DoD Awards Boeing $13.1M for Chinook Helicopter Blade Maintenance, Sole-Source Contract
Contract Overview
Contract Amount: $13,090,331 ($13.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-09-15
End Date: 2027-05-31
Contract Duration: 1,354 days
Daily Burn Rate: $9.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MAINTENANCE AND OVERHAUL OF 2 NSNS, FWD AND AFT ROTARY BLADES FOR THE CHINOOK WEAPON SYSTEM AND ASSOCIATED CDRLS.
Place of Performance
Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078
Plain-Language Summary
Department of Defense obligated $13.1 million to THE BOEING COMPANY for work described as: MAINTENANCE AND OVERHAUL OF 2 NSNS, FWD AND AFT ROTARY BLADES FOR THE CHINOOK WEAPON SYSTEM AND ASSOCIATED CDRLS. Key points: 1. Significant contract awarded to a single, established vendor, raising questions about competition. 2. Focus on critical Chinook helicopter components highlights ongoing defense maintenance needs. 3. Long-term contract duration (over 3 years) suggests sustained operational requirements. 4. High value indicates the importance and complexity of the maintenance task.
Value Assessment
Rating: fair
The contract value of $13.1M for maintenance and overhaul of Chinook helicopter blades appears reasonable given the specialized nature of the work and the critical components involved. Benchmarking against similar sole-source contracts for complex aerospace components is difficult without more data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process. The justification for sole-source is not provided.
Taxpayer Impact: The lack of competition in this sole-source award may result in a higher cost to taxpayers than if the contract had been subject to competitive bidding.
Public Impact
Ensures continued operational readiness of the Chinook fleet, a vital military asset. Supports critical defense supply chains and specialized manufacturing capabilities. Impacts military personnel relying on these aircraft for various missions. Potential for increased costs due to sole-source procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of transparency on justification for sole-source.
- Long contract duration could mask inefficiencies.
Positive Signals
- Ensures availability of critical helicopter parts.
- Supports a key defense contractor.
- Addresses essential military maintenance requirements.
Sector Analysis
This contract falls within the Defense sector, specifically related to aircraft parts manufacturing and maintenance. Spending in this area is critical for maintaining military readiness, but often involves high costs due to specialized technology and limited suppliers.
Small Business Impact
This contract was awarded to The Boeing Company, a large aerospace manufacturer. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award, which is common for large, specialized defense contracts.
Oversight & Accountability
Oversight of this sole-source contract by the Department of Defense and the Defense Logistics Agency is crucial to ensure fair pricing and performance. The lack of competition necessitates robust monitoring to prevent potential cost overruns and ensure value for taxpayer money.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for cost overruns without competitive pressure.
- Lack of transparency regarding justification for sole-source.
- Long contract duration may obscure performance issues.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.1 million to THE BOEING COMPANY. MAINTENANCE AND OVERHAUL OF 2 NSNS, FWD AND AFT ROTARY BLADES FOR THE CHINOOK WEAPON SYSTEM AND ASSOCIATED CDRLS.
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 Logistics Agency).
What is the total obligated amount?
The obligated amount is $13.1 million.
What is the period of performance?
Start: 2023-09-15. End: 2027-05-31.
What is the specific justification for awarding this contract on a sole-source basis, and has an alternatives analysis been conducted?
The provided data does not include the justification for the sole-source award. Typically, such justifications are based on factors like unique capabilities, urgent needs, or lack of viable alternatives. A thorough review by the agency should include an analysis of alternatives to ensure the sole-source decision is indeed the most appropriate and cost-effective approach for the government.
How does the per-unit cost of blade maintenance compare to historical data or industry benchmarks for similar services?
Without specific per-unit cost breakdowns and access to historical data or industry benchmarks for Chinook blade maintenance, a direct comparison is not possible. The total contract value of $13.1M provides a high-level figure, but the efficiency and fairness of the pricing can only be assessed through detailed cost analysis and benchmarking against comparable sole-source or competitive contracts.
What mechanisms are in place to ensure the quality and timely delivery of the maintenance and overhaul services under this contract?
The contract includes associated CDRLs (Contract Data Requirements List), which typically outline specific deliverables and reporting requirements. The Department of Defense and the Defense Logistics Agency will likely employ quality assurance surveillance plans (QASPs) and performance monitoring to ensure Boeing meets the contract's technical specifications and delivery schedules for the maintenance and overhaul of the Chinook rotor blades.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: ROUTE 291 & STEWART AVE, RIDLEY PARK, PA, 19078
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: $13,090,331
Exercised Options: $13,090,331
Current Obligation: $13,090,331
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $1,162,362
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRPA118D007U
IDV Type: IDC
Timeline
Start Date: 2023-09-15
Current End Date: 2027-05-31
Potential End Date: 2027-05-31 12:05:00
Last Modified: 2025-09-11
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