DoD Awards $90.8M to Boeing for C-17 Fight Deck Obsolescence Resolution

Contract Overview

Contract Amount: $9,082,800 ($9.1M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2025-12-19

End Date: 2030-10-26

Contract Duration: 1,772 days

Daily Burn Rate: $5.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: RESOLVE OBSOLESCENCE IN THE C-17 FIGHT DECK THROUGH AN INTEGRATED, FUNCTIONAL, MODERNIZED, OPEN ARCHITECTURE SOLUTION APPROACH THAT ALSO PROVIDES DEVELOPMENT/UPDATES TO THE LABS AFFECTED.

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78226

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $9.1 million to THE BOEING COMPANY for work described as: RESOLVE OBSOLESCENCE IN THE C-17 FIGHT DECK THROUGH AN INTEGRATED, FUNCTIONAL, MODERNIZED, OPEN ARCHITECTURE SOLUTION APPROACH THAT ALSO PROVIDES DEVELOPMENT/UPDATES TO THE LABS AFFECTED. Key points: 1. Contract awarded to incumbent, Boeing, for critical C-17 aircraft modernization. 2. Focus on integrated, functional, and modernized open architecture for the fight deck. 3. Addresses obsolescence issues, ensuring continued operational capability for the Air Force. 4. Long-term contract duration (2030) suggests significant integration and sustainment needs.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar aircraft modernization contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, likely due to the specialized nature of C-17 aircraft systems and the incumbent's existing knowledge. This lack of competition may limit price discovery and potentially lead to higher costs.

Taxpayer Impact: Taxpayer funds are being used for a sole-source award, highlighting the need for robust oversight to ensure fair pricing and value for money.

Public Impact

Ensures continued operational readiness of the C-17 Globemaster III, a vital strategic airlift asset. Modernization of the fight deck improves pilot interface and system reliability. Addresses critical obsolescence, preventing potential mission failures or costly emergency repairs. Supports long-term sustainment and future upgradeability of a key military platform.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Defense sector, specifically aircraft manufacturing and sustainment. Spending on aircraft modernization is common to maintain fleet readiness and incorporate new technologies, but sole-source awards warrant scrutiny.

Small Business Impact

The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of small business participation in the provided data, suggesting potential missed opportunities for subcontracting.

Oversight & Accountability

Given the sole-source nature and cost-plus contract type, rigorous oversight by the Department of the Air Force is crucial to manage costs, ensure performance, and verify the necessity of all expenditures.

Related Government Programs

Risk Flags

Tags

aircraft-manufacturing, department-of-defense, tx, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.1 million to THE BOEING COMPANY. RESOLVE OBSOLESCENCE IN THE C-17 FIGHT DECK THROUGH AN INTEGRATED, FUNCTIONAL, MODERNIZED, OPEN ARCHITECTURE SOLUTION APPROACH THAT ALSO PROVIDES DEVELOPMENT/UPDATES TO THE LABS AFFECTED.

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 $9.1 million.

What is the period of performance?

Start: 2025-12-19. End: 2030-10-26.

What is the justification for not competing this critical modernization effort, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically relates to unique capabilities, proprietary technology, or the incumbent's intimate knowledge of the system. To ensure fair pricing, the government likely relies on cost analysis, historical pricing data, and negotiation with the contractor. Independent cost estimates and thorough review of the contractor's proposed costs are essential oversight mechanisms.

How will the Cost Plus Fixed Fee structure be managed to mitigate potential cost overruns and ensure value for taxpayer money?

Managing a CPFF contract requires stringent oversight of the contractor's direct costs and the fixed fee. The government must actively monitor all incurred costs, ensure they are reasonable and allocable to the contract, and scrutinize any proposed changes. Regular audits and performance reviews are critical to identify potential cost creep early and hold the contractor accountable for efficient execution.

What are the specific metrics and milestones used to assess the success of the 'integrated, functional, modernized, open architecture solution' and its impact on operational effectiveness?

Success metrics would likely include the successful integration of new components, achievement of defined functional requirements, adherence to open architecture principles (e.g., modularity, interoperability), and demonstrable improvements in system reliability and maintainability. Key performance indicators (KPIs) related to flight deck performance, reduced failure rates, and ease of future updates would be tracked against baseline data.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingAircraft Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA855724R0001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $266,616,651

Exercised Options: $265,064,248

Current Obligation: $9,082,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2025-12-19

Current End Date: 2030-10-26

Potential End Date: 2031-10-29 00:00:00

Last Modified: 2025-12-22

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