DoD Awards Boeing $22.6M for LAIRCM Kits & Installs, Extending to 2026
Contract Overview
Contract Amount: $22,634,108 ($22.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-06-13
End Date: 2026-03-31
Contract Duration: 2,848 days
Daily Burn Rate: $7.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LAIRCM BLOCK 30 GROUP A KITS&INSTALLS
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
Department of Defense obligated $22.6 million to THE BOEING COMPANY for work described as: LAIRCM BLOCK 30 GROUP A KITS&INSTALLS Key points: 1. Significant contract value of $22.6 million for critical aircraft defense systems. 2. Sole-source award to Boeing raises questions about competition and potential cost savings. 3. Long contract duration (2018-2026) suggests ongoing need but also potential for price creep. 4. Focus on Aircraft Manufacturing sector highlights specialized defense procurement.
Value Assessment
Rating: fair
The contract value of $22.6 million for LAIRCM kits and installations appears reasonable given the specialized nature of the equipment and the sole-source award. However, without competitive bids, it's difficult to definitively assess if this represents the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning Boeing was the only vendor considered. This limits price discovery and may result in higher costs than if the contract had been competed.
Taxpayer Impact: The lack of competition for this sole-source award means taxpayers may be paying a premium for these critical defense systems.
Public Impact
Enhances survivability of Air Force aircraft against missile threats. Supports advanced electronic warfare capabilities for national security. Long-term sustainment ensures operational readiness of key assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Long contract duration.
- Lack of clear small business participation.
Positive Signals
- Provides critical defense technology.
- Supports advanced aircraft survivability.
- Long-term commitment ensures availability.
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is often characterized by high R&D costs, long production cycles, and significant government oversight due to national security implications. Benchmarks are difficult without specific system comparisons.
Small Business Impact
The data provided does not indicate any specific set-asides for small businesses. Given the sole-source nature of the award to a large prime contractor like Boeing, it's unlikely that small businesses were directly involved in this specific contract action, though they may be subcontractors.
Oversight & Accountability
The long duration and sole-source nature of this contract warrant close oversight to ensure fair pricing and effective delivery. Regular performance reviews and cost audits would be advisable to maintain accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Limited small business participation visibility
- Long contract duration
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.6 million to THE BOEING COMPANY. LAIRCM BLOCK 30 GROUP A KITS&INSTALLS
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 $22.6 million.
What is the period of performance?
Start: 2018-06-13. End: 2026-03-31.
What is the estimated per-unit cost for the LAIRCM kits and installations, and how does it compare to industry benchmarks for similar systems?
The provided data does not offer a per-unit cost breakdown. The total award is $22.6 million over a period of approximately 2848 days. Without a quantity of kits or installation hours, a direct per-unit cost cannot be calculated. Industry benchmarks for such advanced systems are highly proprietary and vary significantly based on specific capabilities and integration complexity.
What are the specific risks associated with a sole-source award for critical defense systems like LAIRCM, particularly concerning long-term sustainment?
The primary risk of a sole-source award is the potential for inflated costs due to a lack of competitive pressure. For long-term sustainment, this can lead to higher maintenance and upgrade expenses over the system's lifecycle. It also creates vendor lock-in, making it difficult and costly to switch providers if performance or pricing becomes unsatisfactory.
How effective is the LAIRCM system in protecting Air Force aircraft, and has its effectiveness been independently verified?
The LAIRCM (Large Aircraft Infrared Countermeasures) system is designed to protect large aircraft from infrared-guided missiles. While specific operational effectiveness data is often classified, the continued procurement and long-term sustainment by the Department of Defense suggest it is considered an effective and necessary capability. Independent verification would likely be part of internal DoD testing and evaluation processes.
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: 14441 ASTRONAUTICS LN, 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: $25,885,230
Exercised Options: $22,634,108
Current Obligation: $22,634,108
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA852612D0001
IDV Type: IDC
Timeline
Start Date: 2018-06-13
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-03-26
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