DoD Awards $5.3M for P-8 & C-40 Engineering Support to Boeing, No Competition

Contract Overview

Contract Amount: $5,308,821 ($5.3M)

Contractor: Boeing Aerospace Operations, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-01-01

End Date: 2026-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $4.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NEW TASK ORDER FOR LABOR AND REACH BACK SUPPORT FOR P8 & C40 CONTRACTOR ENGINEERING TECHNICAL SERVICES (CETS) CONTRACTOR FIELD SERVICES (CFS)

Place of Performance

Location: OAK HARBOR, ISLAND County, WASHINGTON, 98278

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $5.3 million to BOEING AEROSPACE OPERATIONS, INC. for work described as: NEW TASK ORDER FOR LABOR AND REACH BACK SUPPORT FOR P8 & C40 CONTRACTOR ENGINEERING TECHNICAL SERVICES (CETS) CONTRACTOR FIELD SERVICES (CFS) Key points: 1. Significant award for specialized aerospace engineering services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long-term contract (3 years) indicates ongoing need for these services. 4. Focus on P-8 and C-40 aircraft suggests specific platform sustainment.

Value Assessment

Rating: fair

The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without more detailed cost breakdowns and comparison to similar sole-source contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this $5.3M award means taxpayers may not be receiving the best possible price for these critical engineering services.

Public Impact

Ensures continued engineering and technical support for vital P-8 and C-40 aircraft. Supports the operational readiness of naval aviation platforms. Potential for increased costs due to sole-source nature impacts taxpayer value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus contract type
Long duration

Positive Signals

Ensures critical platform support
Experienced contractor

Sector Analysis

This award falls within the Engineering Services sector, specifically supporting aerospace and defense platforms. Spending in this area is crucial for maintaining complex military assets, but competitive bidding is typically preferred to ensure cost-effectiveness.

Small Business Impact

This award went to a large prime contractor, Boeing Aerospace Operations, Inc. There is no indication of small business participation in this specific task order, which is common for large sole-source prime contracts.

Oversight & Accountability

The Department of the Navy awarded this task order. Oversight will be critical to manage the cost-plus fixed fee structure and ensure performance meets requirements without unnecessary expenditure.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Cost-plus contract type
Potential for cost overruns
Limited transparency on pricing justification
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.3 million to BOEING AEROSPACE OPERATIONS, INC.. NEW TASK ORDER FOR LABOR AND REACH BACK SUPPORT FOR P8 & C40 CONTRACTOR ENGINEERING TECHNICAL SERVICES (CETS) CONTRACTOR FIELD SERVICES (CFS)

Who is the contractor on this award?

The obligated recipient is BOEING AEROSPACE OPERATIONS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2024-01-01. End: 2026-12-31.

What is the justification for awarding this contract sole-source, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. For this contract, the specific rationale needs to be documented by the agency. To ensure fair pricing, the government should conduct thorough cost realism analyses and potentially negotiate fee structures that incentivize efficiency, even without upfront competition.

What are the potential risks associated with a cost-plus fixed fee contract for engineering services?

Cost-plus fixed fee (CPFF) contracts carry risks of cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If not managed diligently, the contractor may have less incentive to control costs. The government's oversight role is crucial in monitoring expenditures, ensuring only reasonable and allocable costs are reimbursed, and verifying that the fixed fee remains appropriate for the scope of work.

How does this sole-source award impact the long-term sustainment strategy and cost-effectiveness for the P-8 and C-40 platforms?

Sole-source awards can limit competitive pressure, potentially leading to higher long-term sustainment costs if not carefully managed. While it ensures continuity of support from an incumbent, it may forgo opportunities for innovation and cost reductions that could arise from a competitive environment. The agency should consider future strategies that incorporate competition where feasible to drive efficiency.

Industry Classification

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

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Boeing Company

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: $9,199,065

Exercised Options: $9,199,065

Current Obligation: $5,308,821

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6893620D0007

IDV Type: IDC

Timeline