DoD Awards Boeing $27.4M for C-17 Globemaster III Sustainment Amidst Limited Competition
Contract Overview
Contract Amount: $27,442,849 ($27.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-06-27
End Date: 2025-10-31
Contract Duration: 491 days
Daily Burn Rate: $55.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C-17 GLOBEMASTER III TOTAL SUSTAINMENT AND MINOR DEVELOPMENT.
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78226
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $27.4 million to THE BOEING COMPANY for work described as: C-17 GLOBEMASTER III TOTAL SUSTAINMENT AND MINOR DEVELOPMENT. Key points: 1. Significant contract value for aircraft sustainment, indicating ongoing reliance on the C-17 fleet. 2. Boeing is the sole provider for this specific sustainment, raising questions about competitive pricing. 3. Potential risk of cost overruns due to lack of competition and long-term sustainment needs. 4. Spending falls within the broad 'Aircraft Manufacturing' sector, but specific sustainment benchmarks are key.
Value Assessment
Rating: fair
The $27.4 million award for sustainment is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to potential market rates for similar complex aircraft sustainment 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 potentially leads to higher costs for the government.
Taxpayer Impact: Taxpayer funds are being used for this contract. The lack of competition means there's a higher risk of paying more than necessary for sustainment services.
Public Impact
Ensures continued operational readiness of the C-17 Globemaster III, a critical strategic airlift asset. Supports jobs within the aerospace manufacturing and sustainment sector, primarily with Boeing. Potential for increased costs to taxpayers due to the sole-source nature of the award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Long-term sustainment needs
Positive Signals
- Maintains critical military asset
- Supports established defense contractor
Sector Analysis
This contract falls under the Aircraft Manufacturing sector, specifically focusing on sustainment for a major military transport aircraft. Benchmarks for sustainment of similar large aircraft fleets would be relevant for comparison.
Small Business Impact
The contract is awarded to a large prime contractor, The Boeing Company. There is no indication of subcontracting opportunities for small businesses within this specific award notice.
Oversight & Accountability
The Department of the Air Force is the contracting agency. Oversight will be crucial to ensure the contractor meets performance requirements and to monitor costs given the sole-source nature of the award.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Potential for cost creep over the contract duration.
- Dependence on a single contractor for critical sustainment.
- Lack of transparency in price justification.
- Long-term sustainment needs may exceed initial estimates.
Tags
aircraft-manufacturing, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.4 million to THE BOEING COMPANY. C-17 GLOBEMASTER III TOTAL SUSTAINMENT AND MINOR DEVELOPMENT.
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 $27.4 million.
What is the period of performance?
Start: 2024-06-27. End: 2025-10-31.
What is the historical cost trend for C-17 sustainment, and how does this award compare?
Analyzing historical spending on C-17 sustainment is crucial. Without this data, it's challenging to determine if the $27.4 million award represents an increase, decrease, or stable cost compared to previous periods. Understanding the trend helps assess value for money and identify potential cost escalation drivers.
What are the specific sustainment requirements, and are there any viable alternatives to Boeing for these services?
The specific sustainment requirements need detailed examination. While Boeing is the original manufacturer, exploring if independent MRO providers or other aerospace firms could offer comparable services, even for specific components or tasks, is vital for future competition assessments and cost control.
How is performance being measured, and what are the key performance indicators (KPIs) for this sustainment contract?
Effective oversight requires clearly defined KPIs for this sustainment contract. Measuring metrics such as aircraft availability, turnaround time for repairs, and quality of work is essential. Robust performance monitoring ensures the government receives the contracted services and can justify the expenditure.
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: $67,662,043
Exercised Options: $67,662,043
Current Obligation: $27,442,849
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: 2024-06-27
Current End Date: 2025-10-31
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2025-10-28
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