DoD Awards Boeing $27.8M for T-38C Avionics Integration and Logistics Support
Contract Overview
Contract Amount: $27,776,451 ($27.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-04-01
End Date: 2024-03-31
Contract Duration: 365 days
Daily Burn Rate: $76.1K/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 $27.8 million to THE BOEING COMPANY for work described as: T-38C AVIONICS COMPONENT INTEGRATION AND CONTRACTOR LOGISTICS SUPPORT Key points: 1. Significant contract value for specialized avionics and logistics. 2. Boeing, a major defense contractor, is the sole awardee. 3. Potential risk associated with sole-source or limited competition for critical components. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: good
The $27.8 million award for avionics integration and contractor logistics support appears reasonable given the specialized nature of the T-38C aircraft and the scope of work. Benchmarking against similar complex avionics integration contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the data indicates a Delivery Order (DO) against an existing contract, which may have had its own competition history.
Taxpayer Impact: Taxpayer funds are being used for essential aircraft sustainment and modernization, ensuring operational readiness of the T-38C fleet.
Public Impact
Ensures continued operational readiness of the T-38C training aircraft. Supports advanced avionics integration, crucial for pilot training. Provides contractor logistics support, reducing the burden on Air Force maintenance personnel. Contributes to the defense industrial base by engaging a major aerospace manufacturer.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost creep if scope expands beyond initial estimates.
- Reliance on a single contractor for critical support functions.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type limits cost risk.
- Supports a vital training platform for the Air Force.
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining aging aircraft fleets and integrating modern avionics, supporting overall defense readiness.
Small Business Impact
The awardee is The Boeing Company, a large business. There is no explicit indication of small business participation in this specific delivery order, though Boeing likely utilizes a supply chain that includes small businesses for various components.
Oversight & Accountability
The Department of the Air Force is responsible for oversight of this contract. The firm fixed price nature and full and open competition suggest a degree of accountability in pricing and execution.
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 if scope is not tightly managed.
- Dependency on a single prime contractor for critical support.
- Aging aircraft platform may require increasingly specialized and costly support.
- Limited visibility into subcontractor performance and pricing.
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 $27.8 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 $27.8 million.
What is the period of performance?
Start: 2023-04-01. End: 2024-03-31.
What is the specific breakdown of costs for avionics integration versus contractor logistics support?
The provided data does not detail the cost breakdown between avionics integration and contractor logistics support. A more granular analysis would require access to the contract's detailed line-item breakdown. Understanding this split is crucial for assessing the value proposition of each component of the award.
What were the key factors that led to Boeing being selected as the awardee under full and open competition?
While awarded under full and open competition, the specific factors leading to Boeing's selection are not detailed. Typically, this involves a combination of technical capability, past performance, schedule adherence, and competitive pricing. The nature of T-38C specific expertise likely played a significant role.
How does the cost of this contract compare to previous sustainment or upgrade contracts for the T-38C fleet?
Direct comparison to previous T-38C contracts is not possible with the given data. However, the $27.8 million value for a one-year period of performance suggests a substantial investment in maintaining this aging but critical training platform. Inflation and evolving technological requirements would influence cost comparisons.
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: $27,776,451
Exercised Options: $27,776,451
Current Obligation: $27,776,451
Subaward Activity
Number of Subawards: 47
Total Subaward Amount: $14,944,039
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: 2023-04-01
Current End Date: 2024-03-31
Potential End Date: 2024-03-31 00:00:00
Last Modified: 2025-08-19
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