Boeing Awarded $26.7M for AWACS Integration & Test Support (AITS) Amidst Limited Competition
Contract Overview
Contract Amount: $26,684,028 ($26.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2017-05-26
End Date: 2017-11-30
Contract Duration: 188 days
Daily Burn Rate: $141.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF AWACS INTEGRATION&TEST SUPPORT (AITS)
Place of Performance
Location: TUKWILA, KING County, WASHINGTON, 98108
Plain-Language Summary
Department of Defense obligated $26.7 million to THE BOEING COMPANY for work described as: IGF::OT::IGF AWACS INTEGRATION&TEST SUPPORT (AITS) Key points: 1. Significant contract value of $26.7 million for specialized aircraft support. 2. Sole-source award to Boeing highlights potential lack of competition. 3. Risk of higher costs due to limited competition and cost-plus contract type. 4. Spending falls within the Defense sector, specifically Aircraft Manufacturing.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without a competitive benchmark, assessing pricing fairness is difficult, but the lack of competition raises concerns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited competition scenario. This limits price discovery and potentially increases costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these integration and test support services.
Public Impact
Supports critical AWACS aircraft, ensuring operational readiness. Contract awarded to a single, established defense contractor. Potential for cost increases due to limited competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost-plus contract type
- Lack of detailed pricing information
Positive Signals
- Supports critical defense asset (AWACS)
- Experienced contractor
Sector Analysis
This contract falls under the Defense sector, specifically Aircraft Manufacturing. Spending in this area is often characterized by high technical complexity and long procurement cycles, with significant investment in R&D and specialized manufacturing capabilities.
Small Business Impact
The data indicates this contract was awarded to The Boeing Company, a large prime contractor. There is no information provided to suggest any subcontracting opportunities for small businesses on this specific award.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency. Oversight is crucial for cost-plus contracts to ensure costs are reasonable and allocable, and that the fixed fee is justified.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition may lead to higher prices.
- Cost-plus contract type increases cost overrun risk.
- Lack of transparency in pricing justification.
- Potential for contractor to incur costs beyond initial estimates.
Tags
aircraft-manufacturing, department-of-defense, wa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.7 million to THE BOEING COMPANY. IGF::OT::IGF AWACS INTEGRATION&TEST SUPPORT (AITS)
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $26.7 million.
What is the period of performance?
Start: 2017-05-26. End: 2017-11-30.
What specific factors justified the limited competition for this AWACS integration and test support contract?
The justification for limited competition likely stems from the highly specialized nature of AWACS integration and testing, requiring unique technical expertise, proprietary knowledge, or existing infrastructure that only Boeing possesses. This could be due to the complexity of the platform, specific system requirements, or the need for continuity with previous development phases.
What are the primary risks associated with a Cost Plus Fixed Fee contract in this context?
The primary risks with a Cost Plus Fixed Fee (CPFF) contract include potential cost overruns if the contractor's costs exceed estimates, as the government bears the majority of the cost risk. The fixed fee provides an incentive for the contractor to control costs, but if oversight is weak, the government may end up paying inflated prices. There's also a risk of scope creep without adequate controls.
How does this contract contribute to the overall effectiveness and readiness of the AWACS fleet?
This contract is crucial for maintaining and enhancing the operational effectiveness and readiness of the AWACS fleet. Integration and test support ensures that new capabilities are properly incorporated, existing systems function reliably, and any issues are identified and resolved promptly. This directly impacts the platform's ability to perform its critical surveillance and command-and-control missions.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 7755 E MARGINAL WAY S, SEATTLE, WA, 98108
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: $27,755,000
Exercised Options: $27,754,998
Current Obligation: $26,684,028
Subaward Activity
Number of Subawards: 20
Total Subaward Amount: $14,582,480
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F1962801D0016
IDV Type: IDC
Timeline
Start Date: 2017-05-26
Current End Date: 2017-11-30
Potential End Date: 2019-11-30 00:00:00
Last Modified: 2025-03-25
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