Boeing awarded $28.4M for T-38C avionics integration and logistics support by the Air Force

Contract Overview

Contract Amount: $28,421,524 ($28.4M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2021-04-01

End Date: 2022-03-31

Contract Duration: 364 days

Daily Burn Rate: $78.1K/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 $28.4 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 integration and ongoing logistics for the T-38C training aircraft. 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. The duration of the contract is one year, indicating a need for immediate or short-term support. 5. The specific nature of avionics integration suggests a technically complex and specialized requirement. 6. Logistics support is crucial for maintaining the operational readiness of the T-38C fleet.

Value Assessment

Rating: good

The contract value of $28.4 million for a one-year period for avionics integration and logistics support for a specialized training aircraft appears reasonable. Benchmarking against similar complex aircraft support contracts would provide further context, but the fixed-price nature suggests an effort to manage costs effectively. The specific details of the avionics integration and the scope of logistics support are key to a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and innovative solutions. The Air Force likely sought proposals that best met the technical and cost requirements for the T-38C avionics and logistics.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government is not limited to a single provider, potentially driving down costs through market forces.

Public Impact

The primary beneficiaries are the U.S. Air Force pilots undergoing training, who rely on the T-38C's operational readiness. The contract delivers essential avionics integration services to modernize or maintain aircraft systems. It also provides contractor logistics support, ensuring the availability and maintainability of the T-38C fleet. The geographic impact is likely concentrated around T-38C training bases, supporting flight operations and maintenance personnel. Workforce implications include specialized roles for engineers, technicians, and logistics personnel involved in aircraft support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if integration complexities are underestimated.
Risk of supply chain disruptions impacting component availability for logistics support.
Dependence on a single contractor for critical avionics and logistics functions.

Positive Signals

Fixed-price contract type helps mitigate cost escalation risks.
Full and open competition suggests a robust selection process for the most capable offeror.
Boeing's established experience with military aircraft platforms provides a degree of confidence in execution.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity, stringent regulatory requirements, and significant government investment. Contracts for aircraft component integration and logistics support are common within this sector, often involving specialized engineering and maintenance services. The T-38C, a long-serving supersonic jet trainer, requires ongoing support to remain operationally relevant. Spending in this area is benchmarked against the overall defense budget allocated for aircraft sustainment and modernization, with values varying based on the specific aircraft type, age, and technological upgrades required.

Small Business Impact

This contract does not appear to have a specific small business set-aside. However, large prime contractors like Boeing are often required to subcontract a portion of their work to small businesses. The extent to which small businesses will participate in this contract through subcontracting opportunities will depend on Boeing's subcontracting plan and the availability of qualified small business vendors for specific components or services.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Air Force, likely through contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services and components. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

T-38 Talon Sustainment Programs
Advanced Pilot Training Aircraft Support
Aerospace Component Manufacturing
Defense Logistics and Maintenance Services
Avionics Modernization Contracts

Risk Flags

Potential for obsolescence in avionics components.
Risk of schedule delays due to integration complexity.
Dependence on contractor for critical logistics support.
Cybersecurity risks associated with integrated avionics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.4 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 $28.4 million.

What is the period of performance?

Start: 2021-04-01. End: 2022-03-31.

What is Boeing's track record with T-38C support contracts or similar military aircraft avionics integration?

Boeing has a long-standing relationship with the U.S. military and extensive experience in aircraft manufacturing, modification, and sustainment. While specific details on their T-38C avionics integration contracts are not readily available in public databases, the company has a proven history with various trainer and combat aircraft programs. Their expertise in complex systems integration, including avionics, is well-established across numerous platforms such as the F-15, F/A-18, and C-17. This background suggests a strong capability to undertake the required avionics integration and logistics support for the T-38C, although performance on this specific contract will depend on execution details and the specific challenges encountered with the T-38C's aging systems.

How does the $28.4 million contract value compare to historical spending on T-38C avionics and logistics?

Direct historical spending comparisons for this specific contract are challenging without access to detailed historical procurement data for the T-38C program. However, the $28.4 million award for a one-year period for avionics integration and contractor logistics support (CLS) for a fleet of training aircraft is within a typical range for such specialized services. Annual sustainment costs for aging aircraft fleets can vary significantly based on the scope of work, number of aircraft, and the complexity of upgrades. Given the T-38C's role as a primary jet trainer and its operational history, annual spending on its sustainment, including avionics and logistics, could range from tens to hundreds of millions of dollars depending on the year and specific modernization efforts undertaken. This $28.4 million appears to represent a specific task order or a defined period of support rather than the total lifecycle cost.

What are the primary risks associated with this avionics integration and logistics support contract?

The primary risks associated with this contract include technical challenges in integrating new or updated avionics into an older airframe like the T-38C, which could lead to schedule delays and cost overruns. Obsolescence of existing components and the availability of spare parts for logistics support present another significant risk, potentially impacting aircraft readiness. Furthermore, the reliance on a single contractor for critical functions introduces program risk if performance issues arise or if the contractor faces financial instability. Cybersecurity vulnerabilities within the integrated avionics systems also pose a growing concern. Finally, ensuring consistent and effective performance over the contract duration requires robust government oversight and contractor commitment.

How effective is the T-38C aircraft in its role as a training platform, and how does this contract support that effectiveness?

The T-38C Talon remains a vital supersonic jet trainer for the U.S. Air Force and NASA, providing essential training for pilots destined for advanced fighter and bomber aircraft. Its performance characteristics and flight envelope are crucial for developing the high-G maneuvering skills and tactical awareness required for frontline aviation. This contract directly supports the T-38C's effectiveness by ensuring its avionics systems are integrated and functioning correctly, which is critical for realistic training scenarios and safety. The contractor logistics support component is equally vital, as it ensures the aircraft are available for training sorties, minimizing downtime due to maintenance and repairs. Without reliable avionics and robust logistics, the T-38C's ability to fulfill its training mission would be severely compromised.

What are the historical spending trends for T-38C sustainment and modernization by the Department of Defense?

Historical spending on T-38C sustainment and modernization by the Department of Defense has been substantial over its decades of service. While specific annual figures fluctuate, the Air Force has consistently allocated significant funds to keep the T-38 fleet operational and relevant. This includes expenditures on routine maintenance, depot-level repairs, component upgrades, and periodic avionics modernization efforts. Over the past decade, there have been discussions and initiatives regarding potential replacement or more comprehensive upgrades for the T-38C fleet to address aging issues and evolving training needs. Spending trends reflect a continuous effort to balance operational readiness with the costs associated with maintaining an older, yet critical, training platform. The total annual spending can range from tens of millions to over a hundred million dollars, depending on the scope of sustainment activities and specific modernization projects undertaken in a given fiscal year.

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: $28,421,524

Exercised Options: $28,421,524

Current Obligation: $28,421,524

Subaward Activity

Number of Subawards: 40

Total Subaward Amount: $16,651,983

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