Boeing Awarded $617.8M for C-130 Hercules Electronics & Communication Support
Contract Overview
Contract Amount: $121,401,644 ($121.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2002-08-06
End Date: 2011-08-28
Contract Duration: 3,309 days
Daily Burn Rate: $36.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200211!000257!5700!GJ40 !WARNER ROBINS ALC/LUK !F3365798D0002 !A!N! !N!RJ12 !20020806!20081231!617869912!085188316!009256819!N!BOEING AEROSPACE OPERATIONS IN!BLDG 999 !FORT WALTON BE !FL!32547!24475!091!12!FORT WALTON BEACH !OKALOOSA !FLORIDA !+000004000000!N!N!000000000000!5865!ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ!A7 !ELECTRONICS AND COMMUNICATION !3ACD!C-130 HERCULES !334511!E! !5!B!S! ! !D!20060930!B! ! !B! !A!N!R!1!001!B! !A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! ! ! !0001!
Place of Performance
Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32548
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $121.4 million to THE BOEING COMPANY for work described as: 200211!000257!5700!GJ40 !WARNER ROBINS ALC/LUK !F3365798D0002 !A!N! !N!RJ12 !20020806!20081231!617869912!085188316!009256819!N!BOEING AEROSPACE OPERATIONS IN!BLDG 999 !FORT WALTON BE !FL!32547!24475!091!12!FORT WALTON BEACH !OKALO… Key points: 1. Contract awarded to The Boeing Company for C-130 Hercules support. 2. Significant value ($617.8M) suggests critical, long-term sustainment needs. 3. Full and open competition was utilized, indicating a competitive bidding process. 4. The contract spans over 9 years, highlighting long-term program commitment.
Value Assessment
Rating: good
The contract value of $617.8M over 9 years appears reasonable for complex aircraft sustainment. Benchmarking against similar C-130 support contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was used, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to sole-source awards.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, likely resulting in a fair market price for the services.
Public Impact
Ensures continued operational readiness of C-130 aircraft, vital for military logistics and transport. Supports jobs within The Boeing Company and its supply chain. Long-term nature of the contract provides stability for program management and execution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is extensive (9 years).
- Cost Plus Award Fee structure can incentivize performance but requires careful monitoring.
- Specific details on deliverables and performance metrics are not provided.
Positive Signals
- Full and open competition utilized.
- Awarded to a known, experienced aerospace contractor.
- Contract supports a critical military platform.
Sector Analysis
This contract falls within the Defense sector, specifically supporting aircraft sustainment and electronics. Spending benchmarks for similar long-term sustainment contracts for major platforms are typically in the hundreds of millions to billions of dollars.
Small Business Impact
While the prime contractor is The Boeing Company, the contract's size and scope may offer subcontracting opportunities for small businesses in specialized areas of electronics, repair, or logistics.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for oversight. The Cost Plus Award Fee structure necessitates diligent performance monitoring and auditing to ensure value for money.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration (9 years).
- Cost Plus Award Fee structure requires strong oversight.
- Potential for scope creep over the contract's life.
- Reliance on a single prime contractor for critical support.
- Lack of specific performance metrics in the provided data.
Tags
aircraft-manufacturing, department-of-defense, fl, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $121.4 million to THE BOEING COMPANY. 200211!000257!5700!GJ40 !WARNER ROBINS ALC/LUK !F3365798D0002 !A!N! !N!RJ12 !20020806!20081231!617869912!085188316!009256819!N!BOEING AEROSPACE OPERATIONS IN!BLDG 999 !FORT WALTON BE !FL!32547!24475!091!12!FORT WALTON BEACH !OKALOOSA !FLORIDA !+000004000000!N!N!000000000000!5865!ELCT CNTRMSRS, CNTR-CNTR-MSRS & QCK RCTN CPBLTY EQ!A7 !ELECTRONICS AND COMMUNICATION !3ACD!C-130 HERCULES !334511!E! !5!B!S! ! !D!20060930!B
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $121.4 million.
What is the period of performance?
Start: 2002-08-06. End: 2011-08-28.
What are the key performance indicators (KPIs) and award fee criteria defined in the contract to ensure effective service delivery and value for money?
The contract's effectiveness hinges on clearly defined KPIs and award fee criteria. These should encompass metrics such as aircraft availability, turnaround time for repairs, system reliability, and adherence to budget. Robust oversight by the Defense Contract Management Agency is crucial to validate performance against these criteria and ensure the government receives optimal value, especially given the Cost Plus Award Fee structure.
How does the long duration of this contract impact the government's flexibility to adapt to evolving C-130 capabilities or alternative platforms?
The 9-year duration provides stability but reduces flexibility. The government must ensure contract clauses allow for modifications or termination for convenience if technological advancements or strategic shifts render the C-130 platform less critical or if more cost-effective alternatives emerge. Regular reviews are essential to mitigate the risk of being locked into an outdated or inefficient solution.
What is the projected total cost of ownership for the C-130 fleet under this contract, and how does it compare to alternative sustainment strategies?
Projecting the total cost of ownership requires analyzing the base contract value, potential award fees, and any contract modifications over its 9-year lifespan. Comparing this to alternative strategies, such as organic depot maintenance or consolidating support across different C-130 variants, is vital. A comprehensive cost-benefit analysis should inform whether this contract represents the most economically advantageous approach for sustaining the C-130 fleet.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 626 ANCHORS ST NW, FORT WALTON BEACH, FL, 01
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F3365798D0002
IDV Type: IDC
Timeline
Start Date: 2002-08-06
Current End Date: 2011-08-28
Potential End Date: 2011-08-28 00:00:00
Last Modified: 2014-07-16
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