Boeing Awarded $34.4M for Pegasus Combat Capability (PC2) Delivery Order by Air Force
Contract Overview
Contract Amount: $34,394,559 ($34.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-04-29
End Date: 2025-12-02
Contract Duration: 2,409 days
Daily Burn Rate: $14.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PEGASUS COMBAT CAPABILITY (PC2) DELIVERY ORDER 1
Place of Performance
Location: TUKWILA, KING County, WASHINGTON, 98108
Plain-Language Summary
Department of Defense obligated $34.4 million to THE BOEING COMPANY for work described as: PEGASUS COMBAT CAPABILITY (PC2) DELIVERY ORDER 1 Key points: 1. Significant contract value of $34.4 million for advanced combat capabilities. 2. Sole-source award to The Boeing Company, limiting competitive pricing. 3. Potential risk associated with a sole-source procurement for critical defense assets. 4. Spending falls within the Aircraft Manufacturing sector, a key area for defense.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed tightly. Without competitive bids, it's difficult to assess if the $34.4 million price represents fair market value.
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 a higher cost to the government.
Taxpayer Impact: The sole-source nature of this award raises concerns about potential overspending and the efficient use of taxpayer funds for this critical defense capability.
Public Impact
Enhances Air Force combat readiness with advanced capabilities. Supports a major defense contractor, potentially impacting jobs and industry. Procurement of specialized aircraft components requires significant investment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competitive bidding
Positive Signals
- Delivery of critical combat capability
- Long-term contract duration
Sector Analysis
This contract falls under the Aircraft Manufacturing sector, specifically for combat capabilities. Spending in this area is crucial for national defense, but competitive bidding is typically expected to ensure value.
Small Business Impact
The awardee is The Boeing Company, a large aerospace corporation. There is no indication that small businesses were involved in this specific delivery order, which is common for large sole-source defense contracts.
Oversight & Accountability
The contract is a delivery order under a larger award, suggesting some level of pre-existing oversight. However, the sole-source nature warrants close monitoring of costs and performance to ensure accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type increases cost risk.
- Potential for cost overruns.
- Lack of transparency in pricing due to no competition.
Tags
aircraft-manufacturing, department-of-defense, wa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.4 million to THE BOEING COMPANY. PEGASUS COMBAT CAPABILITY (PC2) DELIVERY ORDER 1
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 $34.4 million.
What is the period of performance?
Start: 2019-04-29. End: 2025-12-02.
What specific justification was provided for the sole-source award of the Pegasus Combat Capability (PC2) delivery order?
Sole-source awards typically require a strong justification, such as a unique capability only available from a single source, urgent need, or specific national security requirements. Without this information, it's difficult to fully assess the necessity of bypassing the competitive process and its potential impact on cost-effectiveness.
How will the cost-plus fixed fee structure be managed to prevent cost overruns and ensure value for taxpayer money?
Effective management of a cost-plus fixed fee contract requires rigorous oversight of incurred costs, detailed performance metrics, and clear communication channels. The Air Force must implement stringent auditing and reporting requirements to ensure that costs are reasonable and allocable, and that the fixed fee remains appropriate for the work performed.
What are the key performance indicators (KPIs) for this delivery order, and how will their achievement be measured to ensure the combat capability meets expectations?
Key performance indicators should focus on the successful integration and functionality of the Pegasus Combat Capability (PC2). This includes metrics related to system performance, reliability, operational readiness, and adherence to technical specifications. Regular testing, validation, and user feedback will be crucial to confirm that the delivered capability meets the Air Force's operational requirements.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 7755 E MARGINAL WAY S, SEATTLE, WA, 98108
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: $21,758,227
Exercised Options: $21,758,227
Current Obligation: $34,394,559
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA860919D0007
IDV Type: IDC
Timeline
Start Date: 2019-04-29
Current End Date: 2025-12-02
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2026-01-28
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