Boeing Awarded $257M for MH-47G Block II Lot 2 Production, Sole-Sourced

Contract Overview

Contract Amount: $257,238,906 ($257.2M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2018-07-13

End Date: 2023-09-30

Contract Duration: 1,905 days

Daily Burn Rate: $135.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LONG LEAD MH-47G BLKII LOT 2 PRODUCTION

Place of Performance

Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $257.2 million to THE BOEING COMPANY for work described as: LONG LEAD MH-47G BLKII LOT 2 PRODUCTION Key points: 1. Significant investment in specialized aircraft manufacturing. 2. Sole-source award to Boeing raises competition concerns. 3. Long contract duration (1905 days) may impact price flexibility. 4. Defense sector spending on rotorcraft is substantial.

Value Assessment

Rating: questionable

The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed carefully. Benchmarking against similar sole-source rotorcraft contracts is difficult due to limited public data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this significant award means taxpayers may not be receiving the best possible price for these aircraft.

Public Impact

Ensures continued availability of specialized MH-47G aircraft for critical missions. Supports jobs within the aerospace manufacturing sector, specifically at Boeing. Potential for cost overruns due to the sole-source and cost-plus nature of the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Long duration

Positive Signals

Essential defense capability
Supports established prime contractor

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically for rotorcraft. Spending in this area is driven by national security requirements and technological advancements.

Small Business Impact

The award went to a large prime contractor, The Boeing Company. There is no indication of subcontracting opportunities for small businesses within this specific award notice.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) is responsible for oversight. The cost-plus fixed fee structure requires diligent monitoring to ensure costs are reasonable and fixed fees are justified.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency on pricing
Long contract duration may reduce flexibility

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $257.2 million to THE BOEING COMPANY. LONG LEAD MH-47G BLKII LOT 2 PRODUCTION

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 $257.2 million.

What is the period of performance?

Start: 2018-07-13. End: 2023-09-30.

What is the estimated total cost per MH-47G aircraft under this contract, and how does it compare to previous lots or similar aircraft?

The total award is $257,238,906.39 for an unspecified number of aircraft over 1905 days. Without knowing the quantity, a precise per-unit cost cannot be calculated. However, given the sole-source and cost-plus nature, it is crucial to benchmark against historical data and comparable sole-source procurements to assess value for money.

What are the specific justifications for awarding this contract on a sole-source basis, and were alternative sources considered?

The data provided does not include the specific justifications for the sole-source award. Typically, such justifications might include unique capabilities, urgent needs, or lack of viable alternative sources. A thorough review of the contract file and justification documents would be necessary to understand the rationale and assess if competition was truly not feasible.

How effectively is the Cost Plus Fixed Fee structure being managed to control costs and ensure efficient delivery of the MH-47G aircraft?

Effective management of a Cost Plus Fixed Fee contract relies heavily on robust oversight by the contracting agency (DCMA in this case). This includes detailed auditing of incurred costs, negotiation of fair fixed fees, and monitoring contractor performance to prevent cost overruns and ensure the government receives good value. The long duration suggests ongoing oversight is critical.

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: $257,238,906

Exercised Options: $257,238,906

Current Obligation: $257,238,906

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