DoD Awards Boeing $79M for C-17 HUD Retrofit, Raising Concerns Over Competition
Contract Overview
Contract Amount: $79,016,501 ($79.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-06-28
End Date: 2025-12-28
Contract Duration: 548 days
Daily Burn Rate: $144.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C-17 REPLACEMENT HEADS-UP DISPLAY RETROFIT
Place of Performance
Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90808
Plain-Language Summary
Department of Defense obligated $79.0 million to THE BOEING COMPANY for work described as: C-17 REPLACEMENT HEADS-UP DISPLAY RETROFIT Key points: 1. Significant contract value of $79M for aircraft component upgrade. 2. Sole-source award to Boeing limits competitive pricing and innovation. 3. Potential risk of overpayment due to lack of competition. 4. Spending falls within the Aircraft Manufacturing sector.
Value Assessment
Rating: questionable
The $79M award for C-17 HUD retrofits appears high without competitive benchmarking. The lack of competition makes it difficult to assess if this price is reasonable compared to potential alternatives or previous contracts for similar upgrades.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, awarded directly to The Boeing Company. This sole-source approach bypasses the competitive process, potentially leading to higher costs and reduced price discovery for the taxpayer.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for this C-17 upgrade, as there was no market pressure to drive down costs.
Public Impact
Air Force aircraft modernization efforts are impacted. Taxpayer funds are allocated for critical defense hardware. Potential for increased operational efficiency for C-17 fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competitive bidding
- High contract value
Positive Signals
- Addresses critical aircraft component need
- Supports existing C-17 fleet readiness
Sector Analysis
This contract falls under the Aircraft Manufacturing sector, specifically for avionics upgrades on the C-17 transport aircraft. Spending benchmarks in this niche area are hard to establish without competitive data.
Small Business Impact
The contract was awarded directly to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price is justified and that future procurements are competed where feasible.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for overpayment due to lack of price discovery.
- Limited transparency on justification for sole-source.
- No clear small business participation.
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 $79.0 million to THE BOEING COMPANY. C-17 REPLACEMENT HEADS-UP DISPLAY RETROFIT
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 $79.0 million.
What is the period of performance?
Start: 2024-06-28. End: 2025-12-28.
What is the justification for awarding this contract sole-source to Boeing, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without further documentation, it's difficult to ascertain the specific rationale. However, the contracting agency should have conducted a price analysis, potentially using historical data or independent cost estimates, to validate the reasonableness of the $79M award.
What are the potential risks associated with a sole-source procurement for aircraft retrofits like the C-17 HUD?
The primary risks include inflated pricing due to the absence of competition, limited innovation as the incumbent contractor faces no pressure to improve or offer cost-saving alternatives, and potential vendor lock-in. This can lead to higher long-term costs for the government and taxpayers, and potentially slower adoption of technological advancements.
How does this sole-source award impact the overall effectiveness and cost-efficiency of the C-17 program modernization?
A sole-source award can reduce cost-efficiency by eliminating competitive pressure that drives down prices. While it ensures the upgrade is performed by the likely expert (Boeing), the lack of competition might mean the Air Force is not getting the best possible value. The effectiveness of the HUD itself is likely high, but the procurement process raises questions about overall program cost-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 COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4060 N LAKEWOOD BLVD, LONG BEACH, CA, 90808
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: $79,016,501
Exercised Options: $79,016,501
Current Obligation: $79,016,501
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $69,674
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA852621D0001
IDV Type: IDC
Timeline
Start Date: 2024-06-28
Current End Date: 2025-12-28
Potential End Date: 2025-12-28 00:00:00
Last Modified: 2025-05-15
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