DoD Awards Boeing $297M for MH-47G Block II Lot 3 Production, Extending Aircraft Manufacturing Through 2025
Contract Overview
Contract Amount: $297,044,706 ($297.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-06-14
End Date: 2025-12-31
Contract Duration: 2,392 days
Daily Burn Rate: $124.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LONG LEAD MH-47G BLKII LOT 3 PRODUCTION
Place of Performance
Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078
Plain-Language Summary
Department of Defense obligated $297.0 million to THE BOEING COMPANY for work described as: LONG LEAD MH-47G BLKII LOT 3 PRODUCTION Key points: 1. Significant contract value for specialized aircraft production. 2. Sole-source award to Boeing raises questions about competition. 3. Long lead time and firm fixed price contract mitigate some risk. 4. Focus on Special Operations Command highlights critical defense needs.
Value Assessment
Rating: good
The $297M award for MH-47G Block II Lot 3 production appears reasonable given the specialized nature of the aircraft and the sole-source provider. Benchmarking against similar complex military aircraft production contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source to The Boeing Company, indicating a lack of competitive bidding. While this may be justified by unique capabilities or existing platform integration, it limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not benefit from the cost savings typically achieved through competitive procurement processes.
Public Impact
Ensures continued availability of critical MH-47G aircraft for U.S. Special Operations Command. Supports advanced helicopter manufacturing capabilities within the U.S. Potential for long-term reliance on a single supplier for specialized aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Long contract duration increases exposure to market fluctuations.
- Dependence on a single manufacturer for critical assets.
Positive Signals
- Addresses critical national security needs for Special Operations.
- Firm fixed price contract provides cost certainty.
- Long lead time allows for planned production and delivery.
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing. Spending benchmarks for similar large-scale military aircraft production contracts are typically in the hundreds of millions to billions of dollars, making this award significant but within expected ranges for such specialized equipment.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, which is common for major defense manufacturing contracts.
Oversight & Accountability
The U.S. Special Operations Command is responsible for overseeing this contract. The firm fixed price and long duration necessitate robust oversight to ensure performance, quality, and adherence to schedule, particularly given the sole-source nature.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Sole-source award
- Long contract duration
- Potential for cost creep over time
- Dependence on a single supplier
- Lack of small business participation noted
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 $297.0 million to THE BOEING COMPANY. LONG LEAD MH-47G BLKII LOT 3 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 (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $297.0 million.
What is the period of performance?
Start: 2019-06-14. End: 2025-12-31.
What is the justification for the sole-source award to Boeing for the MH-47G Block II Lot 3 production, and has a market research report been conducted to confirm no other sources can meet the require
The justification for a sole-source award typically stems from unique technical requirements, existing platform integration, or a lack of viable alternative suppliers. A thorough market research report is crucial to validate these claims and ensure that competition was genuinely not feasible. Without this documentation, the sole-source decision warrants closer scrutiny to confirm it serves the best interest of the government and taxpayers.
How does the unit cost of the MH-47G Block II compare to previous lots or similar aircraft, and what measures are in place to control costs over the contract's extended duration?
Comparing unit costs across different production lots and against similar aircraft is essential for assessing value. Given the firm fixed price structure, cost control is primarily managed through the initial negotiation and contract terms. However, ongoing oversight is vital to monitor production efficiency and address any potential cost overruns or deviations from the agreed-upon price, especially considering the long lead time and potential for supply chain volatility.
What are the specific performance metrics and delivery milestones for this contract, and what are the penalties or remedies for non-performance or delays?
Detailed performance metrics and delivery milestones are critical for ensuring the successful production and delivery of the MH-47G aircraft. The contract likely includes clauses outlining remedies for non-performance or delays, which could range from financial penalties to termination. Robust government oversight is necessary to track progress against these milestones and enforce contractual obligations, ensuring the Special Operations Command receives the critical assets on time and to specification.
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: FIRM FIXED PRICE (J)
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: $382,358,632
Exercised Options: $297,044,706
Current Obligation: $297,044,706
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $93,815
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: 2019-06-14
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-04-16
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