DoD Awards Boeing $17.4M for E-3 AWACS Integration, Facing Limited Competition
Contract Overview
Contract Amount: $17,445,529 ($17.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-06-26
End Date: 2025-11-30
Contract Duration: 1,983 days
Daily Burn Rate: $8.8K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: E-3 AIRBORNE WARNING AND CONTROL SYSTEM INTEGRATION
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $17.4 million to THE BOEING COMPANY for work described as: E-3 AIRBORNE WARNING AND CONTROL SYSTEM INTEGRATION Key points: 1. Significant contract value for specialized defense system integration. 2. Boeing is the sole awardee, indicating potential limited competition. 3. Risk of cost overruns or schedule delays in complex integration projects. 4. Spending falls within the Audio and Video Equipment Manufacturing sector.
Value Assessment
Rating: good
The contract value of $17.4M appears reasonable for a complex integration project of this nature. Benchmarking against similar large-scale defense system integration contracts would provide further context on its competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (System for Award Management), suggesting a limited competition approach. This method may impact price discovery compared to full and open competition, potentially leading to higher costs.
Taxpayer Impact: Taxpayer funds are being used for a critical defense capability. The limited competition aspect warrants scrutiny to ensure value for money.
Public Impact
Enhances critical airborne early warning and control capabilities for the Air Force. Supports national security by maintaining and upgrading a vital defense asset. Potential for follow-on contracts related to E-3 system sustainment and upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 87 / 10
Warning Flags
- Limited competition may result in suboptimal pricing.
- Potential for scope creep in integration projects.
- Long contract duration increases exposure to market volatility.
Positive Signals
- Addresses a critical defense need for the Air Force.
- Awarded to a prime contractor with extensive experience in aerospace.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls under the Audio and Video Equipment Manufacturing sector, specifically related to complex defense systems. Spending in this niche area is often characterized by high R&D costs and specialized production requirements.
Small Business Impact
The data does not indicate any specific subcontracting goals for small businesses on this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of Defense's contracting oversight mechanisms are expected to be applied to this contract. Regular performance reviews and audits will be crucial to ensure compliance and manage risks effectively.
Related Government Programs
- Audio and Video Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition.
- Long contract duration.
- Complexity of integration projects.
- Reliance on a single prime contractor.
Tags
audio-and-video-equipment-manufacturing, department-of-defense, ok, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.4 million to THE BOEING COMPANY. E-3 AIRBORNE WARNING AND CONTROL SYSTEM INTEGRATION
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 $17.4 million.
What is the period of performance?
Start: 2020-06-26. End: 2025-11-30.
What is the specific nature of the 'integration' being performed on the E-3 AWACS system, and how does it enhance its operational capabilities?
The integration likely involves updating or incorporating new technologies, software, or hardware into the existing E-3 Airborne Warning and Control System (AWACS) platform. This could include enhancements to radar systems, communication suites, data processing capabilities, or command and control functions. The goal is to maintain the system's effectiveness against evolving threats and ensure interoperability with other modern military assets, thereby improving situational awareness and response times for the Air Force.
Given the limited competition, what measures are in place to mitigate the risk of inflated pricing or suboptimal performance from The Boeing Company?
While competition was limited, the Firm Fixed Price (FFP) contract structure inherently shifts cost risk to the contractor, incentivizing efficient performance. The Department of Defense likely employs robust contract management, including performance monitoring, milestone reviews, and potentially cost-plus-incentive-fee elements for specific components if applicable. Independent government cost estimates and benchmarking against similar projects also serve as checks against unreasonable pricing.
How does this $17.4 million contract contribute to the overall modernization and sustainment strategy of the E-3 AWACS fleet?
This contract represents a specific investment in the ongoing modernization and sustainment of the E-3 AWACS fleet. It addresses critical integration needs that are essential for maintaining the platform's relevance and operational effectiveness in the current and future threat environment. Such integration efforts are vital components of a broader strategy to extend the service life of the fleet and ensure it continues to meet evolving mission requirements for airborne early warning and control.
Industry Classification
NAICS: Manufacturing › Audio and Video Equipment Manufacturing › Audio and Video Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
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: $21,707,899
Exercised Options: $19,980,093
Current Obligation: $17,445,529
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-06-26
Current End Date: 2025-11-30
Potential End Date: 2025-11-30 00:00:00
Last Modified: 2025-08-19
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