DoD Awards Boeing $39.3M for T-45 SLEP Phase 2 Aircraft Manufacturing
Contract Overview
Contract Amount: $39,280,353 ($39.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-01-19
End Date: 2021-04-30
Contract Duration: 1,197 days
Daily Burn Rate: $32.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: T-45 - SLEP PHASE 2
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $39.3 million to THE BOEING COMPANY for work described as: T-45 - SLEP PHASE 2 Key points: 1. Significant contract value for aircraft sustainment and upgrade. 2. Sole-source award to Boeing raises questions about competition and pricing. 3. Long contract duration (1197 days) may indicate complex work or potential for cost overruns. 4. Focus on aircraft manufacturing and sustainment within the Defense sector.
Value Assessment
Rating: questionable
The contract value of $39.3 million for a 1197-day duration suggests a substantial investment. Without comparable contracts or detailed cost breakdowns, assessing the value for money is difficult, especially given the sole-source nature.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Boeing. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this significant award means taxpayers may not be receiving the best possible price for these aircraft sustainment services.
Public Impact
Impacts readiness and modernization of the T-45 training aircraft fleet. Potential for extended operational life of critical training platforms. Sole-source award may set a precedent for future sole-source contracts in this area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long duration
Positive Signals
- Supports critical training aircraft
- Experienced contractor
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically supporting the Department of the Navy's training fleet. Spending benchmarks for aircraft sustainment and upgrade programs can vary widely based on complexity and scope.
Small Business Impact
The data indicates this contract was awarded to The Boeing Company, a large prime contractor. There is no information provided to suggest any subcontracting opportunities for small businesses on this specific award.
Oversight & Accountability
As a sole-source award, oversight is crucial to ensure fair pricing and effective execution. The Department of the Navy's contracting officers must diligently monitor costs and performance to protect taxpayer interests.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type can lead to cost overruns.
- Long contract duration increases risk exposure.
- Lack of transparency in pricing justification.
Tags
aircraft-manufacturing, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.3 million to THE BOEING COMPANY. T-45 - SLEP PHASE 2
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 $39.3 million.
What is the period of performance?
Start: 2018-01-19. End: 2021-04-30.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The contracting agency should have conducted a price analysis based on historical data, cost estimates, or other available information to determine fair and reasonable pricing. Without this documentation, it's difficult to assess the thoroughness of the price discovery process.
What are the specific risks associated with a Cost Plus Fixed Fee (CPFF) contract for aircraft sustainment, especially when awarded sole-source?
CPFF contracts can incentivize contractors to increase costs, as their fee is fixed regardless of the total cost incurred. When awarded sole-source, the government lacks the leverage of competition to drive efficiency. This combination increases the risk of cost overruns and reduced value for money, necessitating robust government oversight of contractor expenditures and performance.
How will the successful completion of this SLEP Phase 2 impact the long-term operational effectiveness and cost of the T-45 training aircraft?
Successful completion of the SLEP Phase 2 is intended to extend the service life and enhance the operational capabilities of the T-45 aircraft, thereby improving pilot training effectiveness. This should reduce the need for premature fleet retirement or replacement, potentially leading to cost savings in the long run by maximizing the utility of existing assets.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001916R0178
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS 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: $39,280,353
Exercised Options: $39,280,353
Current Obligation: $39,280,353
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $149,945
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001916G0001
IDV Type: BOA
Timeline
Start Date: 2018-01-19
Current End Date: 2021-04-30
Potential End Date: 2021-04-30 00:00:00
Last Modified: 2022-09-22
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