DoD's $58M B-52 IBWU Upgrade Awarded to Boeing Without Competition
Contract Overview
Contract Amount: $58,094,786 ($58.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2015-04-30
End Date: 2020-04-30
Contract Duration: 1,827 days
Daily Burn Rate: $31.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: ACAT II B-52H 1760 INTERNAL WEAPONS BAY UPGRADE (IBWU) INCREMENT 1.2
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $58.1 million to THE BOEING COMPANY for work described as: ACAT II B-52H 1760 INTERNAL WEAPONS BAY UPGRADE (IBWU) INCREMENT 1.2 Key points: 1. The contract awarded to The Boeing Company for the B-52 IBWU upgrade represents a significant investment in aircraft modernization. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The 'OK' status for state and standard suggests no immediate red flags in contract execution, but the non-competitive nature warrants scrutiny. 4. This spending falls within the Aircraft Manufacturing sector, which often involves complex, high-value defense contracts.
Value Assessment
Rating: questionable
The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed tightly. Without competitive benchmarks, assessing the value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for this upgrade, as there was no market pressure to drive down costs.
Public Impact
Modernization of the B-52 bomber fleet ensures continued strategic capabilities. The upgrade focuses on the internal weapons bay, potentially enhancing payload capacity or integration of new systems. Taxpayers are funding a critical defense asset upgrade, impacting national security readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Incentive Fee contract type
- Sole-source award
Positive Signals
- Essential defense system upgrade
- Potential for enhanced aircraft capability
Sector Analysis
This contract falls under the Aircraft Manufacturing sector, specifically for defense applications. Spending benchmarks in this area are highly variable due to the specialized nature of military hardware.
Small Business Impact
The data indicates this contract was awarded to The Boeing Company and does not specify any small business participation. Large sole-source contracts often have limited direct involvement from small businesses.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of the Air Force to ensure fair pricing and effective execution, despite the lack of competitive pressure.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Potential for cost overruns (CPIF)
- Lack of competitive benchmarking
- Limited transparency on justification for sole-source
Tags
aircraft-manufacturing, department-of-defense, ok, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.1 million to THE BOEING COMPANY. ACAT II B-52H 1760 INTERNAL WEAPONS BAY UPGRADE (IBWU) INCREMENT 1.2
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 $58.1 million.
What is the period of performance?
Start: 2015-04-30. End: 2020-04-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of viable alternatives. Without this information, it's difficult to assess if the non-competitive approach was truly necessary or if it represents a missed opportunity for cost savings through competition.
How does the final cost compare to initial estimates, given the Cost Plus Incentive Fee structure?
Cost Plus Incentive Fee contracts aim to incentivize contractor performance by linking profit to achieving cost, schedule, and performance targets. Analyzing the final cost against initial estimates and the incentive structure is crucial to determine if the government received good value and if the contractor met the desired outcomes effectively.
What are the long-term implications of upgrading the B-52's internal weapons bay for its operational effectiveness?
Upgrading the internal weapons bay is likely intended to enhance the B-52's ability to carry and deploy a wider range of munitions, including advanced or next-generation weapons. This modernization is critical for maintaining the bomber's relevance and effectiveness in evolving threat environments and strategic deterrence missions.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $59,132,211
Exercised Options: $59,132,211
Current Obligation: $58,094,786
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862810D1000
IDV Type: IDC
Timeline
Start Date: 2015-04-30
Current End Date: 2020-04-30
Potential End Date: 2020-04-30 00:00:00
Last Modified: 2020-09-10
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