DoD awards $12.6M for C-130J maintenance support to Boeing, raising questions about value and competition
Contract Overview
Contract Amount: $12,577,530 ($12.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2008-03-28
End Date: 2012-02-14
Contract Duration: 1,418 days
Daily Burn Rate: $8.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: MAINTENANCE SUPPORT FOR C-130J
Place of Performance
Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32548
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $12.6 million to THE BOEING COMPANY for work described as: MAINTENANCE SUPPORT FOR C-130J Key points: 1. Contract awarded to a single, large vendor, potentially limiting competitive pricing. 2. The 'Time and Materials' contract type can lead to cost overruns if not managed closely. 3. Lack of small business participation noted. 4. Spending falls within the typical range for aircraft maintenance contracts.
Value Assessment
Rating: fair
The contract value of $12.6M for C-130J maintenance support appears reasonable given the complexity of military aircraft. However, without detailed cost breakdowns or comparison to similar contracts for different aircraft types, a definitive value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the award to a single large entity suggests limited bidders or a specific capability requirement.
Taxpayer Impact: Taxpayer funds are utilized for essential military aircraft maintenance. The effectiveness of competition in driving down costs will determine the ultimate taxpayer impact.
Public Impact
Ensures continued operational readiness of the C-130J fleet. Supports a critical component of national defense logistics. Potential for cost efficiencies through competitive bidding on future contracts.
Waste & Efficiency Indicators
Waste Risk Score: 88 / 10
Warning Flags
- Time and Materials contract type
- Lack of small business involvement
Positive Signals
- Full and open competition
- Essential defense asset maintenance
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance. Spending benchmarks for such services vary widely based on aircraft type, age, and required support level.
Small Business Impact
The contract data indicates no small business participation. This suggests that the prime contractor, Boeing, likely performed all work or subcontracted to other large businesses, missing opportunities for small business engagement.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial to manage the 'Time and Materials' aspects and ensure cost-effectiveness.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to T&M contract type
- Lack of small business participation
- Limited visibility into specific competition limitations
- Need for detailed cost-effectiveness analysis
Tags
aircraft-manufacturing, department-of-defense, fl, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.6 million to THE BOEING COMPANY. MAINTENANCE SUPPORT FOR C-130J
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 $12.6 million.
What is the period of performance?
Start: 2008-03-28. End: 2012-02-14.
What was the specific justification for awarding this contract to The Boeing Company under full and open competition, and were there any limitations on the number of potential bidders?
While the award was under 'full and open competition,' the specific justification for selecting The Boeing Company and any limitations on bidders are not detailed in the provided data. Further investigation into the solicitation documents and award rationale would be necessary to understand if specific technical capabilities or existing support structures influenced the decision, potentially narrowing the competitive field despite the initial designation.
How effectively was the 'Time and Materials' contract type managed to control costs and prevent potential overruns for this $12.6M C-130J maintenance support contract?
The 'Time and Materials' (T&M) contract type inherently carries a risk of cost overruns if not meticulously managed. Without access to detailed performance reports, cost tracking, and oversight records, it's difficult to assess the effectiveness of cost control for this specific contract. Robust government oversight, including detailed review of labor hours, material costs, and defined ceiling limits, would have been critical to mitigate risks and ensure taxpayer value.
What is the long-term strategic value of this maintenance support contract for the C-130J fleet, and how does it align with broader DoD readiness goals?
This contract provides essential maintenance support, directly contributing to the operational readiness and longevity of the C-130J aircraft, a vital asset for global logistics and troop transport. Its strategic value lies in ensuring the fleet's availability for critical missions. Alignment with DoD readiness goals is high, as maintaining aging aircraft fleets is fundamental to sustained military operations and power projection capabilities.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
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
Financial Breakdown
Contract Ceiling: $12,577,530
Exercised Options: $12,577,530
Current Obligation: $12,577,530
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F3365798D0002
IDV Type: IDC
Timeline
Start Date: 2008-03-28
Current End Date: 2012-02-14
Potential End Date: 2012-02-14 00:00:00
Last Modified: 2014-07-16
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