Boeing Aerospace Operations contract for E-3A aircraft equipment valued at $194M over 6 years

Contract Overview

Contract Amount: $50,596,582 ($50.6M)

Contractor: Boeing Aerospace Operations, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-07-25

End Date: 2008-09-30

Contract Duration: 2,259 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200210!000235!5700!GD30 !OKLAHOMA CITY ALC/LAD !F0960301D0213 !A!N! !N!SD02 !20020725!20080630!194293544!085188316!009256819!N!BOEING AEROSPACE OPERATIONS, I!2601 LIBERTY PKWY !MIDWEST CITY !OK!73110!48350!109!40!MIDWEST CITY !OKLAHOMA !OKLAHOMA !+000000060880!N!N!000000000000!U009!EDUCATION SERVICES !A1C!OTHER AIRCRAFT EQUIPMENT !3AEC!E-3A !611512!E! !5!B!M! !A!C!20080630!B!F!N!A! !A!U!J!2!002!B! !C!N!Z! ! !N!C!N! ! ! !A!D!A!A!000!A!C!N! ! ! !Y! ! !0001!

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135, UNITED STATES OF AMERICA

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $50.6 million to BOEING AEROSPACE OPERATIONS, INC. for work described as: 200210!000235!5700!GD30 !OKLAHOMA CITY ALC/LAD !F0960301D0213 !A!N! !N!SD02 !20020725!20080630!194293544!085188316!009256819!N!BOEING AEROSPACE OPERATIONS, I!2601 LIBERTY PKWY !MIDWEST CITY !OK!73110!48350!109!40!MIDWEST CITY !OKLAHOMA !OKLAHOMA !+000000060880!N!N!000000000000!U0… Key points: 1. Contract awarded to a single, large business prime contractor. 2. Significant duration suggests a long-term need for aircraft support. 3. Firm Fixed Price contract type aims to control costs. 4. No small business set-aside or subcontracting reported. 5. Geographic concentration in Oklahoma for contract performance. 6. Contract falls under Aircraft Manufacturing NAICS code.

Value Assessment

Rating: fair

The total value of $194,293,544 over approximately 6 years indicates an average annual spend of roughly $32 million. Benchmarking this against similar long-term aircraft support contracts is challenging without more specific service details. The firm fixed-price nature suggests an attempt to manage cost overruns, but the overall value proposition requires deeper analysis of the services rendered and their necessity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of two bids suggests a moderate level of competition. While full and open competition is generally preferred, the specific number of bidders (two) warrants further investigation to ensure the government received the best possible pricing and value.

Taxpayer Impact: A competitive award process, even with two bidders, is generally favorable for taxpayers as it encourages price negotiation and can lead to more cost-effective outcomes compared to sole-source awards.

Public Impact

The primary beneficiary is the Department of the Air Force, receiving support for E-3A aircraft. Services likely include maintenance, repair, and logistical support for critical aircraft systems. Contract performance is concentrated in Midwest City, Oklahoma, impacting the local workforce and economy. The contract supports the operational readiness of a key military asset.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of reported small business subcontracting could limit opportunities for smaller firms in the aerospace supply chain.
Concentration of contract value with a single large prime contractor may reduce market access for smaller competitors.
The long duration of the contract could lead to vendor lock-in if not managed carefully.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Full and open competition, even with two bidders, suggests a structured procurement process.
The contract supports a critical national defense asset (E-3A aircraft).

Sector Analysis

This contract falls within the aerospace and defense sector, specifically related to aircraft manufacturing and support. The market for specialized aircraft maintenance and operations is dominated by a few large prime contractors. The value of this contract, while significant, is within the typical range for long-term sustainment contracts for major weapon systems. Comparable spending benchmarks would depend on the specific services provided, such as depot-level maintenance or component overhaul.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting goals. This suggests that the prime contractor, Boeing Aerospace Operations, Inc., is expected to perform the majority of the work. The absence of small business participation could limit opportunities for smaller firms to engage in the aerospace defense supply chain for this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The firm fixed-price nature provides some cost control. Transparency is facilitated by contract data reporting, though detailed performance metrics and specific oversight activities are not publicly detailed here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

E-3A Sentry Airborne Warning and Control System (AWACS)
Aircraft Maintenance and Repair Services
Aerospace Defense Contracting
Department of Defense Logistics Support

Risk Flags

Limited competition (2 bidders)
Long contract duration
Potential for vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.6 million to BOEING AEROSPACE OPERATIONS, INC.. 200210!000235!5700!GD30 !OKLAHOMA CITY ALC/LAD !F0960301D0213 !A!N! !N!SD02 !20020725!20080630!194293544!085188316!009256819!N!BOEING AEROSPACE OPERATIONS, I!2601 LIBERTY PKWY !MIDWEST CITY !OK!73110!48350!109!40!MIDWEST CITY !OKLAHOMA !OKLAHOMA !+000000060880!N!N!000000000000!U009!EDUCATION SERVICES !A1C!OTHER AIRCRAFT EQUIPMENT !3AEC!E-3A !611512!E! !5!B!M! !A!C!20080630!B!F!N!A! !A!U!J!2!002!B! !C!N!Z! ! !N!C!N! ! ! !A!D!A!A!000!A!C!N! ! ! !Y! ! !0001!

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 Air Force).

What is the total obligated amount?

The obligated amount is $50.6 million.

What is the period of performance?

Start: 2002-07-25. End: 2008-09-30.

What specific services are included under the 'EDUCATION SERVICES' and 'OTHER AIRCRAFT EQUIPMENT' categories for this contract?

The provided data lists 'EDUCATION SERVICES' and 'OTHER AIRCRAFT EQUIPMENT' as product/service codes. However, the raw data does not detail the specific nature of these services or equipment. For 'EDUCATION SERVICES', it could range from technical training for aircrews and maintenance personnel to specialized operational instruction. 'OTHER AIRCRAFT EQUIPMENT' is a broad category and might encompass spare parts, modifications, or specialized tools not covered under standard aircraft manufacturing codes. A deeper dive into the contract's Statement of Work (SOW) or Performance Work Statement (PWS) would be necessary to understand the precise deliverables and their contribution to the overall contract value and mission accomplishment.

How does the $194 million contract value compare to historical spending on E-3A aircraft support?

To compare this $194 million contract value to historical spending on E-3A aircraft support, one would need to analyze past contracts awarded for the E-3A program. This would involve identifying contracts with similar scopes of work, such as sustainment, modernization, or operational support, over previous fiscal years. The current contract's duration of approximately 6 years (from July 2002 to June 2008, with an extended period to September 2008) suggests a significant, but potentially episodic, investment. Without access to a comprehensive database of historical E-3A contracts, it's difficult to definitively state whether this represents an increase, decrease, or stable level of spending relative to prior periods. However, the value is substantial for a single contract supporting a specific aircraft platform.

What is the track record of Boeing Aerospace Operations, Inc. in supporting complex military aircraft programs like the E-3A?

Boeing Aerospace Operations, Inc., as a subsidiary or division of The Boeing Company, has a long and extensive track record in supporting complex military aircraft programs. Boeing is a primary contractor for numerous U.S. military platforms, including fighters, bombers, transports, and specialized aircraft like the E-3A AWACS. Their experience typically encompasses design, manufacturing, sustainment, upgrades, and operational support. For the E-3A specifically, Boeing has been historically involved in its development and ongoing sustainment. This contract likely leverages that established expertise. However, the specific performance metrics and any past issues related to this particular contract or similar ones would require a review of performance reports, contract modifications, and any associated corrective actions.

Given the 'full and open competition' with two bidders, what does this imply about the market for E-3A support services?

The fact that this contract was awarded under 'full and open competition' with two bids suggests a moderately competitive market for E-3A support services. 'Full and open competition' is the preferred method, aiming to maximize opportunities for all responsible sources. However, receiving only two bids might indicate that the pool of qualified contractors capable of performing such specialized work is limited. This could be due to the unique nature of the E-3A platform, high barriers to entry (e.g., security clearances, specialized facilities, technical expertise), or the specific requirements outlined in the solicitation. While competition is present, a limited number of bidders could potentially reduce the downward pressure on pricing compared to a scenario with numerous competing offers.

Are there any significant risks associated with this contract, such as cost overruns or performance deficiencies, based on the available data?

The available data does not explicitly detail significant risks like cost overruns or performance deficiencies for this specific contract. However, certain inherent risks can be inferred. The 'Firm Fixed Price' (FFP) contract type, while designed to control costs, can shift risk to the contractor. If the contractor underestimates costs or encounters unforeseen issues, they may incur losses, potentially impacting their ability or motivation to perform fully. The long duration (over 6 years) also presents risks related to technological obsolescence, changing operational requirements, and contractor performance degradation over time. Without access to contract performance reports, modification history, or any contractor-related issues logged, a definitive risk assessment is limited. The moderate competition (two bidders) could also imply a risk of less aggressive pricing.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Boeing Company (UEI: 009256819)

Address: 6001 S AIR DEPOT BLVD, OKLAHOMA CITY, OK, 73135

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: F0960301D0213

IDV Type: IDC

Timeline