Boeing's C-17 India Whitetail Program UCA contract awarded $236M by Air Force
Contract Overview
Contract Amount: $235,981,481 ($236.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-03-30
End Date: 2019-08-22
Contract Duration: 510 days
Daily Burn Rate: $462.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C-17 INDIA WHITETAIL PROGRAM UCA
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
Department of Defense obligated $236.0 million to THE BOEING COMPANY for work described as: C-17 INDIA WHITETAIL PROGRAM UCA Key points: 1. Significant contract value of $236M for aircraft manufacturing. 2. Sole-source award to The Boeing Company indicates limited competition. 3. Potential risk associated with single-vendor reliance for critical aircraft. 4. Spending falls within the Defense sector, specifically aircraft manufacturing.
Value Assessment
Rating: fair
The contract value of $236M for the C-17 India Whitetail Program UCA is substantial. Without specific benchmarks for this particular program or comparable sole-source aircraft modifications, a precise value assessment is difficult. However, the absence of competition inherently limits price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, The Boeing Company, was considered. This significantly limits price discovery and competition, potentially leading to higher costs than if multiple vendors had bid.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the most competitive pricing possible, as there was no opportunity for other manufacturers to bid on the contract.
Public Impact
Taxpayers funded a large contract for aircraft modification. The program supports the Department of the Air Force's strategic capabilities. Reliance on a single contractor raises questions about long-term sustainment and cost control.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of small business participation noted.
- Contract duration and potential for cost overruns.
Positive Signals
- Supports critical defense aircraft manufacturing.
- Awarded to a known, established aerospace manufacturer.
Sector Analysis
This contract falls under the Defense sector, specifically within aircraft manufacturing. Spending benchmarks for sole-source aircraft modifications can vary widely based on complexity and program specifics. The $236M awarded is a significant investment in maintaining and upgrading specialized aircraft.
Small Business Impact
The data indicates that small businesses were not directly involved in this contract, as indicated by 'sb: false'. This suggests that the prime contractor, Boeing, likely handled the entire scope of work or subcontracted to other large entities, missing an opportunity for small business engagement.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution. The Department of the Air Force should monitor performance closely and ensure justification for continued sole-source awards if applicable.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Lack of small business participation.
- Potential for price escalation due to single vendor.
- Contract duration and performance monitoring needed.
- Limited transparency on specific program justification.
Tags
aircraft-manufacturing, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $236.0 million to THE BOEING COMPANY. C-17 INDIA WHITETAIL PROGRAM UCA
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 $236.0 million.
What is the period of performance?
Start: 2018-03-30. End: 2019-08-22.
What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing without competition?
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. The Air Force would have conducted a price analysis based on historical data, cost breakdowns, and market research to determine fair and reasonable pricing, even without competitive bids. However, the absence of competition inherently reduces the pressure for the lowest possible price.
What are the potential risks associated with relying solely on The Boeing Company for the C-17 India Whitetail Program UCA, particularly concerning long-term sustainment and future upgrades?
Sole-source reliance can lead to vendor lock-in, where the government becomes dependent on a single supplier, potentially facing higher prices for future sustainment, parts, and upgrades. It also limits the government's flexibility to switch to more cost-effective solutions or leverage innovations from other manufacturers. This dependence could impact long-term operational readiness and budget predictability.
How does the $236M expenditure for the C-17 India Whitetail Program UCA align with the Air Force's broader aircraft modernization and sustainment strategies?
This expenditure likely supports the Air Force's strategy to maintain and enhance the operational capabilities of its C-17 fleet, which is crucial for global mobility and strategic airlift. Understanding the specific role of the 'India Whitetail Program UCA' within this broader strategy is key. Without more program details, it's difficult to assess its alignment, but significant investments are generally made to ensure fleet readiness and effectiveness.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5301 BOLSA AVE, HUNTINGTON BEACH, CA, 92647
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: $235,981,481
Exercised Options: $235,981,481
Current Obligation: $235,981,481
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $5,998,958
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-03-30
Current End Date: 2019-08-22
Potential End Date: 2019-08-22 00:00:00
Last Modified: 2018-09-05
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