DoD awards $28.9M for aircraft parts, with Boeing securing the contract under full and open competition
Contract Overview
Contract Amount: $28,889,953 ($28.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-04-01
End Date: 2026-03-31
Contract Duration: 364 days
Daily Burn Rate: $79.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CLS YEAR 9
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $28.9 million to THE BOEING COMPANY for work described as: CLS YEAR 9 Key points: 1. Contract awarded for aircraft parts, indicating ongoing sustainment needs for military aviation assets. 2. The fixed-price contract type suggests a defined scope and cost structure, potentially limiting cost overruns. 3. Boeing, a major aerospace manufacturer, is the incumbent contractor, implying a need for specialized knowledge or existing integration. 4. The contract duration of one year (364 days) suggests a need for immediate or short-term supply. 5. Awarded by the Department of the Air Force, this contract likely supports specific aircraft platforms. 6. The contract's value is moderate, suggesting it's part of a larger sustainment strategy rather than a major new acquisition.
Value Assessment
Rating: good
The contract value of approximately $28.9 million for a one-year period for aircraft parts appears reasonable given the supplier and the nature of defense procurement. Benchmarking against similar contracts for aircraft parts is challenging without more specific details on the exact components or services. However, for a major defense contractor like Boeing, this value is within a typical range for sustainment and parts orders. The firm fixed-price structure is a positive indicator for cost control.
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 had the opportunity to submit proposals. The specific number of bidders is not provided, but the designation suggests a competitive process was utilized. This approach is generally favored to ensure the government receives the best value by leveraging market competition.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages a wider range of suppliers to participate, potentially leading to more cost-effective solutions.
Public Impact
The primary beneficiaries are the U.S. Air Force units that rely on the specified aircraft parts for operational readiness. Services delivered include the provision of 'Other Aircraft Parts and Auxiliary Equipment'. The geographic impact is primarily within the United States, supporting Air Force operations and potentially maintenance facilities. Workforce implications include support for manufacturing and logistics jobs within Boeing and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for sole-source reliance on Boeing if competition is not consistently pursued for future needs.
- Dependence on a single large contractor can create supply chain vulnerabilities.
- The specific nature of 'Other Aircraft Parts' could mask critical components whose unavailability would have significant operational impact.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Firm fixed-price contract type provides cost certainty for the government.
- Boeing's established presence in aerospace suggests a high likelihood of meeting technical specifications and delivery timelines.
- The contract supports critical Air Force operational needs, ensuring readiness.
Sector Analysis
The aerospace and defense sector is characterized by high barriers to entry, significant R&D investment, and long product lifecycles. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sub-sector. Spending in this area is crucial for maintaining the operational readiness of military fleets. Comparable spending benchmarks would typically involve analyzing annual sustainment budgets for specific aircraft platforms or broader categories of spare parts across the DoD.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (sb: false). As a large prime contractor, Boeing is expected to manage its own supply chain, which may include subcontracting opportunities for small businesses. However, without specific subcontracting plans or goals outlined in the award details, the direct impact on the small business ecosystem is not immediately clear. Further analysis of subcontracting reports would be necessary to assess the extent of small business participation.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is generally maintained through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Aircraft Parts and Auxiliary Equipment
- Aircraft Maintenance and Repair
- Defense Logistics Support
- Air Force Sustainment Programs
- Aerospace Manufacturing Contracts
Risk Flags
- Potential for supply chain disruption
- Reliance on single large contractor
- Cost escalation risk if scope expands or competition wanes
- Impact on operational readiness if parts are critical and delayed
Tags
defense, department-of-defense, department-of-the-air-force, aircraft-parts, other-aircraft-parts-and-auxiliary-equipment-manufacturing, full-and-open-competition, firm-fixed-price, boeing, missouri, medium-value-contract, one-year-duration
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.9 million to THE BOEING COMPANY. CLS YEAR 9
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 $28.9 million.
What is the period of performance?
Start: 2025-04-01. End: 2026-03-31.
What is Boeing's track record with similar Department of Defense contracts for aircraft parts?
Boeing has an extensive and long-standing track record of supplying aircraft parts and services to the Department of Defense, including the Air Force. Historically, the company has been a primary contractor for major aircraft platforms such as the C-17, KC-46, and various fighter jets. Their performance on these contracts has varied, with periods of strong delivery and cost adherence, as well as instances of delays and cost overruns, particularly on complex development programs. For sustainment and parts contracts, Boeing generally demonstrates a capability to meet specifications, though the scale and complexity of the specific parts ordered in this $28.9 million award would influence the precise performance expectations and historical comparisons.
How does the $28.9 million value compare to typical annual spending on 'Other Aircraft Parts and Auxiliary Equipment' by the Air Force?
The $28.9 million award represents a moderate expenditure for the Air Force's 'Other Aircraft Parts and Auxiliary Equipment' category. Annual spending in this broad category can range into the billions of dollars, reflecting the vastness of the Air Force's fleet and its diverse sustainment needs. This specific contract, valued at approximately $28.9 million over one year, is likely a component of a larger sustainment strategy for one or more aircraft platforms. It is not indicative of the total annual spend but rather a specific procurement action. To provide a precise comparison, one would need to analyze historical spending data for the specific Product Service Code (PSC) or National Item Identification Number (NIIN) associated with these parts, if available.
What are the primary risks associated with this contract, given it's with a single large contractor like Boeing?
The primary risks associated with this contract, awarded to a single large contractor like Boeing, include potential over-reliance on one supplier, which can lead to reduced negotiating leverage for future contracts and potential price increases. There's also a risk of supply chain disruptions if Boeing faces internal production issues, labor strikes, or broader economic challenges affecting its operations. Furthermore, if the 'Other Aircraft Parts' are critical for specific, high-demand platforms, any delay or quality issue could significantly impact Air Force readiness. The firm fixed-price nature mitigates some cost risk for the government, but performance and delivery risks remain.
What does the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' classification imply about the services being procured?
The classification 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS code 336413) indicates that the contract is for the production or supply of components and accessories used in aircraft, which do not fall into more specific categories like engines or airframes. This could encompass a wide range of items such as landing gear components, avionics hardware, interior fittings, structural elements, or specialized tools and test equipment. The 'auxiliary equipment' aspect suggests items that support the primary function of the aircraft. The 'manufacturing' part implies that these parts are either being newly produced or are being supplied directly from a manufacturer's inventory.
How does the firm fixed-price (FFP) contract type influence the government's financial exposure and the contractor's risk?
The Firm Fixed-Price (FFP) contract type is generally considered favorable for the government when the scope of work is well-defined and risks are understood. Under an FFP contract, the contractor, Boeing in this case, agrees to a set price for the specified goods or services, regardless of the actual costs incurred. This provides the government with maximum cost certainty and limits financial exposure. For the contractor, an FFP contract carries the highest risk, as any cost overruns must be absorbed by the company. Conversely, if Boeing can deliver the parts more efficiently than anticipated, they stand to realize a higher profit margin. This structure incentivizes the contractor to manage costs effectively and deliver on time.
What is the significance of the contract being awarded in 'Missouri' (SN: MISSOURI)?
The 'SN: MISSOURI' designation indicates that the contract award is associated with the state of Missouri. This could mean that the primary place of performance for this contract, or a significant portion of it, is located in Missouri. For Boeing, Missouri is a key state for its aerospace operations, particularly in St. Louis, where it manufactures military aircraft and related components. This award could therefore support jobs and economic activity within Boeing's Missouri facilities and its local supply chain, contributing to the state's defense industrial base.
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: $28,889,953
Exercised Options: $28,889,953
Current Obligation: $28,889,953
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $8,703,316
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: 2025-04-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-01-08
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