DoD Awards $18M for KC-46 Initial Spare Parts, Raising Questions on Value and Competition
Contract Overview
Contract Amount: $17,996,418 ($18.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-10-01
End Date: 2027-10-01
Contract Duration: 730 days
Daily Burn Rate: $24.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: KC-46 INITIAL SPARE PARTS FOR TINKER AFB 424TH (UNRESTRICTED). DELIVERY ORDER WILL BE PLACED OFF OF THE KC-46 INITIAL SPARES (KIS) MULTIPLE AWARD PROGRAM.
Place of Performance
Location: TUKWILA, KING County, WASHINGTON, 98108
Plain-Language Summary
Department of Defense obligated $18.0 million to THE BOEING COMPANY for work described as: KC-46 INITIAL SPARE PARTS FOR TINKER AFB 424TH (UNRESTRICTED). DELIVERY ORDER WILL BE PLACED OFF OF THE KC-46 INITIAL SPARES (KIS) MULTIPLE AWARD PROGRAM. Key points: 1. The contract is for initial spare parts for the KC-46 aircraft at Tinker AFB. 2. Boeing is the sole awardee, raising concerns about competition and potential price inflation. 3. The contract value is $17.99 million, with a duration of two years. 4. The award is a delivery order under an existing multiple-award program, but the specific competition method for this order is unclear.
Value Assessment
Rating: questionable
The contract value of $17.99 million for initial spare parts needs further scrutiny. Without a clear benchmark or comparison to similar contracts for other aircraft types or even other KC-46 spare parts orders, it's difficult to assess if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
While the contract is placed off of a Multiple Award Program, the specific competition for this delivery order is not detailed. If the order was not competed among eligible awardees, it limits price discovery and potentially leads to higher costs.
Taxpayer Impact: The lack of robust competition for these critical spare parts could result in taxpayers paying more than necessary.
Public Impact
Ensures operational readiness of the KC-46 tanker fleet by providing essential spare parts. Supports the Air Force's sustainment efforts for a key strategic asset. Potential for increased costs due to limited competition could impact overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition for delivery order
- Potential for price escalation
- Lack of detailed justification for sole awardee
Positive Signals
- Supports critical aircraft sustainment
- Utilizes existing multiple award contract vehicle
Sector Analysis
This contract falls within the aerospace manufacturing sector, specifically focusing on aircraft parts. Spending in this area is crucial for maintaining military readiness, but often involves high-value, specialized components where competition can be challenging.
Small Business Impact
The data indicates this contract was not set aside for small businesses and that small business participation is not explicitly mentioned. This suggests that larger prime contractors are likely fulfilling the order, with limited direct opportunities for small businesses in this specific award.
Oversight & Accountability
The use of a multiple-award program is a positive step for oversight, but the specific competition process for this delivery order needs to be transparent to ensure accountability and prevent potential cost overruns.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of transparency in delivery order competition
- Potential for inflated pricing due to limited competition
- No clear indication of small business subcontracting opportunities
- High value of contract for initial spares
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, wa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.0 million to THE BOEING COMPANY. KC-46 INITIAL SPARE PARTS FOR TINKER AFB 424TH (UNRESTRICTED). DELIVERY ORDER WILL BE PLACED OFF OF THE KC-46 INITIAL SPARES (KIS) MULTIPLE AWARD PROGRAM.
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 $18.0 million.
What is the period of performance?
Start: 2025-10-01. End: 2027-10-01.
What was the competitive process used to select Boeing for this specific delivery order under the KC-46 Initial Spares Multiple Award Program?
The provided data states the award is a 'Delivery Order' placed off of the 'KC-46 Initial Spares (KIS) Multiple Award Program'. However, it does not specify if this particular order was competed among the multiple awardees or if it was awarded directly to Boeing without further competition. Clarification on the solicitation and evaluation process for this specific order is needed to understand the extent of competition.
How does the per-unit cost of these KC-46 initial spare parts compare to industry benchmarks or similar parts for other military aircraft?
A direct comparison of per-unit costs is not possible with the provided data. To assess value for money, a detailed breakdown of the parts included in this $17.99 million contract and their individual costs would be required. Benchmarking against historical data for similar components or prices from other aircraft programs would be necessary for a thorough assessment.
What is the long-term strategy for ensuring competitive pricing for ongoing KC-46 spare parts procurement beyond this initial set?
The long-term strategy for competitive pricing is not detailed in the provided data. While this is an 'initial' spares order, future procurements should prioritize robust competition among all eligible awardees on the KIS program. Exploring options like performance-based logistics or strategic sourcing could also enhance long-term cost-effectiveness and ensure sustained value for taxpayers.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7755 E MARGINAL WAY S, TUKWILA, 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: $17,996,418
Exercised Options: $17,996,418
Current Obligation: $17,996,418
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $982,002
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA860922DB010
IDV Type: IDC
Timeline
Start Date: 2025-10-01
Current End Date: 2027-10-01
Potential End Date: 2027-10-01 00:00:00
Last Modified: 2025-09-23
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