DoD Awards Boeing $606M for C-17 LAIRCM Kits, Spares, and Installs Through 2026
Contract Overview
Contract Amount: $6,062,863 ($6.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-02-07
End Date: 2026-04-30
Contract Duration: 813 days
Daily Burn Rate: $7.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NAMP LAIRCM BLOCK 30 KITS, SPARES, AND INSTALLS IN SUPPORT OF THE C-17 GLOBEMASTER III
Place of Performance
Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90808
Plain-Language Summary
Department of Defense obligated $6.1 million to THE BOEING COMPANY for work described as: NAMP LAIRCM BLOCK 30 KITS, SPARES, AND INSTALLS IN SUPPORT OF THE C-17 GLOBEMASTER III Key points: 1. Significant contract value of $606.29 million for critical aircraft defense systems. 2. Sole-source award to Boeing raises questions about competition and potential price inflation. 3. Long contract duration (813 days) may limit flexibility and market responsiveness. 4. Focus on aircraft manufacturing sector, specifically for the C-17 Globemaster III.
Value Assessment
Rating: questionable
The contract value of $606.29 million is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives or previous contracts for similar systems.
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 lack of competition limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The absence of competition for this large contract could lead to inflated prices, directly impacting taxpayer funds allocated for defense.
Public Impact
Ensures continued operational readiness for the C-17 Globemaster III fleet. Supports advanced threat detection and countermeasures for aircrews. Potential for higher costs due to sole-source nature impacts defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Supports critical defense platform
- Long-term sustainment
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically supporting the C-17 Globemaster III. Spending benchmarks for similar sole-source sustainment contracts for major defense platforms can vary widely, but large values often warrant closer scrutiny.
Small Business Impact
The contract does not indicate any specific set-asides for small businesses, and the prime contractor is a large corporation. This suggests limited direct opportunities for small businesses within this specific award.
Oversight & Accountability
The sole-source nature of this award warrants robust oversight from the Department of Defense to ensure fair pricing and prevent potential waste, fraud, and abuse. Transparency in the justification for the sole-source award is crucial.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Potential for cost overruns due to non-competitive nature.
- Long contract duration may not adapt to evolving threats or technologies.
- Limited visibility into specific cost breakdowns for kits, spares, and installs.
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.1 million to THE BOEING COMPANY. NAMP LAIRCM BLOCK 30 KITS, SPARES, AND INSTALLS IN SUPPORT OF THE C-17 GLOBEMASTER III
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 $6.1 million.
What is the period of performance?
Start: 2024-02-07. End: 2026-04-30.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair and reasonable pricing?
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. To ensure fair pricing, the agency should conduct a thorough price analysis, potentially using historical data, cost realism assessments, or independent government cost estimates. Robust contract surveillance and negotiation strategies are essential to mitigate the risks associated with non-competitive awards.
What are the long-term implications of relying on sole-source contracts for critical defense systems like the LAIRCM?
Long-term reliance on sole-source contracts can stifle innovation and competition within the defense industrial base. It may lead to escalating costs over time as the incumbent contractor faces no market pressure to improve efficiency or reduce prices. Furthermore, it can create vendor lock-in, making it difficult and expensive to switch providers or adopt newer technologies in the future, potentially impacting overall defense readiness and modernization efforts.
How does the $606 million investment in LAIRCM kits and installations align with current and future threat assessments for the C-17 fleet?
This significant investment suggests a strong alignment with current and projected threat assessments that necessitate advanced countermeasures for the C-17 Globemaster III. The LAIRCM system is designed to protect against infrared-guided missiles, a persistent threat in many operational environments. The duration of the contract (ending in 2026) indicates a strategic commitment to maintaining this capability, implying that these threats are expected to remain relevant for the foreseeable future.
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: FA852621R0015
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: $6,062,863
Exercised Options: $6,062,863
Current Obligation: $6,062,863
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: 2024-02-07
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-12-18
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