DoD's $430M C-17 Labor Sustainment Contract Awarded to Boeing for FY23
Contract Overview
Contract Amount: $429,920,265 ($429.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-10-01
End Date: 2023-09-30
Contract Duration: 364 days
Daily Burn Rate: $1.2M/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FY23 VIRTUAL-FLEET-COMMON AND UNIQUE LABOR SUSTAINMENT FOR C17 FLEET.
Place of Performance
Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90808
Plain-Language Summary
Department of Defense obligated $429.9 million to THE BOEING COMPANY for work described as: FY23 VIRTUAL-FLEET-COMMON AND UNIQUE LABOR SUSTAINMENT FOR C17 FLEET. Key points: 1. Significant contract value for aircraft sustainment. 2. Sole awardee, Boeing, dominates C-17 manufacturing and support. 3. Potential risk due to lack of competition. 4. Spending falls within the Aircraft Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $430M for FY23 labor sustainment appears substantial. Benchmarking against similar large-scale sustainment contracts for major defense platforms is necessary to assess its reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Boeing. This limits price discovery and may result in higher costs compared to a competitive environment.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for sustainment services.
Public Impact
Ensures continued operational readiness of the C-17 fleet. Supports critical logistics and transport capabilities for the Air Force. Impacts the aerospace and defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Ensures critical fleet sustainment
- Supports established platform
Sector Analysis
This contract falls under the Aircraft Manufacturing sector, specifically focusing on labor sustainment for the C-17 airlifter. Spending benchmarks for similar large-scale sustainment efforts for major defense platforms are typically in the hundreds of millions.
Small Business Impact
The data indicates no specific set-aside for small businesses. Given the nature of the contract and the sole-source award to a large prime contractor, small business participation is likely indirect through subcontracts.
Oversight & Accountability
Oversight would focus on contract performance, cost control, and ensuring the contractor meets all labor sustainment requirements for the C-17 fleet.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns
- Dependency on a single contractor
- Limited transparency in pricing
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 $429.9 million to THE BOEING COMPANY. FY23 VIRTUAL-FLEET-COMMON AND UNIQUE LABOR SUSTAINMENT FOR C17 FLEET.
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 $429.9 million.
What is the period of performance?
Start: 2022-10-01. End: 2023-09-30.
What is the historical cost trend for C-17 labor sustainment, and how does this $430M award compare?
Analyzing historical spending data for C-17 labor sustainment is crucial. If this $430M represents a significant increase over previous years without justification (e.g., expanded scope, inflation), it raises concerns about value for money. Without historical context, it's difficult to definitively assess if this award is reasonable or if costs are escalating.
What are the risks associated with a sole-source award for critical aircraft sustainment?
Sole-source awards for critical sustainment pose risks of reduced competition, potentially leading to inflated prices and less incentive for innovation or efficiency. It also creates a dependency on a single provider, which could be problematic if that provider faces financial difficulties or changes strategic priorities. Ensuring robust contract management and performance metrics is vital to mitigate these risks.
How effectively does this contract ensure the long-term operational readiness of the C-17 fleet?
The effectiveness hinges on the contractor's performance in delivering the specified labor sustainment services. Key performance indicators (KPIs) related to aircraft availability, maintenance turnaround times, and skilled labor deployment are critical. Regular performance reviews and adherence to service level agreements will determine if the contract truly supports the C-17's long-term operational readiness.
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
Solicitation ID: FA852620R0005
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4060 N LAKEWOOD BLVD, LONG BEACH, CA, 90808
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: $429,920,265
Exercised Options: $429,920,265
Current Obligation: $429,920,265
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA852621D0001
IDV Type: IDC
Timeline
Start Date: 2022-10-01
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2024-08-30
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