Boeing awarded $53M contract for P-3C Orion aircraft sustainment services at NAS Jacksonville

Contract Overview

Contract Amount: $52,976,563 ($53.0M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2012-10-12

End Date: 2018-09-30

Contract Duration: 2,179 days

Daily Burn Rate: $24.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NAS JACKSONVILLE P-3C COMS

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $53.0 million to THE BOEING COMPANY for work described as: NAS JACKSONVILLE P-3C COMS Key points: 1. Contract awarded to a single, large defense contractor, indicating a focus on specialized capabilities. 2. The contract duration of nearly 6 years suggests a long-term need for these sustainment services. 3. Fixed-price contract type may offer cost certainty for the government, but could limit flexibility. 4. The award was made under full and open competition, suggesting a robust bidding process. 5. The specific nature of P-3C Orion sustainment points to a niche but critical defense requirement.

Value Assessment

Rating: fair

The contract value of $52.98 million for engineering services related to P-3C Orion sustainment over approximately 6 years appears to be within a reasonable range for specialized aerospace support. Benchmarking against similar long-term sustainment contracts for legacy aircraft is challenging due to the unique nature of the P-3C platform and its specific operational requirements. However, the fixed-price nature of the award suggests an attempt to control costs, though the final expenditure could vary based on the scope of work performed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of 7 bids suggests a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The specific details of the competition, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the bidding process.

Taxpayer Impact: The full and open competition process for this contract is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down costs and ensuring the government receives competitive pricing for essential P-3C Orion sustainment services.

Public Impact

The primary beneficiaries are the U.S. Navy personnel operating and maintaining the P-3C Orion aircraft, ensuring mission readiness. Services delivered include engineering support critical for the continued operational effectiveness of a key maritime patrol and reconnaissance aircraft. The geographic impact is centered around NAS Jacksonville, Florida, a major hub for naval aviation operations. Workforce implications include the retention of specialized engineering and technical jobs within the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen technical challenges in sustaining an aging aircraft platform.
Dependence on a single contractor for critical sustainment services could create long-term risks if the contractor's performance or financial stability declines.
The P-3C Orion is a legacy platform, and the long-term viability of its sustainment may be subject to evolving defense strategies and potential replacement aircraft.

Positive Signals

The contract was awarded through full and open competition, suggesting a competitive pricing environment.
The fixed-price contract type provides a degree of cost certainty for the government.
The award to a major defense contractor like Boeing indicates access to specialized expertise and established supply chains for P-3C Orion sustainment.

Sector Analysis

The aerospace and defense sector is characterized by long-term, high-value contracts for aircraft manufacturing, maintenance, and sustainment. The P-3C Orion is a long-serving maritime patrol aircraft, and contracts for its continued support fall within the specialized engineering services segment of this industry. Spending in this area is driven by national security requirements and the need to maintain the operational readiness of aging but critical defense assets. Comparable spending benchmarks would typically involve other sustainment contracts for legacy military aircraft platforms.

Small Business Impact

This contract was awarded to The Boeing Company, a large prime contractor, and there is no indication of a small business set-aside. While the prime contract may not directly benefit small businesses, large defense contracts often involve subcontracting opportunities. The extent to which Boeing will utilize small business subcontractors for specialized services or components will determine the indirect impact on the small business ecosystem within the aerospace and defense sector.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the contract's terms and conditions, including performance standards and payment schedules. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

P-3 Orion Aircraft Sustainment
Naval Aviation Maintenance Programs
Defense Engineering Services
Aerospace Component Support
Maritime Patrol Aircraft Operations

Risk Flags

Legacy platform sustainment
Potential for cost overruns
Contractor performance risk
Long-term platform obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.0 million to THE BOEING COMPANY. NAS JACKSONVILLE P-3C COMS

Who is the contractor on this award?

The obligated recipient is THE BOEING COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $53.0 million.

What is the period of performance?

Start: 2012-10-12. End: 2018-09-30.

What is the track record of The Boeing Company in providing sustainment services for legacy military aircraft like the P-3C Orion?

The Boeing Company has a long and extensive history of providing sustainment, maintenance, and upgrade services for a wide range of military aircraft, including the P-3 Orion platform. Their experience spans decades, encompassing various configurations and operational roles of the P-3. This includes providing logistics support, engineering services, depot-level maintenance, and component repair. Boeing's established infrastructure, technical expertise, and supply chain management capabilities are critical for supporting aging aircraft fleets. Their track record generally indicates a capacity to handle complex sustainment requirements, though specific contract performance can vary based on scope, duration, and government oversight.

How does the awarded value of $52.98 million compare to similar P-3C Orion sustainment contracts or other legacy aircraft sustainment contracts?

Direct comparison of the $52.98 million award for P-3C Orion sustainment services is challenging without access to detailed scope of work and duration specifics of other contracts. However, sustainment contracts for legacy aircraft platforms can range significantly, from tens of millions to hundreds of millions of dollars over several years, depending on the level of support (e.g., depot maintenance, component overhaul, engineering services, spare parts). Given the P-3C's age and the specialized nature of its maritime patrol role, this contract value appears to be within a plausible range for comprehensive engineering and sustainment support over its nearly 6-year duration. Benchmarking against contracts for similarly aged platforms like the C-130 or older fighter jets would provide a broader context, but the unique mission set of the P-3 influences its specific support costs.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include the potential for cost growth under the fixed-price contract if unforeseen technical issues arise with the aging P-3C Orion airframes or components. Another risk is contractor performance and dependency; relying on a single entity for critical sustainment could be problematic if Boeing faces operational or financial challenges. Mitigation strategies likely include robust government oversight, clearly defined performance metrics within the contract, and potentially incentivizing efficient performance. The fixed-price structure itself aims to mitigate cost overrun risks for the government, shifting some of that risk to the contractor. Furthermore, the P-3C is a legacy platform, and risks associated with obsolescence and the eventual transition to newer aircraft (like the P-8 Poseidon) are inherent to its sustainment.

What is the expected program effectiveness or impact of these sustainment services on the Navy's P-3C Orion fleet readiness?

The expected program effectiveness is to ensure the continued operational readiness and mission capability of the U.S. Navy's P-3C Orion fleet. These sustainment services, particularly engineering support, are crucial for maintaining the airworthiness of aging aircraft, addressing wear and tear, and resolving technical issues that arise during operations. By providing timely and effective support, the contract aims to minimize aircraft downtime, reduce the occurrence of mission-impacting failures, and extend the operational life of the P-3C fleet until it is fully replaced. High fleet readiness directly supports the Navy's maritime patrol, intelligence, surveillance, and reconnaissance (ISR) missions.

How has federal spending on P-3C Orion sustainment evolved over the past five years, and does this contract represent a continuation or a shift?

Analyzing historical spending trends for P-3C Orion sustainment requires access to detailed federal procurement data. However, it is generally understood that spending on legacy platforms like the P-3C tends to remain relatively stable or may even increase as aircraft age and require more intensive maintenance and support. This contract, awarded in late 2012 with an end date in late 2018, represents a significant portion of sustainment funding during that period. As the Navy transitions to the P-8 Poseidon, spending on P-3C sustainment would likely be expected to gradually decrease over time, although the pace of this transition dictates the exact spending trajectory. This contract appears to be a continuation of necessary support for the existing P-3C fleet during a period of transition.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6134012R0030

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6200 J S MCDONNELL BLVD, SAINT LOUIS, MO, 63134

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: $54,863,069

Exercised Options: $53,146,153

Current Obligation: $52,976,563

Actual Outlays: $-38,218

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline