DoD's $216M C-17 Sustainment Contract Awarded to Boeing for FY26
Contract Overview
Contract Amount: $216,266,972 ($216.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-11-01
End Date: 2026-10-31
Contract Duration: 364 days
Daily Burn Rate: $594.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FY26 C-17 GLOBEMASTER III VIRTUAL FLEET COMMON AND UNIQUE LABOR SUSTAINMENT
Place of Performance
Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90808
Plain-Language Summary
Department of Defense obligated $216.3 million to THE BOEING COMPANY for work described as: FY26 C-17 GLOBEMASTER III VIRTUAL FLEET COMMON AND UNIQUE LABOR SUSTAINMENT Key points: 1. Significant contract value for aircraft sustainment. 2. Sole-source award to incumbent prime contractor raises competition concerns. 3. Potential for cost overruns due to lack of competitive pricing. 4. Focus on critical defense asset sustainment.
Value Assessment
Rating: questionable
The contract value of $216.27 million for one year of sustainment appears high without competitive benchmarking. The lack of competition makes it difficult to assess if this price is reasonable compared to potential alternatives or historical data 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 as there is no market pressure to drive down prices.
Taxpayer Impact: The lack of competition in this sole-source award could lead to inflated costs, impacting taxpayer funds allocated for defense sustainment.
Public Impact
Ensures continued operational readiness of the C-17 fleet, a critical strategic airlift asset. Supports jobs within the aerospace manufacturing and sustainment sector. Potential for reduced transparency in spending due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost creep
Positive Signals
- Ensures critical asset sustainment
- Supports incumbent contractor
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing and sustainment. Spending benchmarks for similar sole-source sustainment contracts can vary widely, but a lack of competition often leads to higher per-unit costs.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this sole-source contract. The primary awardee is a large corporation, suggesting limited direct opportunities for small businesses through this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste, fraud, or abuse. Robust auditing and performance monitoring will be crucial.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for cost overruns without competitive pressure.
- Lack of transparency in pricing justification.
- Dependence on a single contractor for critical asset sustainment.
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 $216.3 million to THE BOEING COMPANY. FY26 C-17 GLOBEMASTER III VIRTUAL FLEET COMMON AND UNIQUE LABOR SUSTAINMENT
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 $216.3 million.
What is the period of performance?
Start: 2025-11-01. End: 2026-10-31.
What is the historical cost trend for C-17 sustainment, and how does this award compare?
Historical cost data for C-17 sustainment would be essential to evaluate the reasonableness of this $216.27 million award. Without comparative figures, it's challenging to determine if this represents an increase or decrease in costs over time, especially given the sole-source nature which bypasses competitive pressures that typically drive down prices.
What are the specific risks associated with relying solely on Boeing for C-17 sustainment?
The primary risk is the lack of competitive pressure, potentially leading to inflated costs and reduced innovation. Dependence on a single provider can also create vulnerabilities if the contractor faces financial difficulties or supply chain disruptions, impacting the operational readiness of a critical defense asset.
How will the Air Force ensure cost-effectiveness and value for money in this sole-source contract?
The Air Force must implement rigorous cost-control measures, including detailed audits, performance-based metrics, and potentially independent cost estimates. Regular reviews of contractor performance and expenditures, alongside market research for future contract actions, are vital to ensure value despite the absence of direct competition.
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: FA852622R0023
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: $500,864,329
Exercised Options: $500,864,329
Current Obligation: $216,266,972
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: 2025-11-01
Current End Date: 2026-10-31
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2026-03-26
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