Boeing awarded $43.2M for F-15SA aircraft support, a sole-source contract with a 6-year duration
Contract Overview
Contract Amount: $43,201,054 ($43.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2014-09-05
End Date: 2020-03-31
Contract Duration: 2,034 days
Daily Burn Rate: $21.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::CL::IGF INTERIM CONTRACTOR SUPPORT FOR LAUNCH AND RECOVERY OF F-15SA AIRCRAFT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $43.2 million to THE BOEING COMPANY for work described as: IGF::CL::IGF INTERIM CONTRACTOR SUPPORT FOR LAUNCH AND RECOVERY OF F-15SA AIRCRAFT Key points: 1. Contract awarded to a single, established provider, raising questions about competitive pricing. 2. Long-term duration suggests a sustained need for specialized support services. 3. Fixed-price contract type aims to control costs, but initial pricing needs scrutiny. 4. Services are critical for maintaining the operational readiness of F-15SA aircraft. 5. Contract falls within professional, scientific, and technical services, a broad category. 6. Geographic location of performance is Missouri.
Value Assessment
Rating: fair
The contract's value of $43.2 million over six years for specialized aircraft support appears reasonable given the long-term nature and the sole-source award. However, without competitive bidding, it's difficult to benchmark against market rates or determine if the best possible value was achieved. The fixed-price structure provides some cost certainty, but the absence of competition means potential savings may have been forgone. Further analysis would require comparing the scope of services to similar sole-source contracts for aircraft maintenance and sustainment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one contractor possesses the necessary capabilities, security clearances, or proprietary knowledge to perform the required services. The lack of competition limits price discovery and may result in higher costs for the government compared to a fully competed contract. The justification for a sole-source award would need to be thoroughly reviewed to ensure it was appropriate.
Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price reductions typically driven by competitive bidding. This can result in less efficient use of public funds.
Public Impact
The primary beneficiaries are the U.S. Air Force units operating the F-15SA aircraft, ensuring their readiness and operational capability. Services delivered include contractor support for the launch and recovery of F-15SA aircraft, likely encompassing maintenance, logistics, and technical assistance. The geographic impact is concentrated in Missouri, where the contract is being performed. Workforce implications include the employment of skilled technicians and support staff by The Boeing Company in Missouri.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition, potentially increasing costs for taxpayers.
- Long contract duration (6 years) may not adapt well to evolving technological needs or market changes.
- Lack of transparency in the sole-source justification process could mask inefficiencies.
- Fixed-price contract, while aiming for cost control, might not reflect true market value without competition.
Positive Signals
- Contract awarded to a major defense contractor with a proven track record in aircraft support.
- Fixed-price contract type provides cost certainty for the government.
- Long-term duration indicates a stable, ongoing requirement for critical support services.
- Services directly support the operational readiness of key military assets (F-15SA).
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft sustainment and support services. The market for such services is dominated by large, established aerospace companies like Boeing, which possess the specialized knowledge and infrastructure required. Spending in this area is crucial for maintaining the operational readiness of military fleets. Comparable spending benchmarks would involve analyzing other long-term sustainment contracts for advanced fighter aircraft, considering factors like fleet size, aircraft complexity, and service scope.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the prime contractor, The Boeing Company, is a large aerospace firm. There is no explicit information regarding subcontracting plans for small businesses within this award. This suggests that the primary focus is on direct service provision by the prime, potentially limiting opportunities for small businesses to participate in this specific contract's value chain.
Oversight & Accountability
Oversight for this contract would likely be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded within the contract terms, including performance standards and payment schedules. Transparency is generally limited for sole-source awards, with justifications often classified or not publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- F-15 Aircraft Sustainment Programs
- Aerospace Defense Contractor Support
- Military Aircraft Maintenance Services
- Foreign Military Sales Support (F-15SA implies Saudi Arabia)
Risk Flags
- Sole-source award lacks competitive pricing.
- Long contract duration may not align with evolving needs.
- Potential for cost overruns due to lack of competition.
- Limited transparency in contract justification.
Tags
defense, department-of-defense, the-boeing-company, f-15sa-aircraft, aircraft-support, professional-scientific-and-technical-services, sole-source, definitive-contract, firm-fixed-price, missouri, long-term-contract, non-competed
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.2 million to THE BOEING COMPANY. IGF::CL::IGF INTERIM CONTRACTOR SUPPORT FOR LAUNCH AND RECOVERY OF F-15SA AIRCRAFT
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $43.2 million.
What is the period of performance?
Start: 2014-09-05. End: 2020-03-31.
What is the specific justification for awarding this contract on a sole-source basis to The Boeing Company?
The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services. This could be due to proprietary technology, unique capabilities, urgent and compelling needs where competition is not feasible, or if the contract is a follow-on to a previous competitive award where only one contractor can provide the necessary integration. For this contract, it's highly probable that Boeing's unique position as the manufacturer of the F-15SA aircraft, possessing all the original design, manufacturing, and technical data, is the primary driver for the sole-source designation. This allows for seamless integration of support services with the aircraft's complex systems, ensuring optimal performance and safety.
How does the $43.2 million contract value compare to similar F-15 support contracts, considering it's a sole-source award?
Directly comparing the $43.2 million value of this sole-source contract to similar F-15 support contracts is challenging without access to detailed service scopes and competitive benchmarks. Sole-source awards inherently lack the price discovery mechanism of competition, which often leads to higher unit costs or overall contract values compared to competed contracts for similar services. However, given that The Boeing Company is the original equipment manufacturer (OEM) for the F-15SA, their pricing might reflect specialized knowledge, proprietary data access, and integrated support that competitors would struggle to replicate. To assess value, one would need to analyze the specific deliverables (e.g., hours of support, types of maintenance, spare parts provisioning) and compare them against the OEM's cost structure and any available data on sustainment costs for comparable advanced fighter platforms, acknowledging the inherent limitations of a non-competitive award.
What are the key performance indicators (KPIs) or metrics used to evaluate Boeing's performance under this contract?
The provided data does not specify the key performance indicators (KPIs) or metrics used to evaluate Boeing's performance under this contract. However, for a contract involving the launch and recovery of F-15SA aircraft, typical performance metrics would likely include: aircraft availability rates, turnaround times for maintenance actions, response times for technical support, adherence to safety protocols, quality of repairs, and timely delivery of required parts or services. The contract's fixed-price nature suggests that performance failures could lead to financial penalties or impact future contract awards. The Defense Contract Management Agency (DCMA) would typically be responsible for monitoring these metrics and ensuring compliance with the contract's terms and conditions.
What is the historical spending trend for F-15SA aircraft support services provided by The Boeing Company?
The provided data only details this specific contract, awarded on September 5, 2014, with an end date of March 31, 2020, totaling $43.2 million. It does not offer historical spending trends for F-15SA support services by The Boeing Company. To establish a historical trend, one would need to access broader contract databases and financial reports from the Department of Defense, looking for previous contracts awarded to Boeing (or other entities) for the sustainment, maintenance, or operational support of F-15SA aircraft prior to or concurrent with this award. Analyzing such data would reveal patterns in spending, contract durations, and the evolution of support requirements over time.
What are the potential risks associated with a long-term (6-year) sole-source contract for aircraft support?
A long-term, sole-source contract for aircraft support presents several potential risks. Firstly, the lack of competition can lead to inflated prices and reduced value for money over the contract's duration, as the government does not benefit from competitive pressures. Secondly, the contractor may experience reduced incentives to innovate or improve efficiency, knowing that their position is secured. Thirdly, technological advancements in aircraft support or the F-15SA itself might occur, rendering the contracted services or the contractor's capabilities less optimal or even obsolete by the end of the term, with limited flexibility to adapt. Lastly, dependency on a single provider can create vulnerabilities if the contractor faces financial instability, operational disruptions, or changes in strategic focus.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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: $43,201,054
Exercised Options: $43,201,054
Current Obligation: $43,201,054
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-09-05
Current End Date: 2020-03-31
Potential End Date: 2020-03-31 00:00:00
Last Modified: 2020-08-12
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