DoD Awards Boeing $78M for Large Aircraft Infrared Countermeasures Phase II
Contract Overview
Contract Amount: $78,254,892 ($78.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-08-16
End Date: 2024-01-03
Contract Duration: 140 days
Daily Burn Rate: $559.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: LARGE AIRCRAFT INFRARED COUNTERMEASURES INDIA 777 PHASE II
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $78.3 million to THE BOEING COMPANY for work described as: LARGE AIRCRAFT INFRARED COUNTERMEASURES INDIA 777 PHASE II Key points: 1. Contract awarded to a single, dominant player in aircraft manufacturing. 2. Significant investment in advanced defense technology for aircraft. 3. Potential for cost overruns given the Cost Plus Incentive Fee structure. 4. Focus on specialized aircraft components suggests a niche but critical sector.
Value Assessment
Rating: fair
The contract's Cost Plus Incentive Fee structure allows for potential cost growth beyond initial estimates. Benchmarking is difficult without specific per-unit data, but the total award is substantial for a specialized system.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited source award. This limits price discovery and potentially increases costs for the government.
Taxpayer Impact: The lack of competition may lead to higher prices, impacting taxpayer investment in defense capabilities.
Public Impact
Enhances survivability of large aircraft against infrared threats. Supports ongoing modernization efforts within the Air Force. Potential for technology transfer and spin-offs in related fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Incentive Fee structure
- Limited transparency on per-unit costs
Positive Signals
- Addresses critical defense need
- Awarded to established prime contractor
- Supports advanced technology development
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on advanced aircraft systems. Spending in this area is driven by national security needs and technological advancements, with significant government investment.
Small Business Impact
The contract was awarded to a large prime contractor, and there is no indication of significant subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The contract is a definitive contract awarded by the Department of the Air Force. Oversight will be crucial to manage costs and ensure performance under the incentive fee structure.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Cost Plus Incentive Fee can lead to cost overruns.
- Lack of detailed performance metrics in award notice.
- Dependency on a single large contractor.
Tags
aircraft-manufacturing, department-of-defense, ok, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $78.3 million to THE BOEING COMPANY. LARGE AIRCRAFT INFRARED COUNTERMEASURES INDIA 777 PHASE II
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 $78.3 million.
What is the period of performance?
Start: 2023-08-16. End: 2024-01-03.
What is the projected cost savings or efficiency gain expected from this Phase II development?
The provided data does not specify projected cost savings or efficiency gains. The Cost Plus Incentive Fee structure aims to incentivize the contractor to control costs, but the specific targets and potential savings are not detailed in this award notice. Further documentation would be needed to assess this.
What are the specific risks associated with the 'limited competition' aspect of this contract?
The primary risk of limited competition is the potential for inflated pricing due to the absence of market pressure. It also reduces the government's ability to explore alternative solutions or innovative approaches that might be offered by other vendors, potentially leading to suboptimal technological outcomes or higher long-term costs.
How will the effectiveness of the infrared countermeasures be measured and validated?
Effectiveness will likely be measured through rigorous testing and evaluation protocols defined in the contract's statement of work. This would involve simulated threat environments and potentially live-fire exercises to validate the system's performance against specified infrared threats, ensuring it meets the Air Force's operational requirements.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $78,254,892
Exercised Options: $78,254,892
Current Obligation: $78,254,892
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $8,114,604
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-08-16
Current End Date: 2024-01-03
Potential End Date: 2024-01-03 00:00:00
Last Modified: 2024-09-03
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