Boeing awarded $30.5M for T-38C avionics integration and logistics support by the Air Force

Contract Overview

Contract Amount: $30,518,812 ($30.5M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2020-04-01

End Date: 2021-03-31

Contract Duration: 364 days

Daily Burn Rate: $83.8K/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 $30.5 million to THE BOEING COMPANY for work described as: T-38C AVIONICS COMPONENT INTEGRATION AND CONTRACTOR LOGISTICS SUPPORT Key points: 1. Contract value represents a significant investment in maintaining the T-38C fleet's operational readiness. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type aims to control costs and provide predictability for the government. 4. Logistics support is crucial for ensuring the long-term availability and performance of aging aircraft. 5. The duration of the contract (364 days) indicates a focused effort on specific integration and support tasks. 6. Boeing's role as the contractor suggests a reliance on established expertise for this specialized aircraft.

Value Assessment

Rating: good

The contract value of $30.5 million for avionics integration and contractor logistics support for the T-38C appears reasonable given the specialized nature of the aircraft and the scope of work. Benchmarking against similar sole-source or limited-competition contracts for legacy aircraft systems can be challenging, but the fixed-price nature of this award suggests an effort to manage costs effectively. The provided data point 'br': 83843 might represent a benchmark or a previous contract value, which would require further analysis to confirm its relevance and comparability.

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 were likely solicited and evaluated. This approach generally fosters a competitive environment, encouraging bidders to offer their best pricing and technical solutions to win the contract. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: A competitive bidding process like full and open competition is beneficial for taxpayers as it typically leads to more favorable pricing and better value for the government's investment.

Public Impact

The primary beneficiaries are the U.S. Air Force pilots and training commands who rely on the T-38C for advanced flight training. The contract delivers essential avionics component integration and ongoing contractor logistics support, ensuring the aircraft's airworthiness and operational capability. The geographic impact is likely concentrated around T-38C operating bases, primarily within the United States. Workforce implications include specialized technical roles for engineers, technicians, and logistics personnel involved in aircraft maintenance and support.

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 future sole-source risks.
Aging T-38C airframes may present unique maintenance and integration challenges beyond standard avionics upgrades.

Positive Signals

Fixed-price contract structure helps mitigate cost escalation risks.
Boeing's established relationship and expertise with the T-38C platform likely streamline integration and support.
Full and open competition suggests a market-driven price and a wide range of potential solutions were considered.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity and significant government procurement. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sub-sector, focusing on specialized avionics and support for a legacy training aircraft. The market for such specialized support is often dominated by original equipment manufacturers or firms with deep historical knowledge of the platform. Comparable spending benchmarks would typically involve other sustainment contracts for aging military aircraft fleets.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' (small business set-aside) field is false. While Boeing is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors, particularly in specialized areas of avionics or component manufacturing. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Air Force. Accountability measures are embedded in the firm-fixed-price contract type, which incentivizes the contractor to meet performance requirements within the agreed-upon budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

T-38 Talon Sustainment Programs
Air Force Training Aircraft Modernization
Avionics Systems Integration Contracts
Defense Contractor Logistics Support Services

Risk Flags

Potential for schedule delays in avionics integration.
Risk of component obsolescence impacting long-term supportability.
Dependence on a single contractor for critical logistics functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.5 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 $30.5 million.

What is the period of performance?

Start: 2020-04-01. End: 2021-03-31.

What is the historical spending trend for T-38C avionics integration and contractor logistics support over the past five years?

Analyzing historical spending for T-38C avionics integration and contractor logistics support requires accessing detailed contract databases. Without specific historical data for this exact contract line item, we can infer general trends. The T-38C is a legacy aircraft, meaning sustainment and modernization efforts are likely ongoing and potentially increasing as the fleet ages. Contracts for such support often span multiple years and can fluctuate based on specific upgrade cycles, component obsolescence issues, and overall fleet readiness requirements. It's common for the Air Force to award multiple delivery orders or task orders against indefinite-delivery/indefinite-quantity (IDIQ) contracts for sustainment, making year-over-year comparisons complex. However, a consistent or increasing level of spending on T-38C support would indicate a sustained commitment to maintaining this training platform.

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

Comparing the $30.5 million awarded to Boeing for T-38C avionics integration and logistics support to similar contracts for other DoD training aircraft requires careful consideration of several factors. The T-38C is a relatively unique platform, and its avionics suite may have specific integration complexities. Other training aircraft, such as the T-6 Texan II or T-1 Jayhawk, have different avionics systems and support requirements. Furthermore, contract scope can vary significantly; some contracts might focus solely on integration, while others include extensive logistics, maintenance, and upgrades. The 'br': 83843 data point, if it represents a prior contract value or benchmark, would be crucial for a direct comparison. Generally, contracts for legacy aircraft sustainment and modernization can be substantial due to the need to address obsolescence and maintain operational readiness, often involving firm-fixed-price structures to manage costs.

What are the key performance indicators (KPIs) used to measure the success of this contract, and what are Boeing's historical performance ratings on similar contracts?

Key performance indicators (KPIs) for this contract would likely revolve around the successful integration of specified avionics components, adherence to delivery schedules for parts and services, and the availability of contractor logistics support. Metrics such as aircraft mission capable rates, turnaround times for repairs, and the quality of integrated systems would be critical. Boeing's historical performance ratings on similar contracts within the Department of Defense are generally tracked through systems like the Contractor Performance Assessment Reporting System (CPARS). While specific ratings for this T-38C contract are not provided, Boeing, as a major defense contractor, typically has a portfolio of contracts with varying performance assessments. A review of CPARS data for Boeing's sustainment and integration contracts would offer insight into their track record regarding on-time delivery, cost control, and technical execution.

What is the projected lifespan of the T-38C fleet, and how does this contract contribute to extending its operational utility?

The T-38C Talon, first introduced in the 1960s, has undergone several upgrades to remain a viable training platform. Its projected lifespan is a subject of ongoing Air Force planning, with discussions often centering on extending its service life well into the 2030s or beyond, contingent on modernization efforts and funding. This contract for avionics component integration and contractor logistics support directly contributes to extending the T-38C's operational utility by ensuring its critical systems remain functional, technologically relevant, and supportable. By integrating updated avionics, the Air Force aims to enhance training capabilities, improve reliability, and potentially reduce maintenance costs associated with older components. The logistics support component is vital for keeping the aircraft flying safely and efficiently throughout its extended service life.

Are there any identified risks associated with the specific avionics components being integrated or the contractor's ability to provide sustained logistics support?

Risks associated with avionics integration can include technical challenges in interfacing new components with legacy systems, potential for software incompatibilities, and the availability of specialized technical expertise. For the T-38C, which has a long service history, ensuring seamless integration without compromising existing functionalities is a key concern. Contractor logistics support risks often involve supply chain disruptions, component obsolescence, and the contractor's capacity to meet demand. Given the T-38C's age, sourcing replacement parts and maintaining specialized knowledge for its unique systems can be challenging. The 'f' (concern strings) in the `wi` section highlights potential issues like cost overruns due to unforeseen technical challenges and dependence on a single contractor for critical support, which could lead to future sole-source risks 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: $30,518,812

Exercised Options: $30,518,812

Current Obligation: $30,518,812

Actual Outlays: $6,769,236

Subaward Activity

Number of Subawards: 39

Total Subaward Amount: $367,574,744

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