DoD Awards Boeing $23.7M for DVRS Technical Refresh, Delivery Order Under Existing Contract
Contract Overview
Contract Amount: $23,740,945 ($23.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-08-15
End Date: 2027-11-30
Contract Duration: 837 days
Daily Burn Rate: $28.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DVRS TECHNICAL REFRESH JAX/WHIDBEY/RAAF WTT/OFT/BDS
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32212
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $23.7 million to THE BOEING COMPANY for work described as: DVRS TECHNICAL REFRESH JAX/WHIDBEY/RAAF WTT/OFT/BDS Key points: 1. Significant award to a single, large defense contractor. 2. Focus on aircraft engine parts manufacturing highlights a critical defense sector. 3. Contract duration extends over two years, indicating ongoing need. 4. The award is a delivery order, suggesting it's part of a larger, pre-existing framework.
Value Assessment
Rating: fair
The award amount of $23.7 million for a technical refresh of DVRS systems is substantial. Without specific details on the scope of the refresh and comparable contracts for similar systems, a precise value assessment is difficult. However, it represents a significant investment in maintaining critical aircraft engine components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This approach may be justified if Boeing is the sole provider of the specific DVRS technology or possesses unique expertise. However, lack of competition can limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: The taxpayer impact is the direct funding of $23.7 million for this specific technical refresh. Without competition, there's a risk of overpayment compared to a competitive scenario.
Public Impact
Ensures continued operational readiness of critical aircraft engine systems. Supports a major defense contractor, contributing to the defense industrial base. Investment in technology upgrades for aging military platforms. Potential for follow-on work or sustainment contracts related to this refresh.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about price reasonableness.
- Sole-source award may limit innovation and alternative solutions.
- Long contract duration could mask inefficiencies if not closely monitored.
Positive Signals
- Addresses a critical technical refresh need for defense systems.
- Award to a known, experienced contractor (Boeing) reduces execution risk.
- Firm Fixed Price contract provides cost certainty for this delivery order.
Sector Analysis
This award falls within the Defense sector, specifically focusing on Aircraft Engine and Engine Parts Manufacturing. The $23.7 million is a notable sum for a technical refresh, reflecting the complexity and importance of maintaining advanced aerospace components within the Department of Defense.
Small Business Impact
This contract was awarded directly to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data. The focus on specialized aircraft engine parts manufacturing may also limit the direct involvement of smaller, less specialized firms.
Oversight & Accountability
The award is a delivery order under an existing contract, suggesting some level of prior oversight. However, the 'NOT COMPETED' status warrants scrutiny to ensure the justification for sole-source procurement is robust and that the pricing is fair and reasonable through mechanisms like cost analysis or benchmarking.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pressure on pricing.
- Potential for cost overruns if not rigorously managed.
- Dependency on a single contractor for critical system refresh.
- Limited transparency into the specific technical requirements and solutions.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.7 million to THE BOEING COMPANY. DVRS TECHNICAL REFRESH JAX/WHIDBEY/RAAF WTT/OFT/BDS
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 $23.7 million.
What is the period of performance?
Start: 2025-08-15. End: 2027-11-30.
What is the specific technical deficiency being addressed by this DVRS refresh, and how critical is it to aircraft operational readiness?
The data does not specify the exact technical deficiency. However, DVRS (likely referring to a Digital Voice Recording System or similar avionics component) is crucial for flight data recording, post-flight analysis, and incident investigation. A technical refresh suggests obsolescence, performance degradation, or security vulnerabilities that necessitate an upgrade to maintain safety and operational effectiveness of the aircraft.
What is the basis for the sole-source justification, and has a thorough market research been conducted to confirm Boeing's unique capability?
The justification for a sole-source award typically rests on factors like proprietary technology, unique capabilities, essential system integration, or lack of viable alternatives. For this DVRS refresh, the Department of the Navy would need to demonstrate that only Boeing can provide the necessary parts, expertise, or integration services without causing unacceptable delays or costs. Robust market research is essential to validate this claim.
How does the per-unit cost of the components or services in this delivery order compare to previous procurements or industry benchmarks for similar systems?
Without access to the specific line items and quantities within this delivery order, a direct per-unit cost comparison is not possible. However, the contracting officer should have performed a price analysis using historical data, commercial price lists, or other government contracts to ensure the $23.7 million award represents fair and reasonable pricing for the scope of work.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $24,198,931
Exercised Options: $23,740,945
Current Obligation: $23,740,945
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $334,746
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001921G0006
IDV Type: BOA
Timeline
Start Date: 2025-08-15
Current End Date: 2027-11-30
Potential End Date: 2027-11-30 00:00:00
Last Modified: 2025-12-17
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