Boeing Awarded $61.7M for C-130 Hercules Aircraft Parts, Raising Questions on Value and Competition

Contract Overview

Contract Amount: $31,006,198 ($31.0M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2003-07-02

End Date: 2009-05-29

Contract Duration: 2,158 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: NOT REPORTED

Sector: Defense

Official Description: 200310!000308!5700!GJ40 !WARNER ROBINS ALC/LUK !F3365798D0002 !A!N! !N!RJ20 !20030702!20060331!617869912!085188316!009256819!N!THE BOEING COMPANY !626 ANCHORS ST NW !FORT WALTON BE !FL!32548!24475!091!12!FORT WALTON BEACH !OKALOOSA !FLORIDA !+000021181733!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A1A!AIRFRAMES AND SPARES !3ACD!C-130 HERCULES !334511!E! !5!B!S! ! !D!20030930!B! ! !B! !A!N!J!2!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 $31.0 million to THE BOEING COMPANY for work described as: 200310!000308!5700!GJ40 !WARNER ROBINS ALC/LUK !F3365798D0002 !A!N! !N!RJ20 !20030702!20060331!617869912!085188316!009256819!N!THE BOEING COMPANY !626 ANCHORS ST NW !FORT WALTON BE !FL!32548!24475!091!12!FORT WALTON BEACH !OKALO… Key points: 1. The contract for C-130 Hercules airframe and spare parts was awarded to The Boeing Company. 2. The total value of the contract is $61,786,991.20, with an initial award of $31,006,198. 3. The contract was awarded under full and open competition, but the specific details of the price discovery process are not fully detailed. 4. The primary sector for this spending is Defense, specifically related to aircraft manufacturing and maintenance.

Value Assessment

Rating: fair

The contract value of $61.7 million for aircraft parts appears substantial. Benchmarking against similar contracts for C-130 components is necessary to determine if the pricing is competitive and reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically fosters competitive pricing. However, without detailed bid information, it's difficult to assess the effectiveness of this competition in achieving the best possible price for the government.

Taxpayer Impact: The government aims to secure necessary aircraft parts at a reasonable cost through competition, ultimately impacting taxpayer funds allocated to defense.

Public Impact

Ensures continued operational readiness of the C-130 Hercules fleet, a critical asset for military transport and operations. Supports The Boeing Company's manufacturing and supply chain, potentially impacting jobs and economic activity in Florida. Highlights the ongoing need for sustainment and spare parts for aging but vital military aircraft. Raises questions about the long-term cost-effectiveness of maintaining older aircraft platforms versus investing in newer technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed pricing breakdown for specific parts.
Potential for cost overruns if not closely monitored.
Dependence on a single manufacturer for critical spares.

Positive Signals

Awarded under full and open competition.
Supports a critical military aircraft platform.
Contract duration allows for phased delivery and potential adjustments.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on aircraft manufacturing and maintenance. Spending on aircraft parts and sustainment is a significant component of the defense budget, often benchmarked against fleet size and operational tempo.

Small Business Impact

While The Boeing Company is a large prime contractor, the contract may involve subcontracts to small businesses for specialized parts or services, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight would typically involve contract officers, quality assurance representatives, and potentially program managers ensuring delivery schedules, quality standards, and adherence to contract terms are met.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for price creep over the contract duration.
Risk of supply chain disruptions affecting delivery timelines.
Ensuring the quality and airworthiness of all supplied parts.
Long-term cost implications of maintaining aging aircraft.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.0 million to THE BOEING COMPANY. 200310!000308!5700!GJ40 !WARNER ROBINS ALC/LUK !F3365798D0002 !A!N! !N!RJ20 !20030702!20060331!617869912!085188316!009256819!N!THE BOEING COMPANY !626 ANCHORS ST NW !FORT WALTON BE !FL!32548!24475!091!12!FORT WALTON BEACH !OKALOOSA !FLORIDA !+000021181733!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A1A!AIRFRAMES AND SPARES !3ACD!C-130 HERCULES !334511!E! !5!B!S! ! !D!20030930!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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $31.0 million.

What is the period of performance?

Start: 2003-07-02. End: 2009-05-29.

What is the specific breakdown of costs for the different types of C-130 Hercules parts included in this contract, and how do these unit costs compare to industry benchmarks?

The provided data does not include a specific cost breakdown per part. A detailed analysis would require access to the contract's line item details and comparison with publicly available pricing data for similar C-130 components. Benchmarking against historical awards or commercial equivalents, where applicable, is crucial for assessing value for money.

Given the full and open competition, what was the range of bids received, and what factors led to The Boeing Company being selected as the awardee?

The data indicates 'full and open competition' but does not provide bid ranges or selection rationale. Understanding the competitive landscape requires reviewing the solicitation details, bid submissions, and the source selection decision document. This information is vital to confirm that the chosen offer represented the best value considering technical factors and price.

What is the projected impact of this contract on the long-term sustainment costs and operational readiness of the C-130 Hercules fleet?

This contract directly addresses the sustainment needs by providing essential spare parts, thereby supporting the operational readiness of the C-130 fleet. The long-term impact depends on the efficiency of the supply chain, the durability of the parts, and the overall maintenance strategy. Effective contract management and potential future competition for follow-on requirements will influence cost-effectiveness.

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: NOT REPORTED (NO)

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: NO

Parent Contract

Parent Award PIID: F3365798D0002

IDV Type: IDC

Timeline