DoD Awards $47.1M for C-17 Weapons System Trainer to Boeing, Raising Value and Oversight Questions
Contract Overview
Contract Amount: $47,137,267 ($47.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-05-01
End Date: 2023-09-30
Contract Duration: 1,247 days
Daily Burn Rate: $37.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C-17 WEAONS SYSTEM TRAINER PURCHASE
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $47.1 million to THE BOEING COMPANY for work described as: C-17 WEAONS SYSTEM TRAINER PURCHASE Key points: 1. Significant contract value of $47.1 million for a specialized trainer. 2. Sole awardee, The Boeing Company, limits competitive pricing pressure. 3. Potential risks include vendor lock-in and ensuring cost-effectiveness. 4. Spending falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector.
Value Assessment
Rating: fair
The contract value of $47.1 million for a C-17 Weapons System Trainer appears substantial. Benchmarking against similar complex training systems is difficult without more detailed cost breakdowns, but the firm fixed-price nature suggests an attempt to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although the contract was awarded under full and open competition, the single award to The Boeing Company suggests they were the only viable bidder or offered the best value. This limits direct price comparison and may reduce competitive pressure on future modifications.
Taxpayer Impact: Taxpayer funds are being used for a critical training system. While competition was sought, the single award necessitates careful oversight to ensure the price reflects fair market value and avoids excessive costs over the contract's life.
Public Impact
Ensures continued readiness and training for C-17 aircrews and maintenance personnel. Supports advanced simulation capabilities for realistic combat and operational scenarios. Contributes to the overall operational effectiveness of the C-17 Globemaster III fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite full and open solicitation.
- Potential for cost overruns if scope expands.
- Reliance on a single contractor for critical training systems.
Positive Signals
- Firm fixed-price contract aims to control costs.
- Supports essential military training and readiness.
- Awarded to a known, experienced defense contractor.
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which includes specialized components and systems for aircraft. Spending in this area is often driven by specific platform needs and technological advancements, with significant R&D investment typical.
Small Business Impact
The data indicates this contract was not awarded to small businesses. The prime contractor, The Boeing Company, is a large aerospace corporation. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a structured procurement process. However, the single award necessitates robust oversight from the Department of the Air Force to monitor performance, manage costs, and ensure the contractor meets all contractual obligations.
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 on Boeing for future modifications.
- Lack of transparency on specific cost components for value assessment.
- Limited visibility into small business subcontracting.
- Need for ongoing performance monitoring to ensure training effectiveness.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.1 million to THE BOEING COMPANY. C-17 WEAONS SYSTEM TRAINER PURCHASE
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 $47.1 million.
What is the period of performance?
Start: 2020-05-01. End: 2023-09-30.
What specific performance metrics are in place to ensure the trainer effectively meets C-17 operational training requirements?
The contract likely includes detailed performance work statements (PWS) outlining specific training objectives, simulation fidelity requirements, and availability standards. The Air Force would monitor adherence to these metrics through regular progress reviews, user feedback from aircrews and instructors, and potentially independent testing to validate the trainer's effectiveness in preparing personnel for real-world missions.
How will the Air Force mitigate the risk of vendor lock-in and ensure competitive pricing for future trainer upgrades or sustainment?
To mitigate vendor lock-in, the Air Force should actively plan for future competition by developing modular trainer designs and maintaining detailed documentation. They can also explore options for independent sustainment or third-party support. For future upgrades, issuing new solicitations with clear performance-based requirements, rather than sole-source modifications, will be crucial to encourage new entrants and competitive pricing.
What is the projected return on investment for this trainer purchase in terms of improved C-17 operational readiness and reduced training costs?
The return on investment is expected through enhanced pilot and crew proficiency, leading to fewer mission failures and increased operational effectiveness. Furthermore, advanced simulators can reduce the need for expensive flight hours, fuel, and aircraft wear-and-tear, potentially offering significant long-term cost savings compared to purely flight-based training, though a precise ROI calculation would require detailed cost-benefit analysis.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
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: $47,327,609
Exercised Options: $47,137,267
Current Obligation: $47,137,267
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $30,223,821
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: 2020-05-01
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2023-03-08
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