DoD Awards Boeing $780M for H-47 Extended Range Helicopters, Production Contract Lacks Competition
Contract Overview
Contract Amount: $780,361,826 ($780.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-02-14
End Date: 2028-10-31
Contract Duration: 2,451 days
Daily Burn Rate: $318.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: H-47 EXTENDED RANGE FMS PRODUCTION
Place of Performance
Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078
Plain-Language Summary
Department of Defense obligated $780.4 million to THE BOEING COMPANY for work described as: H-47 EXTENDED RANGE FMS PRODUCTION Key points: 1. Significant contract value of $780.4 million for specialized aircraft production. 2. Sole-source award to The Boeing Company raises concerns about price discovery. 3. Long-term contract (2022-2028) for U.S. Special Operations Command highlights critical defense needs. 4. Aircraft manufacturing sector is highly specialized and often dominated by a few key players.
Value Assessment
Rating: questionable
The contract's firm fixed price structure aims for cost certainty. However, without competition, it's difficult to benchmark pricing against market alternatives or assess if the negotiated price represents the best value for taxpayers.
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 leads to higher costs compared to a competitive bidding process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these specialized helicopters, as there was no market pressure to drive down costs.
Public Impact
Special Operations Command receives advanced helicopter capabilities crucial for national security missions. Taxpayer funds are allocated to a high-value, specialized defense procurement. Potential for increased costs due to the absence of competitive bidding. Long-term commitment to a single contractor for critical aircraft manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value without competitive benchmark
Positive Signals
- Firm fixed price contract
- Long-term delivery schedule
- Specialized defense capability
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically aircraft production. Spending in this area is often characterized by high R&D costs, long production cycles, and significant government oversight due to national security implications. Benchmarks are difficult without competitive data.
Small Business Impact
The awardee is The Boeing Company, a large aerospace manufacturer. There is no indication in the provided data that small businesses were involved in this specific contract, either as prime contractors or significant subcontractors.
Oversight & Accountability
Given the sole-source nature of this award, robust oversight is crucial to ensure the government is receiving fair value and that Boeing is meeting all contractual obligations. The long duration of the contract necessitates continuous monitoring of performance and costs.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on cost justification
- Long-term reliance on a single supplier
- High contract value without clear benchmarks
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 $780.4 million to THE BOEING COMPANY. H-47 EXTENDED RANGE FMS 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 $780.4 million.
What is the period of performance?
Start: 2022-02-14. End: 2028-10-31.
What is the justification for the sole-source award, and were alternative procurement strategies considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Alternative strategies like competitive prototyping or phased procurements might be considered, but the specific rationale for bypassing full and open competition on this H-47 production contract requires detailed review of the contracting officer's determination.
How does the unit cost of the H-47 Extended Range compare to previous or similar helicopter procurements?
Without competitive bidding data, a direct comparison of the unit cost is challenging. Historical data on previous H-47 variants or similar heavy-lift helicopters procured competitively could serve as a rough benchmark. However, the 'Extended Range' designation suggests potential modifications that could influence cost, making a precise comparison difficult without detailed cost breakdowns and market analysis.
What are the specific performance enhancements of the 'Extended Range' variant, and do they justify the potential cost premium?
The 'Extended Range' designation implies modifications to increase operational range, potentially through fuel system upgrades, aerodynamic improvements, or engine enhancements. The justification for any cost premium would depend on the criticality of these range improvements to the Special Operations Command's mission requirements and whether these enhancements offer a significant operational advantage over non-extended range versions.
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: $780,361,826
Exercised Options: $780,361,826
Current Obligation: $780,361,826
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: 2022-02-14
Current End Date: 2028-10-31
Potential End Date: 2028-10-31 00:00:00
Last Modified: 2025-12-18
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