Boeing awarded $184M for E-6A logistics support, a sole-source contract for critical airborne command post services

Contract Overview

Contract Amount: $215,447,983 ($215.4M)

Contractor: Boeing Company, the

Awarding Agency: Department of Defense

Start Date: 2000-12-28

End Date: 2010-09-30

Contract Duration: 3,563 days

Daily Burn Rate: $60.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200106!000277!1700!AC514 !NAVAL AIR SYSTEMS COMMAND !N0001901C0066 !A!N!*!N! !20001228!20050930!184173441!184173441!009256819!N!THE BOEING COMPANY !20403 68TH AVE S !KENT !WA!98032!55025!109!40!OKLAHOMA CITY AIR FO!OKLAHOMA !OKLAHOMA !+000018882734!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !2GHY!E-6A (TACAMO) !541330!*!*!3! ! ! !*!*!*!B!*!*!A! !A !N!J!2!001!B! !C!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001!

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $215.4 million to BOEING COMPANY, THE for work described as: 200106!000277!1700!AC514 !NAVAL AIR SYSTEMS COMMAND !N0001901C0066 !A!N!*!N! !20001228!20050930!184173441!184173441!009256819!N!THE BOEING COMPANY !20403 68TH AVE S !KENT !WA!98032!55025!109!40!OKLAHOMA CITY AIR FO!OKLAH… Key points: 1. Contract awarded for essential logistics support for the E-6A (TACAMO) aircraft, crucial for airborne command and control. 2. Sole-source award indicates a lack of readily available alternatives or specialized capabilities held by the incumbent. 3. The contract duration spans over 9 years, suggesting a long-term need for these services. 4. Firm Fixed Price contract type aims to provide cost certainty for the government. 5. The awardee, The Boeing Company, is the original equipment manufacturer, likely possessing unique knowledge of the system. 6. The contract value of $184M over its term represents a significant investment in maintaining a strategic asset.

Value Assessment

Rating: fair

The contract value of $184,173,441 over a period of nearly 10 years for logistics support services for the E-6A aircraft appears to be within a reasonable range given the specialized nature of the platform. However, without detailed breakdowns of labor hours, parts, and overhead, a precise value-for-money assessment is challenging. Benchmarking against similar sole-source contracts for legacy aircraft sustainment would be necessary for a more definitive comparison. The firm-fixed-price structure provides cost predictability, but the absence of competition limits the government's ability to leverage market forces for potential cost savings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one contractor, The Boeing Company, was solicited. This approach is typically justified when a product or service is unique and available only from a single source, or when there is a compelling reason for the original manufacturer to perform the work due to specialized knowledge, proprietary data, or existing infrastructure. The lack of competition means that the government did not benefit from a competitive bidding process, which could potentially lead to higher prices than if multiple vendors had vied for the contract.

Taxpayer Impact: For taxpayers, a sole-source award means that the government may not be achieving the lowest possible price. While the services are critical, the absence of competition removes a key mechanism for driving down costs through market dynamics.

Public Impact

The primary beneficiaries are the U.S. Navy and Air Force, who rely on the E-6A Mercury aircraft for strategic airborne command, control, and communications. Services delivered include logistics support, ensuring the operational readiness and sustainment of a critical national defense asset. The geographic impact is primarily centered around the operational bases and maintenance facilities for the E-6A fleet, likely including Tinker Air Force Base, Oklahoma. Workforce implications include the continued employment of specialized personnel at Boeing and potentially at government depots involved in aircraft maintenance and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Long contract duration could mask inefficiencies if not closely monitored.
Reliance on a single contractor for critical sustainment raises concerns about vendor lock-in.
Lack of transparency in sole-source justifications can obscure true necessity.

Positive Signals

Award to the original equipment manufacturer (Boeing) ensures specialized knowledge and system integration.
Firm-fixed-price contract provides budget certainty for the government.
Contract supports a critical national defense asset, ensuring operational readiness.
Long-term nature of the contract suggests a stable and predictable support environment.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft sustainment and logistics support. The E-6A Mercury is a unique platform, derived from the Boeing 707, used for airborne command post and communications missions. The market for such specialized, legacy aircraft support is often limited, with the original equipment manufacturer typically being the sole or primary provider due to proprietary knowledge, technical data, and established support infrastructure. Comparable spending benchmarks would likely involve sustainment contracts for other strategic airlift or specialized mission aircraft, which are often sole-sourced due to their unique operational requirements and limited fleet sizes.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Given the sole-source nature and the specialized requirements for supporting a complex military aircraft like the E-6A, it is unlikely that significant subcontracting opportunities for small businesses would be mandated or readily available outside of Boeing's established supply chain. The primary focus is on Boeing's direct support capabilities. Any small business involvement would likely be through Boeing's existing supplier relationships, rather than through direct set-aside provisions within this specific contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Naval Air Systems Command (NAVAIR) and the Defense Contract Management Agency (DCMA). These entities are responsible for ensuring contract compliance, monitoring performance, and verifying that the contractor is meeting the terms and conditions of the agreement. Given the sole-source nature, oversight would focus heavily on performance metrics, cost reasonableness (within the fixed-price structure), and adherence to delivery schedules. Transparency is generally limited in sole-source awards, but contract modifications and performance reports would be subject to internal government review and potentially audits by the Government Accountability Office (GAO) or the Department of Defense Inspector General if specific con

Related Government Programs

E-6B Mercury Aircraft Program
Airborne Strategic Communications
Fleet Readiness Support
Aerospace Logistics Services
DoD Aircraft Sustainment

Risk Flags

Sole-source award
Lack of competition
Critical national defense asset sustainment
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $215.4 million to BOEING COMPANY, THE. 200106!000277!1700!AC514 !NAVAL AIR SYSTEMS COMMAND !N0001901C0066 !A!N!*!N! !20001228!20050930!184173441!184173441!009256819!N!THE BOEING COMPANY !20403 68TH AVE S !KENT !WA!98032!55025!109!40!OKLAHOMA CITY AIR FO!OKLAHOMA !OKLAHOMA !+000018882734!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !2GHY!E-6A (TACAMO) !541330!*!*!3! ! ! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is BOEING COMPANY, THE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $215.4 million.

What is the period of performance?

Start: 2000-12-28. End: 2010-09-30.

What is the track record of The Boeing Company in providing logistics support for the E-6A (TACAMO) program?

The Boeing Company has a long-standing relationship with the E-6A TACAMO program, as they are the original equipment manufacturer (OEM) of the aircraft. This deep historical involvement implies extensive knowledge of the aircraft's systems, maintenance requirements, and operational nuances. Their track record would likely include numerous previous contracts for sustainment, modifications, and support services related to the E-6A fleet. While specific performance metrics from past contracts are not detailed here, the continued sole-source awards suggest a level of satisfaction with their ability to meet the critical support needs for this unique and vital national defense asset. The longevity of their involvement indicates a sustained capability to provide the necessary technical expertise and resources.

How does the awarded value compare to similar sole-source contracts for legacy aircraft sustainment?

Comparing the $184 million awarded to Boeing for E-6A logistics support over approximately 9.5 years requires careful consideration of several factors. Sole-source contracts for legacy aircraft sustainment are inherently difficult to benchmark due to the unique nature of each platform, the specific services required (e.g., depot maintenance, component repair, engineering support, supply chain management), and the limited number of potential providers. Generally, such contracts tend to be substantial, reflecting the complexity and specialized knowledge involved. Without access to detailed cost breakdowns and specific service level agreements for comparable aircraft (e.g., other strategic command and control platforms or specialized military transports), it's challenging to definitively state if this contract represents superior or inferior value. However, the firm-fixed-price structure provides a degree of cost control for the government, assuming the scope of work is well-defined.

What are the primary risks associated with this sole-source contract for the E-6A logistics support?

The primary risk associated with this sole-source contract is the lack of competition, which can lead to reduced price pressure and potentially higher costs for the government over the contract's lifespan. Contractor lock-in is another significant risk; the government becomes dependent on The Boeing Company for critical sustainment, making it difficult and costly to switch providers even if performance or pricing becomes unsatisfactory. There's also a risk of complacency from the contractor, as the absence of competitive threats might reduce the incentive to innovate or optimize service delivery. Furthermore, if the contract scope is not meticulously managed, there's a risk of scope creep or unpriced work being added, increasing the overall cost. Finally, reliance on a single entity for such a critical national asset introduces vulnerability should Boeing face significant financial, operational, or supply chain disruptions.

How effective is the E-6A (TACAMO) platform in fulfilling its mission, and how does this contract contribute to that effectiveness?

The E-6A/B Mercury (TACAMO - Take Charge and Move Out) platform is a highly specialized and critical component of the U.S. strategic nuclear triad, serving as a survivable airborne command post and communications relay for U.S. nuclear forces. Its primary mission is to provide a secure and reliable communication link between the National Command Authority and submerged ballistic missile submarines, as well as other strategic assets. This contract for logistics support is directly tied to the platform's effectiveness. By ensuring the continued airworthiness, operational readiness, and maintainability of the E-6A fleet through comprehensive logistics services, this contract directly enables the aircraft to perform its vital, albeit infrequent, mission. Without robust logistics support, the platform's reliability and availability would degrade, compromising its strategic deterrence role.

What are the historical spending patterns for E-6A logistics support, and how does this award fit within that trend?

Historical spending data for E-6A logistics support, particularly from The Boeing Company, would likely show consistent, significant investment over the aircraft's operational life, which began in the late 1980s. As a unique and critical platform, the E-6A requires specialized maintenance and support that is inherently costly. Awards for sustainment, upgrades, and operational support have likely been substantial and often awarded through sole-source or limited-competition vehicles due to the OEM's unique position. This $184 million award, spanning nearly a decade, appears consistent with the long-term, high-value nature of supporting such a strategic asset. It reflects an ongoing commitment to maintaining the platform's readiness, suggesting that historical spending trends have likely mirrored this pattern of significant, sustained investment in the E-6A's operational capability.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: THE Boeing Company

Address: 20403 68TH AVE S, KENT, WA, 98032

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline