Boeing awarded $31.4M modification for T-45C virtual mission training system upgrades
Contract Overview
Contract Amount: $31,359,137 ($31.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-09-30
End Date: 2026-12-31
Contract Duration: 1,918 days
Daily Burn Rate: $16.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE T-45C VIRTUAL MISSION TRAINING SYSTEM OPERATIONAL FLIGHT TRAINER MODIFICATION (T-45C VMTS OFT MOD) CONTRACT IS FOR THE MODIFICATION AND UPGRADE OF THE SIX (6) OFTS LOCATED AT NAVAL AIR STATION (NAS) PENSACOLA, FLORIDA.
Place of Performance
Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $31.4 million to THE BOEING COMPANY for work described as: THE T-45C VIRTUAL MISSION TRAINING SYSTEM OPERATIONAL FLIGHT TRAINER MODIFICATION (T-45C VMTS OFT MOD) CONTRACT IS FOR THE MODIFICATION AND UPGRADE OF THE SIX (6) OFTS LOCATED AT NAVAL AIR STATION (NAS) PENSACOLA, FLORIDA. Key points: 1. Contract focuses on upgrading existing virtual mission training systems, not new development. 2. Sole-source award suggests limited market alternatives or specific contractor expertise. 3. Long performance period (5 years) indicates a substantial upgrade or integration effort. 4. Firm-fixed-price contract shifts cost risk to the contractor. 5. Geographic concentration in Florida for the six training facilities. 6. Modification of existing assets rather than procurement of new systems.
Value Assessment
Rating: fair
The contract value of $31.4 million for modifying six virtual mission training systems appears reasonable given the scope of upgrades and the five-year performance period. However, without detailed breakdowns of the modifications or comparisons to similar system upgrades, a precise value-for-money assessment is challenging. The firm-fixed-price structure is a positive indicator for cost control, but the lack of competition limits benchmarking against market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating that the Department of the Navy identified The Boeing Company as the only responsible source capable of performing the required modifications. This could be due to proprietary technology, unique expertise with the T-45C system, or a lack of viable alternatives. The absence of a competitive bidding process means that price discovery through market forces was not utilized.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as competition is absent, limiting opportunities for cost savings through bidding.
Public Impact
Naval aviators undergoing training will benefit from updated virtual mission training capabilities. The services delivered include modifications and upgrades to existing flight training systems. The geographic impact is concentrated at Naval Air Station Pensacola, Florida. The contract supports the readiness and effectiveness of the T-45C training pipeline.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potential cost savings.
- Long contract duration may introduce risks related to technological obsolescence or changing requirements.
- Modification scope needs clear definition to ensure effective upgrade and prevent scope creep.
Positive Signals
- Firm-fixed-price contract aligns incentives and transfers cost risk to the contractor.
- Focus on upgrading existing systems leverages prior investments.
- Long performance period allows for thorough integration and testing of modifications.
Sector Analysis
This contract falls within the broader aerospace and defense sector, specifically focusing on training systems and simulation technology. The market for advanced flight simulators and training system modifications is specialized, often dominated by original equipment manufacturers or companies with deep expertise in specific platforms like the T-45C. Spending in this area is critical for maintaining pilot proficiency and readiness, with investments often tied to the lifecycle of the aircraft and training programs.
Small Business Impact
This contract does not appear to involve a small business set-aside. As a sole-source award to a large prime contractor, there is a potential for subcontracting opportunities for small businesses. However, the extent to which small businesses will participate depends on Boeing's subcontracting plan and the specific nature of the modifications required.
Oversight & Accountability
Oversight for this contract will be managed by the Department of the Navy, likely through contracting officers and program managers. Transparency is facilitated by contract databases, but detailed oversight of the modification process and cost management relies on internal Navy procedures and potentially audits. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- T-45C Goshawk Training Aircraft Program
- Naval Aviation Training Systems
- Virtual Mission Training Systems
- Defense Simulation and Training Contracts
Risk Flags
- Sole-source award limits competition.
- Long performance period may pose risks.
- Modification scope clarity is crucial.
Tags
defense, department-of-the-navy, t-45c, training-systems, modification, firm-fixed-price, sole-source, operational-flight-trainer, virtual-mission-training, florida, aviation-training
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.4 million to THE BOEING COMPANY. THE T-45C VIRTUAL MISSION TRAINING SYSTEM OPERATIONAL FLIGHT TRAINER MODIFICATION (T-45C VMTS OFT MOD) CONTRACT IS FOR THE MODIFICATION AND UPGRADE OF THE SIX (6) OFTS LOCATED AT NAVAL AIR STATION (NAS) PENSACOLA, FLORIDA.
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 $31.4 million.
What is the period of performance?
Start: 2021-09-30. End: 2026-12-31.
What specific modifications are included in this contract, and what is the expected impact on training effectiveness?
The provided data indicates the contract is for the 'modification and upgrade' of the T-45C Virtual Mission Training System Operational Flight Trainer (OFT). While the specific technical details of the modifications are not publicly available in this summary, such upgrades typically involve enhancing simulation fidelity, updating software for current operational tactics, improving hardware components for reliability, or integrating new training scenarios. The expected impact is to ensure the training system remains relevant and effective in preparing naval aviators for contemporary operational environments, thereby improving pilot readiness and reducing training risks associated with outdated systems.
Why was this contract awarded on a sole-source basis, and what are the implications for cost?
The sole-source award suggests that the Department of the Navy determined The Boeing Company to be the only responsible source capable of providing the necessary modifications. This could stem from Boeing's proprietary knowledge of the T-45C OFT system, unique technical capabilities, or the need for seamless integration with existing infrastructure. The primary implication for cost is the absence of competitive pressure, which can sometimes lead to higher prices than if multiple bidders had vied for the contract. However, the firm-fixed-price (FFP) nature of the contract shifts cost overrun risks to Boeing, providing some cost certainty for the government.
How does the $31.4 million contract value compare to historical spending on T-45C training system support or similar upgrades?
Without access to historical spending data specifically for T-45C OFT modifications or comparable simulation system upgrades across the DoD, a direct comparison is difficult. However, $31.4 million spread over approximately five years (from September 2021 to December 2026) represents an average annual spend of roughly $6.3 million. This figure needs to be contextualized against the complexity of the upgrades and the total lifecycle cost of the T-45C training program. Larger, more comprehensive upgrades or new system procurements would naturally involve significantly higher figures, while routine maintenance would be lower.
What are the key performance indicators (KPIs) or metrics used to assess the success of this contract?
Specific Key Performance Indicators (KPIs) for this contract modification are not detailed in the provided summary. However, typical metrics for such contracts would likely include the timely completion of modification milestones, adherence to the firm-fixed-price budget, successful system integration and testing, achievement of specified performance enhancements (e.g., improved simulation accuracy, expanded training scenarios), and minimal disruption to ongoing pilot training schedules. User feedback from instructors and student naval aviators on the effectiveness of the upgraded systems would also be a crucial qualitative measure.
What is Boeing's track record with the T-45C program and similar training system modifications?
The Boeing Company has a long-standing relationship with the T-45C Goshawk program, as it is the prime contractor for the aircraft itself. This deep familiarity with the platform provides Boeing with significant institutional knowledge regarding its systems, including the associated training simulators. Their extensive experience in aerospace manufacturing and defense systems integration suggests a strong capability to undertake complex modifications and upgrades to training equipment. While specific details on past modifications to the T-45C OFT are not provided, Boeing's overall track record in delivering large-scale defense systems indicates a capacity for managing such projects.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6134021R0029
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JAMES 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: $31,444,181
Exercised Options: $31,359,137
Current Obligation: $31,359,137
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $965,556
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-09-30
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-09-30
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