DoD Awards Boeing $25M for BFAS TDL Production Lots 2-3, Ending 2030
Contract Overview
Contract Amount: $25,061,303 ($25.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2030-01-31
End Date: 2030-01-31
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: BFAS TDL PRODUCTION LOTS 2-3
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $25.1 million to THE BOEING COMPANY for work described as: BFAS TDL PRODUCTION LOTS 2-3 Key points: 1. Significant award to a single, large defense contractor. 2. Limited competition due to the nature of the product. 3. Potential for cost overruns in fixed-price incentive contracts. 4. Aircraft manufacturing sector is critical for national defense.
Value Assessment
Rating: fair
The contract value of $25M for production lots 2-3 appears reasonable for specialized aircraft components. However, without specific per-unit cost data or comparison to similar, recently awarded contracts for comparable systems, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition scenario, likely due to specialized requirements or existing contractor capabilities. This lack of competition may limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: The absence of competition could result in taxpayers paying a premium for these aircraft components compared to a scenario with multiple bidders.
Public Impact
Ensures continued production of critical aircraft components for the Air Force. Supports a major defense contractor and its supply chain. Impacts readiness and operational capabilities of Air Force assets. Long-term contract duration suggests sustained need for the system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Fixed-price incentive contract type can lead to cost overruns
- Sole-source award
Positive Signals
- Award to established prime contractor
- Clear delivery end date
- Contract supports critical defense need
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a key component of the broader aerospace and defense industry. Spending in this sector is heavily influenced by government defense budgets and geopolitical factors. Benchmarks for similar production lots are difficult to ascertain without proprietary data.
Small Business Impact
There is no indication of small business participation in this specific contract award. As a sole-source award to a large prime contractor, opportunities for small businesses may be limited unless subcontracted.
Oversight & Accountability
Oversight will be crucial to monitor performance and costs under the fixed-price incentive structure. The Department of the Air Force is responsible for ensuring the contractor meets delivery schedules and quality standards, with potential for audits.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns due to FPI contract type
- Sole-source award limits market competition
- Long-term contract duration may lock in costs
- Dependence on a single supplier
Tags
aircraft-manufacturing, department-of-defense, ok, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.1 million to THE BOEING COMPANY. BFAS TDL PRODUCTION LOTS 2-3
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 $25.1 million.
What is the period of performance?
Start: 2030-01-31. End: 2030-01-31.
What is the specific justification for the sole-source award, and were alternative acquisition strategies considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the need for compatibility with existing systems. Agencies must document why full and open competition is not feasible. Alternative strategies might include market research for potential competitors or phased approaches to encourage future competition.
How does the fixed-price incentive (FPI) contract structure mitigate risks of cost overruns for the government?
FPI contracts establish a target cost, target profit, and a price ceiling. While the government shares in cost savings if the final cost is below the target, it also shares in cost increases up to the ceiling. This structure incentivizes the contractor to control costs but still exposes the government to potential cost growth beyond the target.
What are the key performance indicators (KPIs) being tracked to ensure the effectiveness and timely delivery of these production lots?
Key performance indicators likely include on-time delivery rates, adherence to technical specifications and quality standards, and cost performance against the target. The Air Force would monitor these through regular program reviews, inspections, and contractor reporting to ensure the successful and efficient execution of the contract.
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: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 6001 S AIR DEPOT BLVD, OKLAHOMA CITY, OK, 73135
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: $44,449,531
Exercised Options: $44,449,531
Current Obligation: $25,061,303
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $49,718
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862819D1000
IDV Type: IDC
Timeline
Start Date: 2030-01-31
Current End Date: 2030-01-31
Potential End Date: 2030-01-31 00:00:00
Last Modified: 2025-09-30
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