration of the contract. Benchmarking against similar avionics upgrade programs for training aircraft would provide a more precise value-for-money assessment. However, the firm-fixed-price structure suggests a degree of cost certainty for the government.

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 submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages a wider range of technical solutions. The government's ability to solicit from the entire market is a positive sign for achieving fair market value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a broader selection of qualified contractors, maximizing the value of federal dollars spent.

Public Impact

The primary beneficiaries are the U.S. Air Force pilots undergoing training, who will benefit from modernized and reliable T-38C aircraft. Services delivered include the integration of new avionics systems and ongoing contractor logistics support, ensuring operational availability. The geographic impact is primarily centered around Air Force training bases where the T-38C is utilized. Workforce implications include the need for skilled aerospace engineers, technicians, and logistics personnel within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during avionics integration.
Dependence on a single contractor for critical logistics support could create vulnerabilities.
Ensuring long-term availability of specialized parts for an aging aircraft fleet.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a robust bidding process.
Focus on modernizing a critical training platform enhances pilot readiness.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity, stringent regulatory requirements, and significant government investment. Contracts for aircraft modernization and sustainment are a substantial part of this sector. The T-38C avionics integration falls within the broader category of aircraft parts and auxiliary equipment manufacturing, a segment that requires specialized expertise and adherence to rigorous quality standards. Comparable spending benchmarks would involve looking at other major avionics upgrade programs for military training or operational aircraft.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large prime contractor, The Boeing Company. Further analysis would be needed to determine if significant subcontracting opportunities exist for small businesses within the supply chain for avionics components or logistics services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded within the firm-fixed-price contract terms, requiring delivery of specified goods and services. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities may not be publicly detailed.

Related Government Programs

T-38 Talon Sustainment Programs
Advanced Avionics Modernization Initiatives
Defense Contractor Logistics Support Services
Military Training Aircraft Procurement

Risk Flags

Potential for component obsolescence in aging T-38C airframes.
Dependence on contractor for critical logistics support.
Ensuring continued availability of specialized avionics parts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.1 million to THE BOEING COMPANY. T-38C AVIONICS COMPONENT INTEGRATION AND 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 $28.1 million.

What is the period of performance?

Start: 2019-04-01. End: 2021-01-29.

What is the historical spending trend for T-38C avionics upgrades and contractor logistics support?

Analyzing historical spending for T-38C avionics upgrades and contractor logistics support requires accessing detailed contract databases over several fiscal years. While this specific award is for approximately $28.1 million, understanding the broader trend involves looking at previous contracts for similar services, potential sole-source awards, and the overall lifecycle cost of the T-38C program. Trends might indicate increasing costs due to aging components, a shift towards more comprehensive support contracts, or periods of intensive upgrade cycles. Without access to a comprehensive historical contract database for this specific platform, it's difficult to provide precise figures, but such analysis would reveal if current spending aligns with past investment patterns or represents a significant deviation.

How does the awarded price compare to similar avionics integration contracts for other military training aircraft?

Benchmarking the $28.1 million award for T-38C avionics integration against similar contracts for other military training aircraft is crucial for assessing value for money. Factors such as the complexity of the avionics suite, the number of aircraft being upgraded, the specific technologies integrated, and the duration of the support services all influence pricing. For instance, upgrades to more advanced training platforms or those with more sophisticated sensor integration might command higher prices. Conversely, simpler avionics packages or shorter support periods would be expected to cost less. A detailed comparison would involve identifying contracts with comparable scope, scale, and technological sophistication, adjusting for inflation and market conditions, to determine if Boeing's pricing is competitive within the defense aerospace sector.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for a contract like the T-38C avionics integration and contractor logistics support typically focus on ensuring the operational readiness and effectiveness of the aircraft. For avionics integration, KPIs might include successful system testing, meeting specified performance parameters (e.g., accuracy, reliability), and on-time completion of integration milestones. For contractor logistics support, common KPIs revolve around aircraft availability rates, response times for maintenance and repairs, parts availability, and adherence to maintenance schedules. The firm-fixed-price nature of the contract implies that meeting these performance standards is directly tied to the contractor's compensation and successful contract execution.

What is the track record of The Boeing Company in delivering similar avionics integration and logistics support services?

The Boeing Company has a long and extensive track record in delivering complex avionics integration and contractor logistics support (CLS) services across a wide range of military and commercial aircraft platforms. They are a major defense contractor with deep expertise in systems engineering, aircraft modification, and sustainment. For military training aircraft, Boeing has supported various programs, demonstrating capabilities in upgrading avionics, managing supply chains for specialized parts, and providing maintenance and operational support. Their experience with platforms like the T-7 Red Hawk, although a new design, showcases their commitment to next-generation training solutions. Evaluating specific past performance on contracts of similar size and scope for the T-38C or comparable aircraft would provide a more granular assessment of their capabilities and reliability in this specific context.

What are the potential risks associated with the long-term sustainment of the T-38C fleet, and how does this contract address them?

The long-term sustainment of the T-38C fleet faces risks primarily related to the aging airframe and its increasingly outdated avionics. As the aircraft ages, component obsolescence, increased maintenance requirements, and the difficulty of finding spare parts become significant challenges. This contract addresses some of these risks by focusing on avionics integration, which aims to modernize critical systems and potentially improve reliability and maintainability. The contractor logistics support component is designed to ensure ongoing operational availability through maintenance, repair, and supply chain management. However, the inherent risks of supporting an aging platform remain, and future contracts may be needed to address further obsolescence or structural issues.

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: $28,273,137

Exercised Options: $28,273,137

Current Obligation: $28,096,565

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $6,330,740

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