DoD awards Boeing $82M for Beyond Line of Sight (BLOS) aircraft manufacturing, with contract ending Dec 2025
Contract Overview
Contract Amount: $82,004,532 ($82.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-11-07
End Date: 2025-12-31
Contract Duration: 2,611 days
Daily Burn Rate: $31.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: BEYOND LINE OF SIGHT (BLOS)
Place of Performance
Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90808
Plain-Language Summary
Department of Defense obligated $82.0 million to THE BOEING COMPANY for work described as: BEYOND LINE OF SIGHT (BLOS) Key points: 1. Significant contract value of $82M awarded to a major defense contractor. 2. Sole-source award raises questions about price discovery and competition. 3. Long contract duration (2018-2025) may indicate complex, ongoing needs. 4. Aircraft manufacturing sector is critical for national defense capabilities.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the $82M price reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this sole-source contract may result in taxpayers paying a premium for the aircraft manufacturing services.
Public Impact
Ensures continued availability of critical Beyond Line of Sight (BLOS) aircraft capabilities for the Air Force. Supports a major defense contractor, potentially impacting jobs and the aerospace supply chain. Raises concerns about the government's ability to secure the best possible price without competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
Positive Signals
- Addresses critical defense need (BLOS)
- Awarded to established prime contractor
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing. Spending in this area is crucial for national security, but often involves high costs and complex technologies, making competitive sourcing vital.
Small Business Impact
No information is provided regarding small business participation in this contract. Sole-source awards to large prime contractors often limit opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets requirements. The Air Force must justify the lack of competition.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPFF)
- Long-term dependency on one supplier
- Limited transparency on pricing
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 $82.0 million to THE BOEING COMPANY. BEYOND LINE OF SIGHT (BLOS)
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 $82.0 million.
What is the period of performance?
Start: 2018-11-07. End: 2025-12-31.
What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without detailed documentation, it's difficult to ascertain the specific rationale, but it's crucial for the agency to demonstrate that competition was truly not feasible or would be detrimental to national security interests.
How does the Cost Plus Fixed Fee structure impact the government's ability to control costs on this $82M contract?
Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. While the fee is fixed, the overall cost can escalate if actual costs exceed projections. This structure places a greater burden on the government to meticulously monitor and audit costs to prevent overspending and ensure the fixed fee remains a fair profit.
What are the long-term implications of relying on a single contractor for critical BLOS aircraft manufacturing capabilities?
Long-term reliance on a single contractor can lead to vendor lock-in, reduced innovation due to lack of competitive pressure, and potential supply chain vulnerabilities. It also limits the government's flexibility to adapt to new technologies or changing requirements. Diversifying the supplier base or fostering competition where possible is generally advisable for critical capabilities.
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: 2401 E WARDLOW RD, LONG BEACH, CA, 90807
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $85,564,633
Exercised Options: $82,193,170
Current Obligation: $82,004,532
Actual Outlays: $4,181,246
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $1,854,755
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA861413D2002
IDV Type: IDC
Timeline
Start Date: 2018-11-07
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2026-03-26
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