DoD Seeks $4.8M DMSMS Contract for KC-46 Program Amidst Aircraft Manufacturing Needs

Contract Overview

Contract Amount: $4,800,000 ($4.8M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2026-01-08

End Date: 2027-01-08

Contract Duration: 365 days

Daily Burn Rate: $13.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE UNITED STATES GOVERNMENT (USG) AND THE KC-46 PROGRAM OFFICE SEEKS TO ESTABLISH A DIMINISHING MANUFACTURING SOURCES AND MATERIAL SHORTAGES (DMSMS) CONTRACT TO PREPARE, IDENTIFY, ASSESS, AND ANALYZE ENTERPRISE-WIDE SOLUTIONS.

Place of Performance

Location: TUKWILA, KING County, WASHINGTON, 98108

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $4.8 million to THE BOEING COMPANY for work described as: THE UNITED STATES GOVERNMENT (USG) AND THE KC-46 PROGRAM OFFICE SEEKS TO ESTABLISH A DIMINISHING MANUFACTURING SOURCES AND MATERIAL SHORTAGES (DMSMS) CONTRACT TO PREPARE, IDENTIFY, ASSESS, AND ANALYZE ENTERPRISE-WIDE SOLUTIONS. Key points: 1. The contract aims to address enterprise-wide solutions for diminishing manufacturing sources and material shortages. 2. Boeing is the sole contractor, raising questions about competition and potential price discovery. 3. The focus on critical aircraft manufacturing components highlights a significant supply chain risk. 4. This initiative falls under the Aircraft Manufacturing sector, with a specific NAICS code of 336411.

Value Assessment

Rating: questionable

The contract value is $4.8 million for a 365-day period. Without comparative data on similar DMSMS contracts for large aircraft programs, assessing its pricing is difficult. The firm fixed-price structure provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract is 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 the government.

Taxpayer Impact: The absence of competition could lead to taxpayers bearing a higher cost for essential aircraft manufacturing support.

Public Impact

Ensures continued readiness and operational capability of the KC-46 fleet by addressing potential part shortages. Supports the long-term sustainment of a critical military asset, reducing risks of obsolescence. Invests in proactive measures to mitigate supply chain vulnerabilities within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Potential for cost overruns due to lack of competitive bidding.
Reliance on a single contractor for critical supply chain analysis.

Positive Signals

Addresses a critical need for aircraft manufacturing sustainment.
Proactive approach to mitigate future supply chain disruptions.
Supports a key defense program (KC-46).

Sector Analysis

This contract operates within the Aircraft Manufacturing sector, specifically addressing Diminishing Manufacturing Sources and Material Shortages (DMSMS). Spending in this area is crucial for maintaining the longevity and operational readiness of complex defense systems like the KC-46.

Small Business Impact

The data indicates this contract is not set aside for small businesses and is awarded to a large prime contractor, Boeing. There is no information provided on subcontracting opportunities for small businesses within this specific award.

Oversight & Accountability

The contract is managed by the Department of the Air Force within the Department of Defense. Oversight will likely focus on ensuring the contractor effectively identifies, assesses, and analyzes solutions for DMSMS issues related to the KC-46 program.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award
Potential for cost overruns
Reliance on a single contractor
Lack of transparency in pricing
Limited market research evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.8 million to THE BOEING COMPANY. THE UNITED STATES GOVERNMENT (USG) AND THE KC-46 PROGRAM OFFICE SEEKS TO ESTABLISH A DIMINISHING MANUFACTURING SOURCES AND MATERIAL SHORTAGES (DMSMS) CONTRACT TO PREPARE, IDENTIFY, ASSESS, AND ANALYZE ENTERPRISE-WIDE SOLUTIONS.

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 $4.8 million.

What is the period of performance?

Start: 2026-01-08. End: 2027-01-08.

What is the projected long-term cost savings from proactively addressing DMSMS for the KC-46 program?

The long-term cost savings from proactively addressing DMSMS are expected to be substantial by preventing costly last-minute sourcing efforts, redesigns, or mission-impacting delays. By identifying and analyzing solutions early, the government can secure more favorable pricing and ensure the continued availability of critical components, thereby extending the operational life of the KC-46 fleet and avoiding potentially higher expenditures associated with obsolescence management.

What are the specific risks associated with a sole-source award for DMSMS analysis in a critical defense program?

The primary risks of a sole-source award for DMSMS analysis in a critical defense program include a lack of competitive pressure on pricing, potentially leading to inflated costs for the government. It also limits the exploration of diverse solutions or innovative approaches that other qualified firms might offer. Furthermore, over-reliance on a single contractor can create dependencies and vulnerabilities if that contractor faces performance issues or internal challenges.

How will the effectiveness of the DMSMS solutions be measured and validated throughout the contract period?

The effectiveness of the DMSMS solutions will likely be measured through key performance indicators (KPIs) established in the contract. These could include the number of critical shortages identified and resolved, the timeliness of analysis and solution proposals, cost savings achieved through recommended actions, and the successful integration of alternative or redesigned components. Regular reporting and milestone reviews by the Air Force program office will be crucial for validating the contractor's progress and the impact of their findings.

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: FIRM FIXED PRICE (J)

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: $9,600,000

Exercised Options: $9,600,000

Current Obligation: $4,800,000

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