Air Force awards $75.9M Boeing contract for RHUD Retrofit Phase I, with no competition
Contract Overview
Contract Amount: $75,927,668 ($75.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-12-20
End Date: 2025-10-27
Contract Duration: 2,138 days
Daily Burn Rate: $35.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: RHUD RETROFIT PHASE I
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
Department of Defense obligated $75.9 million to THE BOEING COMPANY for work described as: RHUD RETROFIT PHASE I Key points: 1. Significant contract value of $75.9 million awarded to a single large business. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The contract spans over five years, indicating a long-term need for aircraft manufacturing services. 4. Awarded by the Department of the Air Force, suggesting a defense-specific requirement.
Value Assessment
Rating: questionable
Without competitive bids, it's difficult to assess if the $75.9 million price is optimal. The firm fixed price contract type offers some cost certainty, but the lack of comparison makes value assessment challenging.
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 may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The absence of competition could lead to taxpayers paying more than necessary for these aircraft manufacturing services.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. Limited visibility into the specific aircraft being retrofitted and the scope of work. Potential for reduced innovation and technological advancement without market pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
Positive Signals
- Firm fixed price contract type
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, which is a critical component of the defense industry. Spending in this sector is often characterized by high R&D costs and long production cycles.
Small Business Impact
The contract was awarded to The Boeing Company, a large business. There is no indication that small businesses were involved in this specific award, missing an opportunity for their participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution. Accountability for performance and cost management is crucial given the lack of competitive pressure.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- Potential for reduced innovation and technological advancement.
- Limited transparency into the specific requirements and justification for sole-source award.
- Long contract duration increases exposure to potential cost overruns or performance issues.
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 $75.9 million to THE BOEING COMPANY. RHUD RETROFIT PHASE I
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 $75.9 million.
What is the period of performance?
Start: 2019-12-20. End: 2025-10-27.
What specific justification was provided for not competing this contract, and how does it align with federal procurement regulations for sole-source awards?
Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. The justification would need to detail why other potential contractors could not fulfill the requirement, potentially due to unique capabilities, proprietary technology, or urgent needs. Without this specific justification, it's difficult to fully assess the necessity of the sole-source approach.
What are the key performance indicators (KPIs) for this contract, and how will the Air Force ensure Boeing meets them given the lack of competitive pressure?
The contract likely includes specific performance metrics related to delivery schedules, quality standards, and technical specifications for the RHUD retrofit. The Air Force will need robust contract management and surveillance processes to monitor Boeing's performance against these KPIs. Regular progress reviews, technical inspections, and adherence to the firm fixed price terms will be crucial for ensuring accountability and value realization.
What is the estimated cost savings the Air Force anticipates by awarding this contract as a sole-source versus a competitive process, if any?
Typically, sole-source contracts are expected to be more expensive than competitively awarded ones due to the absence of price pressure. If there are anticipated savings, they would likely stem from factors like reduced acquisition process costs, faster award timelines, or specific efficiencies Boeing offers. However, without a competitive benchmark, quantifying these savings is speculative and requires a thorough cost analysis by the agency.
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: $76,032,762
Exercised Options: $76,032,762
Current Obligation: $75,927,668
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: 2019-12-20
Current End Date: 2025-10-27
Potential End Date: 2025-10-27 00:00:00
Last Modified: 2025-04-28
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