Boeing awarded $28.5M for T-38C avionics integration and logistics support by the Air Force
Contract Overview
Contract Amount: $28,476,349 ($28.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-04-01
End Date: 2023-03-31
Contract Duration: 364 days
Daily Burn Rate: $78.2K/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 $28.5 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 was made under full and open competition, suggesting a competitive bidding process. 3. Pricing appears to be a firm-fixed-price structure, which transfers some cost risk to the contractor. 4. The contract duration is approximately one year, indicating a focused scope of work. 5. This contract supports the sustainment and modernization of a key training platform for pilots. 6. The geographic location of performance is Missouri, potentially impacting the local economy.
Value Assessment
Rating: good
The contract value of $28.5 million for a one-year period for avionics integration and logistics support for the T-38C appears reasonable given the specialized nature of military aircraft components and support. Benchmarking against similar complex avionics integration contracts for training aircraft suggests this falls within expected ranges. The firm-fixed-price structure provides cost certainty for the government, although it may not capture the absolute lowest price if significant unforeseen technical challenges arise.
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. The specific number of bidders is not provided, but this method generally promotes price discovery and allows the government to select the best value offer. The competitive nature suggests that The Boeing Company was selected based on its ability to meet the technical requirements and offer a competitive price.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives competitive offers, maximizing the value of taxpayer dollars.
Public Impact
Pilots training in the T-38C aircraft will benefit from updated avionics and reliable logistics support, enhancing training effectiveness. The U.S. Air Force's pilot training pipeline is supported, ensuring a steady supply of qualified aviators. The contract's performance in Missouri may create or sustain jobs within the aerospace and defense sector in that region. The T-38C, a vital training platform, will maintain its operational readiness, contributing to overall Air Force capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical complexities arise in avionics integration, despite the firm-fixed-price structure.
- Dependence on a single contractor for critical logistics support could pose a risk if performance issues emerge.
- The relatively short duration of the contract may necessitate future competitive procurements, leading to potential transition costs.
Positive Signals
- Awarded under full and open competition, suggesting a robust and fair bidding process.
- Firm-fixed-price contract type helps control costs and provides budget certainty for the government.
- Focus on avionics integration and logistics support addresses critical needs for the T-38C training platform.
Sector Analysis
The T-38C Talon is a twin-engine, supersonic jet trainer aircraft used by the U.S. Air Force and Navy. This contract falls within the aerospace manufacturing and defense services sector, specifically focusing on aircraft parts and auxiliary equipment. The market for military aircraft sustainment and modernization is substantial, with significant government spending allocated annually to ensure the readiness and technological relevance of its fleet. Comparable spending often involves complex integration of new systems into existing airframes and ongoing maintenance contracts.
Small Business Impact
This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, the prime contractor, The Boeing Company, is responsible for fulfilling the contract requirements. There is no explicit information on subcontracting plans for small businesses within the provided data. The absence of set-asides means that opportunities for small businesses would likely arise through Boeing's own subcontracting decisions, rather than direct government mandates.
Oversight & Accountability
The contract is subject to standard federal procurement oversight mechanisms. As a Department of Defense contract, it falls under the purview of the Department of Defense's Inspector General for audits and investigations. The firm-fixed-price contract type provides a degree of financial oversight by establishing a ceiling cost. Transparency is generally maintained through contract award databases like FPDS, where basic contract information is publicly available.
Related Government Programs
- T-38 Talon Sustainment Programs
- Air Force Pilot Training Modernization
- Aerospace Component Manufacturing
- Defense Contractor Logistics Support
- Military Aircraft Avionics Upgrades
Risk Flags
- Potential for schedule delays in avionics integration.
- Risk of cost growth if unforeseen technical issues arise.
- Dependence on contractor for critical logistics support.
- Need for future competitive procurements due to contract duration.
Tags
defense, air-force, missouri, full-and-open-competition, firm-fixed-price, avionics-integration, logistics-support, training-aircraft, t-38c, aerospace, component-manufacturing
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.5 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 $28.5 million.
What is the period of performance?
Start: 2022-04-01. End: 2023-03-31.
What is The Boeing Company's track record with T-38 Talon support contracts?
The Boeing Company has a long history of supporting various U.S. military aircraft, including the T-38 Talon. While specific details of past T-38 contracts awarded to Boeing are not detailed in this data snippet, the company's extensive experience in aerospace manufacturing, systems integration, and logistics support for complex platforms suggests a strong capability. Their involvement often spans decades for major aircraft types. Past performance evaluations on similar contracts would be crucial for a comprehensive assessment, but their position as a major defense contractor implies a significant existing relationship with the Air Force for aircraft sustainment.
How does the $28.5 million value compare to similar avionics integration and logistics support contracts for training aircraft?
The $28.5 million value for a one-year contract for avionics integration and contractor logistics support for the T-38C appears to be within a reasonable range for specialized military aircraft programs. Contracts for integrating advanced avionics systems into aging airframes, coupled with ongoing maintenance and parts support, can be substantial. For example, similar modernization efforts on other training platforms or even tactical aircraft can range from tens to hundreds of millions of dollars over their lifecycle. The firm-fixed-price nature of this award also suggests a defined scope, which helps in cost predictability compared to cost-plus contracts.
What are the primary risks associated with this specific contract for the government?
The primary risks for the government in this contract revolve around the successful integration of new avionics systems and the reliability of contractor logistics support. Despite the firm-fixed-price structure, unforeseen technical challenges during avionics integration could lead to delays or require contract modifications, potentially increasing overall costs. Dependence on The Boeing Company for critical logistics support also presents a risk; any performance degradation or supply chain disruptions from the contractor could impact T-38C operational readiness. Furthermore, the one-year duration necessitates future procurements, introducing potential transition risks and costs.
How effective is the T-38C platform in its current role, and how does this contract contribute to its effectiveness?
The T-38C Talon remains a highly effective and essential platform for advanced jet pilot training in the U.S. Air Force and Navy. Its supersonic capability and maneuverability provide aspiring pilots with crucial experience needed for frontline fighter and bomber aircraft. This contract directly contributes to the T-38C's effectiveness by ensuring its avionics systems are updated and that reliable logistics support is in place. Modernized avionics enhance the training realism and allow for the incorporation of newer training methodologies, while robust logistics support ensures high aircraft availability, maximizing training sorties and pilot progression.
What are the historical spending patterns for T-38C avionics and logistics support?
Historical spending on T-38C avionics and logistics support has been consistent, reflecting the aircraft's long service life and its critical role in pilot training. Over the years, the Air Force has undertaken various sustainment and upgrade initiatives for the T-38 fleet to maintain its relevance and operational capability. This includes periodic avionics modernization programs, engine overhauls, and ongoing contractor logistics support contracts. Annual spending can fluctuate based on the specific upgrade cycles and maintenance needs, but it represents a significant and continuous investment in ensuring the readiness of this vital training asset.
What is the significance of the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code for this contract?
The North American Industry Classification System (NAICS) code '336413 - Other Aircraft Parts and Auxiliary Equipment Manufacturing' signifies that the primary business activity related to this contract involves the production or integration of components and systems that are not complete aircraft but are essential for their operation and maintenance. This includes avionics, control systems, landing gear components, and other specialized parts. For this T-38C contract, it highlights that the work likely involves integrating new or upgraded avionics hardware and software, and providing the necessary parts and support services to keep these systems functioning optimally.
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: $28,476,349
Exercised Options: $28,476,349
Current Obligation: $28,476,349
Subaward Activity
Number of Subawards: 33
Total Subaward Amount: $5,412,143
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: 2022-04-01
Current End Date: 2023-03-31
Potential End Date: 2023-03-31 00:00:00
Last Modified: 2024-10-24
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