Boeing Awarded $207M C-17 MX/MOD Contract by DoD, Sole-Source
Contract Overview
Contract Amount: $206,852,013 ($206.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-10-03
End Date: 2024-09-30
Contract Duration: 1,824 days
Daily Burn Rate: $113.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: C-17 MX/MOD
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
Department of Defense obligated $206.9 million to THE BOEING COMPANY for work described as: C-17 MX/MOD Key points: 1. Significant contract value of over $200 million for aircraft modification and maintenance. 2. Sole-source award to The Boeing Company raises questions about competition and potential cost efficiencies. 3. Contract duration extends to September 2024, indicating a long-term need. 4. Focus on aircraft manufacturing sector, specifically for C-17 aircraft.
Value Assessment
Rating: questionable
The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar services.
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 price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this substantial contract could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.
Public Impact
Ensures continued operational readiness of the C-17 fleet, vital for military logistics and transport. Supports jobs within The Boeing Company and its supply chain. Potential for increased costs due to sole-source nature impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing
Positive Signals
- Maintains critical aircraft capabilities
- Long-term contract provides stability
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending benchmarks for aircraft modification and maintenance can vary widely based on complexity and aircraft type, but large sole-source contracts warrant scrutiny.
Small Business Impact
The award to The Boeing Company, a large prime contractor, does not appear to directly benefit small businesses based on the provided data. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency. Oversight will be crucial to ensure cost control and adherence to the fixed fee, especially given the sole-source nature and CPFF structure.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee can incentivize higher costs.
- Long contract duration increases exposure to potential cost growth.
- Lack of clear small business participation.
- Potential for price creep without competitive pressure.
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $206.9 million to THE BOEING COMPANY. C-17 MX/MOD
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 $206.9 million.
What is the period of performance?
Start: 2019-10-03. End: 2024-09-30.
What is the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without further documentation, it's unclear if alternatives were explored or if this is a continuation of existing sole-source arrangements for C-17 sustainment.
How does the cost-plus-fixed-fee structure compare to historical data for similar C-17 modifications?
Cost-plus-fixed-fee contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee. Comparing this contract's fee and total cost to historical data for similar C-17 modifications is essential to identify potential cost inefficiencies or overpricing, especially in the absence of competition.
What mechanisms are in place to ensure the effectiveness and efficiency of the modifications and maintenance performed?
Effectiveness and efficiency are typically ensured through performance metrics, quality assurance surveillance plans (QASPs), and regular progress reviews. The Defense Contract Management Agency's oversight role is critical in monitoring contractor performance against these measures and ensuring the modifications meet operational requirements.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
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: $228,824,848
Exercised Options: $228,824,848
Current Obligation: $206,852,013
Actual Outlays: $9,595,328
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: 2019-10-03
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2026-01-12
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