DoD's $1.89B E-3 Sustaining Engineering Services Contract Awarded to Boeing for FMS Participants
Contract Overview
Contract Amount: $18,893,740 ($18.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2008-02-01
End Date: 2009-12-31
Contract Duration: 699 days
Daily Burn Rate: $27.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE
Sector: Defense
Official Description: E-3 CY08 SUSTAINING ENGINEERING SERVICES; FMS PARTICIPANTS (NATO, UK, FR, SA AND JA)
Place of Performance
Location: KENT, KING County, WASHINGTON, 98032
Plain-Language Summary
Department of Defense obligated $18.9 million to THE BOEING COMPANY for work described as: E-3 CY08 SUSTAINING ENGINEERING SERVICES; FMS PARTICIPANTS (NATO, UK, FR, SA AND JA) Key points: 1. The contract is for sustaining engineering services for the E-3 aircraft, crucial for NATO and allied nations. 2. Awarded to The Boeing Company, this contract highlights a significant reliance on a single prime contractor for specialized aircraft support. 3. The lack of competition raises questions about potential price inflation and limited opportunities for alternative solutions. 4. The sector is dominated by large aerospace manufacturers, making competition for such specialized services inherently challenging.
Value Assessment
Rating: questionable
The contract value of $1.89 billion over two years is substantial. Without a competitive bidding process, it's difficult to assess if this price reflects fair market value compared to similar sustainment contracts for complex aircraft systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition award. This significantly restricts price discovery and may lead to higher costs for the government and FMS participants.
Taxpayer Impact: The absence of competition likely results in taxpayers bearing a higher cost than if the services were procured through a competitive process.
Public Impact
Ensures continued operational readiness for critical E-3 airborne early warning and control aircraft used by the US and allied nations. Supports international partnerships by providing essential maintenance and engineering for shared defense assets. Potential for cost overruns due to lack of competitive pressure could impact defense budgets. Highlights the long-term sustainment needs and associated costs for major defense platforms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Supports critical FMS participants
- Ensures aircraft sustainment
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft manufacturing and sustainment services. Benchmarks for similar long-term sustainment contracts are often high due to the specialized nature of the work and limited number of qualified providers.
Small Business Impact
The data indicates this contract was awarded to The Boeing Company, a large prime contractor. There is no information suggesting opportunities for small businesses to participate in this specific sustainment engineering service contract.
Oversight & Accountability
The contract's limited competition status warrants close oversight to ensure the government receives value for money and that pricing is justified. Accountability for performance and cost management is crucial given the significant expenditure.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for cost overruns.
- Reliance on a single contractor for critical services.
- Lack of transparency in pricing justification.
Tags
aircraft-manufacturing, department-of-defense, wa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.9 million to THE BOEING COMPANY. E-3 CY08 SUSTAINING ENGINEERING SERVICES; FMS PARTICIPANTS (NATO, UK, FR, SA AND JA)
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 $18.9 million.
What is the period of performance?
Start: 2008-02-01. End: 2009-12-31.
What specific factors contributed to this contract being 'NOT AVAILABLE FOR COMPETITION,' and were alternatives explored?
The determination of 'NOT AVAILABLE FOR COMPETITION' typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. A thorough review should confirm if these conditions truly exist and if any efforts were made to foster competition through phased approaches or by breaking down the requirement.
How is the government ensuring cost-effectiveness and preventing potential overpricing given the sole-source nature of this award?
With a sole-source award, robust cost analysis, including detailed audits of contractor's cost proposals and comparison with historical data or independent cost estimates, is essential. Establishing clear performance metrics and incentivizing efficiency can also help mitigate risks associated with a lack of competitive pressure.
What is the long-term strategy for E-3 aircraft sustainment, and will future requirements be opened to competition?
Understanding the long-term sustainment plan is critical. Future contract actions should aim to introduce competition where feasible, perhaps by segmenting services or encouraging new entrants through technology insertion or knowledge transfer. This ensures sustained value and innovation over the aircraft's lifecycle.
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: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7755 E MARGINAL WAY S, SEATTLE, WA, 98108
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $18,893,740
Exercised Options: $18,893,740
Current Obligation: $18,893,740
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F1962801D0016
IDV Type: IDC
Timeline
Start Date: 2008-02-01
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2019-04-20
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