DoD Awards Boeing $180M for MH-47G Black Hawk Helicopter Production
Contract Overview
Contract Amount: $180,130,998 ($180.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-06-28
End Date: 2023-02-28
Contract Duration: 1,706 days
Daily Burn Rate: $105.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MH-47G BLKII PRODUCTION +4 UCA
Place of Performance
Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078
Plain-Language Summary
Department of Defense obligated $180.1 million to THE BOEING COMPANY for work described as: MH-47G BLKII PRODUCTION +4 UCA Key points: 1. Significant investment in specialized aircraft production for Special Operations Command. 2. Sole-source award to Boeing raises questions about competition and potential cost savings. 3. Long-term contract duration (2018-2023) suggests ongoing program needs. 4. Aircraft manufacturing sector is critical for defense capabilities.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar specialized aircraft production contracts is difficult due to the unique nature of the MH-47G.
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. This limits price discovery and potentially increases costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this significant award may result in higher costs for taxpayers than if multiple vendors had vied for the contract.
Public Impact
Ensures continued availability of critical MH-47G helicopters for U.S. Special Operations Command missions. Supports jobs and capabilities within the U.S. aerospace and defense manufacturing sector. Potential for cost efficiencies through long-term production planning with a single supplier.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Ensures critical asset availability
- Supports established supplier relationship
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, a key area for national security. Spending benchmarks for specialized military aircraft production are highly variable and depend on customization and quantity.
Small Business Impact
The award went to a large prime contractor, The Boeing Company. There is no direct indication of small business subcontracting in the provided data, which could be an area for oversight.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and value for taxpayer dollars. Oversight should focus on cost control and performance metrics throughout the contract's life.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Lack of transparency on small business participation.
- Long contract duration may not reflect current market conditions.
Tags
aircraft-manufacturing, department-of-defense, pa, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $180.1 million to THE BOEING COMPANY. MH-47G BLKII PRODUCTION +4 UCA
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $180.1 million.
What is the period of performance?
Start: 2018-06-28. End: 2023-02-28.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For this contract, the justification would likely stem from unique capabilities or existing production lines for the MH-47G. The government should have conducted a price analysis based on historical data, cost breakdowns, and market research to ensure the pricing was fair and reasonable, despite the lack of direct competition.
What are the potential risks associated with a Cost Plus Fixed Fee contract for specialized aircraft production, and how are they mitigated?
CPFF contracts carry risks of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. For specialized aircraft, risks include unforeseen technical challenges, material cost fluctuations, and schedule delays. Mitigation strategies involve robust government oversight of costs, detailed performance metrics, clear contract terms, and potentially incentive clauses to encourage efficiency and timely delivery.
How does the continued production of the MH-47G contribute to the overall effectiveness of U.S. Special Operations Command, and are there alternative platforms being considered?
The MH-47G is a critical heavy-lift, long-range helicopter integral to SOCOM's mission set, enabling special operations forces insertion, extraction, and resupply in complex environments. Its continued production ensures the availability of this specialized capability. While this contract focuses on production, SOCOM likely engages in continuous platform assessment and future capability planning, which may include exploring next-generation aircraft or upgrades.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: ROUTE 291 & STEWART AVE, RIDLEY PARK, PA, 19078
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: $180,130,998
Exercised Options: $180,130,998
Current Obligation: $180,130,998
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9121516G0001
IDV Type: BOA
Timeline
Start Date: 2018-06-28
Current End Date: 2023-02-28
Potential End Date: 2023-02-28 00:00:00
Last Modified: 2023-09-29
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)