Boeing awarded $25.7M contract for NATO training system, with 2,520 days duration
Contract Overview
Contract Amount: $25,762,471 ($25.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-02-06
End Date: 2026-12-31
Contract Duration: 2,520 days
Daily Burn Rate: $10.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C17 NATO TRAINING SYSTEM
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $25.8 million to THE BOEING COMPANY for work described as: C17 NATO TRAINING SYSTEM Key points: 1. Contract value represents a significant investment in international military training capabilities. 2. The duration of the contract suggests a long-term need for sustained training support. 3. Fixed-price contract type aims to control costs for the government. 4. Awarded by the Department of the Air Force, indicating a focus on air power training. 5. The contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' but supports a training system. 6. Boeing's extensive experience in aerospace and defense likely influenced the award.
Value Assessment
Rating: good
The total contract value of $25.7 million over approximately 7 years (2520 days) averages to about $3.6 million per year. Without specific benchmarks for NATO training systems, direct comparison is difficult. However, the firm fixed-price structure suggests an expectation of cost control. The value appears reasonable for a complex, long-term training system, especially considering the provider's expertise.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple potential bidders had the opportunity to submit proposals. The specifics of the number of bidders are not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. This approach ensures the government seeks the best value from the widest possible pool of qualified contractors.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the chances of securing the most cost-effective solution and encourages market-wide innovation, ultimately leading to better use of public funds.
Public Impact
Allies within NATO benefit from enhanced and standardized training capabilities. The contract supports the delivery of a critical training system for military personnel. Geographic impact is likely global, supporting NATO's international training objectives. Workforce implications may include specialized technical and training personnel required to operate and maintain the system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep over the long contract duration if not managed tightly.
- Dependence on a single contractor for a critical training system could pose risks if performance falters.
Positive Signals
- Award to a major defense contractor with a proven track record in complex systems.
- Firm fixed-price contract provides cost certainty for the government.
- Long contract duration indicates a sustained and recognized need for the training system.
Sector Analysis
The defense sector, particularly within aerospace and simulation, is characterized by long-term contracts for complex systems. This contract for a NATO training system fits within the broader market for military simulation and training (MST), a segment valued in the billions globally. Boeing's position as a leading aerospace manufacturer allows it to compete for and execute such large-scale, technologically advanced programs. Benchmarking against similar international training system contracts would require access to proprietary data, but the scale aligns with significant defense procurements.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale system procurement awarded to a major prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, the primary awardee is Boeing, a large corporation, suggesting that the direct impact on the small business ecosystem through this specific award is likely indirect via subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The firm fixed-price nature provides some cost control. Transparency is generally maintained through contract award databases like FPDS. Accountability measures would be tied to performance metrics and delivery schedules outlined in the contract. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- NATO Support and Procurement Agency (NSPA) contracts
- US Air Force Training Systems
- Joint Simulation and Training Programs
- International Military Education and Training (IMET)
Risk Flags
- Long contract duration may increase risk of technological obsolescence.
- Dependence on a single prime contractor for critical training capabilities.
Tags
defense, department-of-defense, air-force, nato, training-system, full-and-open-competition, firm-fixed-price, aircraft-parts, missouri, boeing, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.8 million to THE BOEING COMPANY. C17 NATO TRAINING SYSTEM
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 $25.8 million.
What is the period of performance?
Start: 2020-02-06. End: 2026-12-31.
What is the specific nature of the NATO Training System being provided by Boeing?
The provided data identifies the contract as 'C17 NATO TRAINING SYSTEM' and classifies the North American Industry Classification System (NAICS) code as 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. While the specific details of the training system are not elaborated in the summary data, the 'C17' designation strongly suggests a connection to the Boeing C-17 Globemaster III strategic airlift aircraft. Therefore, it is highly probable that this contract supports the training systems, simulators, or related components necessary for operating and maintaining the C-17 aircraft for NATO allies who utilize this platform. This could encompass a range of elements from flight simulators and maintenance trainers to virtual reality training environments and curriculum development.
How does the $25.7 million contract value compare to typical spending on similar international training systems?
Benchmarking the $25.7 million contract value against similar international training systems is challenging without access to a comprehensive database of comparable procurements. However, the duration of the contract (2520 days, approximately 7 years) suggests a sustained investment. Annualized, the contract value is approximately $3.6 million per year. This figure appears reasonable for a specialized training system, especially one tied to a complex platform like the C-17. Major defense training systems, particularly those involving advanced simulation or integrated platforms, can range from tens to hundreds of millions of dollars over their lifecycle. Given Boeing's role as a prime contractor for the C-17, this value likely reflects the cost of developing, delivering, and maintaining sophisticated training capabilities tailored to the platform's operational requirements for allied forces.
What are the primary risks associated with a long-duration contract like this for a training system?
Long-duration contracts, such as this 7-year agreement, present several inherent risks. Firstly, there's the risk of technological obsolescence; training systems, even for established platforms, may need updates to remain relevant as technology evolves or operational doctrines change. Secondly, contractor performance risk is amplified over a longer period; maintaining consistent quality and responsiveness from Boeing throughout the contract's life is crucial. Thirdly, cost escalation risk, although mitigated by the firm fixed-price structure, can still emerge through unforeseen issues or change requests that require contract modifications. Finally, geopolitical shifts or changes in allied defense priorities could potentially impact the long-term need or scope of the training system, although the initial award suggests a strong current requirement. Effective program management and clear performance metrics are essential to mitigate these risks.
What is Boeing's track record with the C-17 program and similar training systems?
Boeing has an extensive and well-established track record with the C-17 Globemaster III program, having been the original manufacturer and sustainment provider for the aircraft. This includes the development and provision of various training systems and simulators integral to the C-17's operational readiness. Their experience spans decades, encompassing design, production, logistics, and lifecycle support for complex military platforms. Boeing is a recognized leader in aerospace and defense, with a history of delivering sophisticated training solutions for numerous aircraft types and military systems. This deep familiarity with the C-17 platform and a proven history in developing and managing large-scale defense contracts suggest a strong capability to fulfill the requirements of this NATO training system award.
How does the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code align with a 'NATO Training System' contract?
The classification of this contract under NAICS code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' might seem indirect for a 'training system.' However, this code encompasses a broad range of activities related to aircraft components and systems that are not elsewhere classified. Training systems, particularly those involving simulators, integrated diagnostic equipment, or specialized maintenance trainers, often incorporate or are built upon aircraft-specific hardware, avionics, and control systems. Therefore, the manufacturing or integration of components that are essential parts of the training system, or the system itself if it's considered a specialized piece of 'equipment' for aircraft operations, could fall under this classification. It reflects the tangible, hardware-centric nature of the training solution being procured.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JAMES S 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: $25,762,471
Exercised Options: $25,762,471
Current Obligation: $25,762,471
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $34,032
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862115D6266
IDV Type: IDC
Timeline
Start Date: 2020-02-06
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-01-27
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