Air Force Awards $63.5M to Boeing for C-17 Globemaster III BLOS Retrofit Kits
Contract Overview
Contract Amount: $63,491,554 ($63.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-03-22
End Date: 2027-07-18
Contract Duration: 1,213 days
Daily Burn Rate: $52.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C-17 GLOBEMASTER III BEYOND LINE-OF-SITE (BLOS) RETROFIT KITS MATERIALS
Place of Performance
Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90808
Plain-Language Summary
Department of Defense obligated $63.5 million to THE BOEING COMPANY for work described as: C-17 GLOBEMASTER III BEYOND LINE-OF-SITE (BLOS) RETROFIT KITS MATERIALS Key points: 1. Significant investment in critical aircraft upgrade for the Air Force. 2. Sole-source award to Boeing raises questions about price discovery and competition. 3. Long-term contract duration (over 3 years) suggests substantial program scope. 4. Retrofit kits indicate a focus on enhancing existing fleet capabilities.
Value Assessment
Rating: questionable
The contract value of $63.5M for retrofit kits is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential alternatives or previous similar procurements.
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 potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential retrofit kits.
Public Impact
Enhances C-17 Globemaster III operational capabilities for the U.S. Air Force. Supports the sustainment and modernization of a key strategic airlift asset. Potential impact on future defense procurement strategies regarding sole-source awards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Modernization of critical aircraft
- Supports Air Force mission readiness
Sector Analysis
This contract falls within the aerospace and defense sector, specifically aircraft manufacturing and modification. Spending benchmarks for such specialized retrofit kits are highly variable and depend on technological complexity and integration requirements.
Small Business Impact
The data indicates no specific set-aside for small businesses in this sole-source award. Boeing, as a large prime contractor, is likely to subcontract portions of this work, but direct small business participation is not evident from this award notice.
Oversight & Accountability
Oversight will be crucial to ensure Boeing delivers the retrofit kits on time and within budget, especially given the sole-source nature of the award. The Air Force should monitor performance closely to validate cost-effectiveness.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited transparency in cost justification
- Long-term contract duration may mask inefficiencies
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 $63.5 million to THE BOEING COMPANY. C-17 GLOBEMASTER III BEYOND LINE-OF-SITE (BLOS) RETROFIT KITS MATERIALS
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 $63.5 million.
What is the period of performance?
Start: 2024-03-22. End: 2027-07-18.
What is the specific technological advancement provided by the Beyond Line-of-Sight (BLOS) retrofit kits, and how does it enhance the C-17's operational effectiveness?
The BLOS retrofit kits are designed to equip the C-17 Globemaster III with advanced communication and navigation systems, enabling operations beyond the standard line-of-sight limitations. This enhancement is crucial for missions requiring extended reach, secure data transmission, and improved situational awareness in contested environments, thereby increasing the aircraft's survivability and mission flexibility.
What justification was provided for awarding this contract on a sole-source basis instead of pursuing a competitive procurement process?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For specialized retrofit kits like these, the justification might stem from unique technical expertise, proprietary technology, or the need for seamless integration with existing C-17 systems, where Boeing, as the original manufacturer, is the only viable option.
How will the effectiveness and value for money of these retrofit kits be assessed post-delivery, given the lack of upfront competition?
Effectiveness and value will be assessed through rigorous testing, operational performance metrics, and post-delivery reviews. The Air Force will likely track key performance indicators related to the BLOS capabilities, such as communication reliability, data throughput, and mission success rates. Comparing actual performance against contract requirements and projected benefits will determine the overall value for money.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA852619R0009
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: $63,491,554
Exercised Options: $63,491,554
Current Obligation: $63,491,554
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $4,592,631
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: 2024-03-22
Current End Date: 2027-07-18
Potential End Date: 2028-03-21 00:00:00
Last Modified: 2025-12-17
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