Boeing Awarded $34.2M Air Force Contract for AVCI CLS Year 8
Contract Overview
Contract Amount: $34,240,633 ($34.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-04-01
End Date: 2025-11-30
Contract Duration: 608 days
Daily Burn Rate: $56.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AVCI CLS YEAR 8
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $34.2 million to THE BOEING COMPANY for work described as: AVCI CLS YEAR 8 Key points: 1. Significant contract value of $34.2 million awarded to a major defense contractor. 2. Competition method is 'Full and Open', suggesting a competitive bidding process. 3. Risk is moderate, given the firm-fixed-price contract type and duration. 4. Sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing', crucial for defense readiness.
Value Assessment
Rating: good
The contract value of $34.2 million for AVCI CLS Year 8 appears reasonable for a multi-year support and sustainment contract. Benchmarking against similar long-term sustainment contracts for major aircraft platforms would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the required aircraft parts and auxiliary equipment.
Public Impact
Ensures continued operational readiness for Air Force aircraft through sustainment services. Supports a critical segment of the aerospace manufacturing supply chain. Impacts the Air Force's ability to maintain and repair its existing fleet.
Waste & Efficiency Indicators
Waste Risk Score: 56 / 10
Warning Flags
- Contract duration of 608 days.
- Potential for cost overruns if unforeseen technical issues arise.
- Reliance on a single large contractor for critical parts.
Positive Signals
- Awarded under full and open competition.
- Firm-fixed-price contract type limits cost risk.
- Supports essential defense capabilities.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. Spending in this area is critical for maintaining military readiness and technological superiority.
Small Business Impact
While the primary awardee is a large corporation, the contract may indirectly benefit small businesses within the aerospace supply chain that serve as subcontractors to The Boeing Company.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The firm-fixed-price contract type provides some level of cost control, but ongoing monitoring of performance and delivery is essential.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract duration.
- Potential for supply chain disruptions.
- Dependence on a single large supplier.
- Technical obsolescence of parts.
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 $34.2 million to THE BOEING COMPANY. AVCI CLS YEAR 8
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 $34.2 million.
What is the period of performance?
Start: 2024-04-01. End: 2025-11-30.
What is the historical performance of Boeing on similar AVCI CLS contracts?
Historical performance data on similar AVCI CLS contracts would provide valuable insight into Boeing's reliability, delivery timeliness, and adherence to quality standards. Past performance is a strong indicator of future success and can help assess potential risks related to schedule delays or product defects.
Are there any identified risks associated with the specific aircraft platforms supported by this contract?
Identifying risks associated with the specific aircraft platforms is crucial. This includes potential obsolescence of components, availability of specialized repair facilities, or unique maintenance challenges. Understanding these platform-specific risks helps in evaluating the overall effectiveness and long-term viability of the sustainment contract.
How does the unit cost of these aircraft parts compare to industry benchmarks?
Comparing the unit cost of these aircraft parts to industry benchmarks is essential for assessing value for money. If costs are significantly higher than comparable parts from other manufacturers or for similar platforms, it could indicate potential inefficiencies or a lack of competitive pressure, impacting overall taxpayer value.
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
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: $34,240,633
Exercised Options: $34,240,633
Current Obligation: $34,240,633
Subaward Activity
Number of Subawards: 42
Total Subaward Amount: $17,089,788
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: 2024-04-01
Current End Date: 2025-11-30
Potential End Date: 2025-11-30 00:00:00
Last Modified: 2025-02-05
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