Boeing awarded $28.8M for T-45 aircraft avionics modernization, continuing a multi-year program

Contract Overview

Contract Amount: $28,805,157 ($28.8M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2009-09-25

End Date: 2016-09-30

Contract Duration: 2,562 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE T45TS IS IN THE PROCESS OF RETROFITTING T-45A (ANALOG) TO T-45C (DIGITAL) AIRCRAFT. THIS ACQUISITION IS FOR THE PROCUREMENT OF HARDWARE AND SUPPORT ASSOCIATED WITH THE T-45 REQUIRED AVIONICS MODERNIZATION PROGRAM (RAMP) FOR T-45 RETROFIT KITS AND ASSOCIATED ENGINEERING SUPPORT EFFORTS. THE RAMP EFFORT IS BASED UPON THE RETROFIT VALIDATION AND VERIFICATION THAT WAS ORIGINALLY ACCOMPLISHED UNDER CONTRACT N00019-94-C-0058 AWARDED ON 27 JULY 1996 (ECP 00055R4) AND IS A CONTINUATION OF FY05/06/07/08 RAMP EFFORTS ACCOMPLISHED UNDER CONTRACT N00019-05-C-0025.

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $28.8 million to THE BOEING COMPANY for work described as: THE T45TS IS IN THE PROCESS OF RETROFITTING T-45A (ANALOG) TO T-45C (DIGITAL) AIRCRAFT. THIS ACQUISITION IS FOR THE PROCUREMENT OF HARDWARE AND SUPPORT ASSOCIATED WITH THE T-45 REQUIRED AVIONICS MODERNIZATION PROGRAM (RAMP) FOR T-45 RETROFIT KITS AND ASSOCIATED ENGINEERING SUPPO… Key points: 1. The contract focuses on hardware and engineering support for a critical aircraft modernization effort. 2. This acquisition represents a continuation of previous RAMP efforts, indicating program maturity. 3. The firm-fixed-price contract type suggests a defined scope and cost control measures. 4. The duration of the contract (over 7 years) implies a significant, long-term project. 5. The absence of small business set-asides suggests the prime contractor is a large entity. 6. The contract is for aircraft manufacturing support, a key component of defense readiness.

Value Assessment

Rating: good

The total award of $28.8 million for the T-45 RAMP program appears reasonable given the scope of retrofitting avionics on multiple aircraft over a seven-year period. While specific per-unit costs are not detailed, the firm-fixed-price nature of the contract suggests that the government has negotiated a set price for the defined work, which aids in cost predictability. Benchmarking against similar large-scale aircraft modernization programs would provide further insight, but the continuation of this effort under a new contract implies satisfactory performance and value in prior phases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and ensure the government receives the best value. The number of bidders is not specified, but the fact that it was competed openly suggests a healthy level of interest and capability within the market for this type of specialized aircraft modification.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing, which is beneficial for taxpayers by potentially lowering the overall cost of the modernization program.

Public Impact

The primary beneficiaries are the U.S. Navy aviators who will operate modernized T-45 aircraft. The services delivered include essential hardware and engineering support for avionics upgrades. The geographic impact is primarily at naval air stations where T-45 aircraft are based and maintained. Workforce implications include skilled technicians and engineers involved in the retrofit process. Enhanced aircraft reliability and safety are key outcomes of the modernization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen technical challenges arise during the extensive retrofit process.
Dependence on a single large contractor (Boeing) could limit future flexibility or innovation.
Long contract duration may lead to scope creep or changes in requirements over time.

Positive Signals

Continuation of a program suggests prior success and established working relationships.
Firm-fixed-price contract provides cost certainty for the government.
Full and open competition indicates a robust market and potential for competitive pricing.

Sector Analysis

The T-45 RAMP program falls within the broader aerospace and defense sector, specifically focusing on aircraft manufacturing and modification. This sector is characterized by high technological complexity, stringent regulatory requirements, and significant government investment. The market for aircraft modernization is substantial, driven by the need to extend the service life of existing fleets and incorporate new technologies. Comparable spending benchmarks would involve looking at other major military aircraft upgrade programs, which often run into hundreds of millions or billions of dollars.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements specifically for small businesses in the provided data. The prime contractor, The Boeing Company, is a large aerospace firm. This suggests that the primary focus is on the capabilities of the large prime, and any small business involvement would likely be through Boeing's own supply chain management, rather than direct government mandates for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. DCMA is responsible for ensuring contractors meet contractual requirements, including quality, cost, and schedule. Transparency is facilitated through contract awards databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

T-45 Goshawk Training Aircraft Program
Naval Aviation Training Systems
Avionics Modernization Programs
Aircraft Retrofit and Upgrade Contracts

Risk Flags

Long contract duration increases risk of scope creep and requirement changes.
Complexity of analog-to-digital conversion may lead to unforeseen technical challenges.
Dependence on a single large contractor could impact long-term flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.8 million to THE BOEING COMPANY. THE T45TS IS IN THE PROCESS OF RETROFITTING T-45A (ANALOG) TO T-45C (DIGITAL) AIRCRAFT. THIS ACQUISITION IS FOR THE PROCUREMENT OF HARDWARE AND SUPPORT ASSOCIATED WITH THE T-45 REQUIRED AVIONICS MODERNIZATION PROGRAM (RAMP) FOR T-45 RETROFIT KITS AND ASSOCIATED ENGINEERING SUPPORT EFFORTS. THE RAMP EFFORT IS BASED UPON THE RETROFIT VALIDATION AND VERIFICATION THAT WAS ORIGINALLY ACCOMPLISHED UNDER CONTRACT N00019-94-C-0058 AWARDED ON 27 JULY 1996 (ECP 00055R4) AND IS A CONTINUATION OF FY05/06/

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 $28.8 million.

What is the period of performance?

Start: 2009-09-25. End: 2016-09-30.

What is the historical spending trend for the T-45 RAMP program across all contracts?

The provided data indicates this specific contract (N00019-05-C-0025) is a continuation of FY05/06/07/08 RAMP efforts. To understand the full historical spending, one would need to aggregate data from all contracts related to the T-45 RAMP program, including the earlier contract N00019-94-C-0058 mentioned for validation and verification. Analyzing the total obligated amounts and period of performance for all related contracts would reveal the cumulative investment in this modernization effort over time. Without access to a comprehensive contract database search, it's difficult to provide an exact total, but this $28.8 million award represents a significant portion of the ongoing investment.

How does the per-unit cost of this T-45 modernization compare to similar aircraft upgrade programs?

The provided data does not include a specific per-unit cost for the T-45 modernization, nor does it detail the number of aircraft being retrofitted under this $28.8 million contract. To perform a meaningful comparison, we would need to know the total number of aircraft units affected by this award and the specific scope of work per unit. Benchmarking against other military aircraft modernization programs (e.g., fighter jet upgrades, bomber retrofits) would require identifying comparable programs in terms of complexity, technology insertion, and aircraft type. Generally, avionics modernization is a complex and costly process, and per-unit costs can vary widely based on the sophistication of the new systems and the labor involved.

What are the key performance indicators (KPIs) used to measure the success of the T-45 RAMP program?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for the T-45 RAMP program. However, typical KPIs for such an avionics modernization effort would likely include metrics related to aircraft availability, mission readiness rates, system reliability improvements (e.g., Mean Time Between Failures for new avionics), reduction in maintenance man-hours, successful integration of new digital systems, and adherence to schedule and budget. The successful completion of the retrofit validation and verification under the earlier contract suggests that initial performance benchmarks were met. Continued success would be measured by the operational impact of the modernized aircraft.

What is The Boeing Company's track record with T-45 aircraft modifications and similar defense contracts?

The Boeing Company has a significant track record in aerospace manufacturing and defense contracting. They are the prime contractor for this T-45 RAMP program, indicating a level of trust and capability recognized by the Department of Defense. The data explicitly mentions that this acquisition is a continuation of previous RAMP efforts accomplished under contract N00019-05-C-0025, suggesting Boeing has been involved in this specific program for some time. Their broader experience includes the design, production, and sustainment of numerous military aircraft platforms. A deeper dive into their contract performance history, including past performance evaluations and any significant issues on similar large-scale modification programs, would provide a more comprehensive view of their track record.

Are there any identified risks associated with the T-45 analog-to-digital avionics conversion?

Yes, there are inherent risks associated with any complex analog-to-digital avionics conversion, especially on aging aircraft platforms like the T-45. Key risks include technical challenges in integrating new digital systems with legacy components, potential software glitches or compatibility issues, and the need for extensive testing and validation to ensure reliability and safety. Schedule delays are also a common risk in such programs due to unforeseen technical hurdles or supply chain disruptions for specialized components. Furthermore, ensuring the cybersecurity of the new digital systems against evolving threats is a critical and ongoing risk. The mention of 'engineering support efforts' within the contract suggests that managing these technical risks is a significant component of the work.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001908R0072

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $29,825,205

Exercised Options: $28,938,198

Current Obligation: $28,805,157

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline