DoD Awards Boeing $19.8M for F-77 Aircraft Spares and Support Equipment for Australia and Qatar
Contract Overview
Contract Amount: $19,848,384 ($19.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-07-25
End Date: 2023-09-30
Contract Duration: 1,893 days
Daily Burn Rate: $10.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AWARD CONTRACT FOR F77 SPARES MATERIAL AND PECULIAR SUPPORT EQUIPMENT (PSE) IN SUPPORT OF TWO EACH AUSTRALIA AIRCRAFT AND TWO EACH QATAR AIRCRAFT.
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
Department of Defense obligated $19.8 million to THE BOEING COMPANY for work described as: AWARD CONTRACT FOR F77 SPARES MATERIAL AND PECULIAR SUPPORT EQUIPMENT (PSE) IN SUPPORT OF TWO EACH AUSTRALIA AIRCRAFT AND TWO EACH QATAR AIRCRAFT. Key points: 1. Significant award to The Boeing Company for specialized aircraft components. 2. Lack of competition raises questions about price discovery and value. 3. Long contract duration (2018-2023) may indicate complex requirements or potential for cost overruns. 4. Spending falls within the broad Defense sector, specifically Aircraft Manufacturing.
Value Assessment
Rating: questionable
The contract value of $19.8M for spares and support equipment is difficult to assess without specific unit costs or comparison data. The Cost Plus Fixed Fee (CPFF) structure can sometimes lead to higher costs if not tightly managed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This limits competitive pressure, potentially impacting the government's ability to secure the best possible price and value.
Taxpayer Impact: The lack of competition means taxpayers may not be benefiting from the most cost-effective pricing available in the market for these specialized parts.
Public Impact
Supports critical defense assets for allied nations (Australia, Qatar). Ensures operational readiness of specialized aircraft through provision of necessary parts. Potential for increased costs due to sole-source nature impacts taxpayer burden. Long-term support contract suggests ongoing need for these specific aircraft and their components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of clear performance metrics for value
- Long contract duration
Positive Signals
- Supports critical allied defense capabilities
- Addresses specific aircraft support needs
Sector Analysis
This award falls under the Aircraft Manufacturing sector, a critical component of the defense industrial base. Spending benchmarks for such specialized spares are highly variable, depending on the aircraft type and technology involved.
Small Business Impact
The awardee is The Boeing Company, a large prime contractor. There is no indication in the provided data that small businesses were involved as subcontractors or prime contractors in this specific award.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The CPFF structure necessitates robust oversight to ensure costs are reasonable and the fixed fee is justified.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for overpricing due to sole-source nature.
- Risk of cost overruns with CPFF contract type.
- Long contract duration increases exposure to changing economic conditions.
- Lack of transparency in pricing mechanisms.
- Dependence on a single supplier for critical components.
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.8 million to THE BOEING COMPANY. AWARD CONTRACT FOR F77 SPARES MATERIAL AND PECULIAR SUPPORT EQUIPMENT (PSE) IN SUPPORT OF TWO EACH AUSTRALIA AIRCRAFT AND TWO EACH QATAR 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 $19.8 million.
What is the period of performance?
Start: 2018-07-25. End: 2023-09-30.
What specific factors justified the sole-source award, and were alternative sourcing options explored?
Sole-source awards typically occur when only one responsible source can provide the required supplies or services. This could be due to proprietary technology, unique capabilities, or urgent needs. A thorough justification and approval process is required, and exploring alternatives, even if ultimately deemed unsuitable, is usually part of that process to ensure fair and reasonable pricing.
How will the government ensure cost control and value for money under the Cost Plus Fixed Fee structure for this long-duration contract?
Effective cost control under CPFF relies on stringent oversight of incurred costs, detailed audits, and clear definition of the fixed fee's basis. The government must actively monitor expenditures, negotiate reasonable cost ceilings, and ensure the contractor maintains efficient operations throughout the contract's extended period to prevent cost creep and maximize value.
What is the long-term strategic value of investing in F-77 aircraft support for allied nations?
Investing in support for allied F-77 aircraft strengthens international partnerships and interoperability, crucial for collective security. It ensures the operational readiness of key assets used by allies, contributing to regional stability and burden-sharing. This support can also foster goodwill and create opportunities for future defense cooperation and sales.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 14441 ASTRONAUTICS LN, HUNTINGTON BEACH, CA, 92647
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: $22,292,630
Exercised Options: $22,292,630
Current Obligation: $19,848,384
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA852612D0001
IDV Type: IDC
Timeline
Start Date: 2018-07-25
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2025-11-04
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