DoD awards Boeing $112M for KC-46 Maintenance Training System, impacting Other Aircraft Parts manufacturing
Contract Overview
Contract Amount: $112,346,734 ($112.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2016-07-06
End Date: 2027-12-31
Contract Duration: 4,195 days
Daily Burn Rate: $26.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: KC-46 MAINTENANCE TRAINING SYSTEM (MTS)
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $112.3 million to THE BOEING COMPANY for work described as: KC-46 MAINTENANCE TRAINING SYSTEM (MTS) Key points: 1. The contract value is substantial at over $112 million. 2. Boeing is the sole awardee, raising questions about competition. 3. The firm-fixed-price contract type aims to control costs. 4. This falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector.
Value Assessment
Rating: fair
The contract value of $112.3 million for a training system seems high, but specific benchmarks for such complex systems are difficult to ascertain without more detail on the system's scope and components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although listed as 'full and open competition,' the award went solely to The Boeing Company. This suggests either Boeing was the only viable bidder or the competition was structured in a way that favored a single source.
Taxpayer Impact: Taxpayer funds are being used for a critical training system for the KC-46 aircraft. The effectiveness of the competition directly impacts the value for money received.
Public Impact
Ensures readiness for KC-46 aircrews and maintenance personnel. Supports advanced training capabilities for a key military asset. Potential for technology transfer and skill development within the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clear competition despite 'full and open' designation.
- Potential for cost overruns if scope expands.
- Reliance on a single contractor for a critical training system.
Positive Signals
- Firm-fixed-price contract helps manage cost certainty.
- Long-term contract ensures sustained support for the training system.
- Award supports a major defense contractor.
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is a critical component of the broader aerospace and defense industry. Spending in this area is often driven by new platform development and sustainment requirements.
Small Business Impact
The data indicates no specific set-aside for small businesses. This contract, awarded to a large prime contractor, likely involves significant subcontracting opportunities, but direct small business participation is not evident from this record.
Oversight & Accountability
The award was made by the Department of the Air Force. Oversight will focus on contract performance, delivery schedules, and adherence to the firm-fixed-price terms to ensure taxpayer value.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for sole-source dependency despite competition designation.
- High contract value warrants close monitoring of performance and costs.
- Complexity of training systems can lead to scope creep and cost overruns.
- Lack of small business participation noted in the award.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, mo, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $112.3 million to THE BOEING COMPANY. KC-46 MAINTENANCE TRAINING SYSTEM (MTS)
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 $112.3 million.
What is the period of performance?
Start: 2016-07-06. End: 2027-12-31.
What specific components and functionalities does the KC-46 Maintenance Training System (MTS) include, and how do these justify the $112 million cost?
The KC-46 MTS likely encompasses a range of sophisticated training tools, potentially including full-flight simulators, part-task trainers, virtual reality modules, and computer-based training systems. The high cost is attributable to the complexity of simulating advanced aircraft systems, the need for high-fidelity fidelity, integration with existing Air Force training infrastructure, and the extensive development and testing required to meet stringent military specifications for the KC-46 tanker aircraft.
Given the 'full and open competition' designation but sole award to Boeing, what mechanisms were in place to ensure fair pricing and prevent potential monopolies?
While designated 'full and open,' the sole award to Boeing suggests they were the only offeror meeting the stringent technical requirements or possessing the necessary intellectual property for the KC-46 MTS. The government likely relied on pre-negotiated rates, historical cost data for similar systems, and potentially independent government cost estimates to validate the proposed price. However, the lack of competing bids inherently limits price discovery and competitive pressure.
How will the effectiveness of the KC-46 MTS be measured, and what are the key performance indicators for this contract?
Effectiveness will likely be measured through metrics such as trainee proficiency improvements, reduction in training time, simulator uptime and reliability, and feedback from instructors and trainees. Key performance indicators (KPIs) may include pass rates for critical maintenance tasks, the number of training hours delivered, adherence to safety standards during training, and the system's ability to accurately replicate real-world scenarios and malfunctions encountered on the KC-46 aircraft.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT/REPAIR SHOP EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134
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: $159,701,789
Exercised Options: $112,346,734
Current Obligation: $112,346,734
Subaward Activity
Number of Subawards: 129
Total Subaward Amount: $61,186,896
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-07-06
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-12-22
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