DoD Awards Boeing $436M for RAMP Phase 2, Sole-Source Contract for Air Transportation Support
Contract Overview
Contract Amount: $436,462,346 ($436.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-12-17
End Date: 2028-06-30
Contract Duration: 2,387 days
Daily Burn Rate: $182.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RAMP PHASE 2 PROCUREMENT AND INSTALLATION AND CHECKOUT
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $436.5 million to THE BOEING COMPANY for work described as: RAMP PHASE 2 PROCUREMENT AND INSTALLATION AND CHECKOUT Key points: 1. Significant contract value of $436.46 million awarded to a single large business. 2. Sole-source award raises questions about competition and potential price discovery. 3. Long contract duration (2021-2028) suggests a complex, ongoing need. 4. Focus on air transportation support indicates a critical operational requirement for the Air Force.
Value Assessment
Rating: questionable
The contract's value of $436.46 million is substantial. Without comparable contracts or detailed cost breakdowns, assessing its value relative to similar procurements is difficult. The firm fixed-price structure offers some cost certainty, but the lack of competition is a primary concern.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and may result in a higher cost to taxpayers than if multiple vendors had competed. The justification for the sole-source award is not provided.
Taxpayer Impact: The sole-source nature of this large contract raises concerns about potential overspending and the efficient use of taxpayer funds.
Public Impact
Impacts air transportation readiness and logistics for the Air Force. Potential for higher costs due to lack of competitive bidding. Long-term commitment to a single vendor for critical support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
- Long contract duration
Positive Signals
- Firm fixed-price contract type
- Clear statement of work (implied by RAMP Phase 2)
Sector Analysis
This contract falls under Other Support Activities for Air Transportation, a sector critical for military logistics and operations. Spending benchmarks for this specific niche are hard to ascertain without more detail, but large sole-source contracts in defense can often be less cost-effective.
Small Business Impact
The contract was awarded to The Boeing Company, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting limited direct benefit to the small business sector.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure the government is receiving fair value. Accountability for cost and performance will be crucial given the extended duration and significant funding.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for inflated costs due to lack of competitive bidding.
- Long contract duration may obscure performance issues or cost overruns.
- Lack of transparency regarding the justification for sole-source procurement.
- No clear indication of small business participation.
Tags
other-support-activities-for-air-transpo, department-of-defense, ok, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $436.5 million to THE BOEING COMPANY. RAMP PHASE 2 PROCUREMENT AND INSTALLATION AND CHECKOUT
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 $436.5 million.
What is the period of performance?
Start: 2021-12-17. End: 2028-06-30.
What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award is critical for understanding the necessity of bypassing competition. Agencies must document why only one source can meet the requirement. Without this documentation, it's difficult to assess if the price negotiated reflects market value or if taxpayers are bearing an unnecessary premium due to the lack of competitive pressure.
How does the cost of this sole-source contract compare to similar air transportation support services procured competitively?
Comparing the cost of this $436 million sole-source contract to similar services procured competitively is essential for evaluating value. If comparable services are significantly cheaper under competitive contracts, it highlights a potential inefficiency and overpayment in this instance. This comparison would inform future procurement strategies to maximize cost savings.
What performance metrics and oversight mechanisms are in place to ensure the effectiveness and timely completion of RAMP Phase 2 by The Boeing Company?
Given the contract's substantial value and long duration, robust performance metrics and oversight are paramount. Clear deliverables, key performance indicators (KPIs), and regular progress reviews are necessary to ensure The Boeing Company meets its obligations effectively and on schedule. Strong accountability mechanisms will safeguard taxpayer investment.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
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: 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: $436,462,346
Exercised Options: $436,462,346
Current Obligation: $436,462,346
Subaward Activity
Number of Subawards: 189
Total Subaward Amount: $64,286,624
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-12-17
Current End Date: 2028-06-30
Potential End Date: 2028-06-30 00:00:00
Last Modified: 2025-12-18
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