DoD Awards Boeing $59.2M for B-52 AEHF P3 Study, Raising Oversight Concerns
Contract Overview
Contract Amount: $59,228,048 ($59.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-05-12
End Date: 2023-12-21
Contract Duration: 1,318 days
Daily Burn Rate: $44.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: B-52 AEHF P3 STUDY
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $59.2 million to THE BOEING COMPANY for work described as: B-52 AEHF P3 STUDY Key points: 1. Significant contract value of $59.2 million for a critical aircraft study. 2. Sole-source award to Boeing limits competitive pricing and innovation. 3. Potential for cost overruns due to Cost Plus Fixed Fee contract type. 4. Focus on aircraft manufacturing sector, vital for national defense.
Value Assessment
Rating: questionable
The $59.2 million award for the B-52 AEHF P3 Study appears high given the nature of a study contract. Benchmarking against similar aircraft modification or study contracts is difficult without more detailed scope, but the cost-plus structure warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. The lack of competition likely prevented price discovery and potentially led to a higher overall cost for the government.
Taxpayer Impact: The absence of competition for a nearly $60 million contract means taxpayers may have paid more than necessary, as market forces were not leveraged to secure the best possible price.
Public Impact
Impacts modernization efforts for the B-52 bomber fleet. Affects the strategic capabilities of the U.S. Air Force. Potential implications for future defense spending on aircraft upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Supports critical defense platform (B-52)
- Awarded to established defense contractor
Sector Analysis
This contract falls within the aircraft manufacturing sector, specifically supporting the U.S. Air Force's strategic bomber fleet. Spending in this area is crucial for maintaining national defense capabilities, but often involves high-value, complex contracts.
Small Business Impact
The contract was awarded directly to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data, suggesting limited direct small business involvement.
Oversight & Accountability
The sole-source nature of this contract and its cost-plus fixed fee structure necessitate robust oversight to ensure cost control and prevent potential overruns. The Air Force must closely monitor expenditures and deliverables.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competition
- Cost-plus contract type increases cost risk
- Potential for contractor inefficiency
- Limited transparency on study objectives and value
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 $59.2 million to THE BOEING COMPANY. B-52 AEHF P3 STUDY
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 $59.2 million.
What is the period of performance?
Start: 2020-05-12. End: 2023-12-21.
What specific technical objectives does the B-52 AEHF P3 STUDY aim to achieve, and how do these justify the $59.2 million cost?
The provided data does not detail the specific technical objectives of the B-52 AEHF P3 STUDY. Understanding the scope, complexity, and expected outcomes (e.g., feasibility analysis, design concepts, risk assessment) is crucial for evaluating whether the $59.2 million price tag represents fair value. Without this information, a definitive assessment of value for money is challenging.
What are the primary risks associated with a sole-source, cost-plus fixed fee contract for an aircraft study of this magnitude?
The primary risks include potential cost overruns, as the contractor is incentivized to incur costs to achieve the fixed fee. The lack of competition means the government may not have secured the most innovative or cost-effective solution. Furthermore, without competitive pressure, there's a risk of reduced contractor diligence and potential for scope creep if not tightly managed.
How will the effectiveness of this study be measured, and what are the key performance indicators for The Boeing Company?
Effectiveness measurement for a study contract typically relies on the timely delivery of defined reports, analyses, and recommendations that meet the technical requirements outlined in the contract statement of work. Key performance indicators would likely include adherence to schedule, quality of deliverables, and the study's ability to inform future decisions regarding the B-52's AEHF capabilities. Specific KPIs are not detailed in the provided data.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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: $59,780,837
Exercised Options: $59,780,837
Current Obligation: $59,228,048
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,751,148
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: 2020-05-12
Current End Date: 2023-12-21
Potential End Date: 2023-12-21 00:00:00
Last Modified: 2023-09-29
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