DoD Awards Boeing $10.5M for Chinook Helicopter Blade Maintenance, Facing Limited Competition
Contract Overview
Contract Amount: $10,458,128 ($10.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-06-26
End Date: 2027-09-30
Contract Duration: 826 days
Daily Burn Rate: $12.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MAINTENANCE AND OVERHAUL OF 2 NSS'S, FWD AND AFT ROTARY BLADES FOR THE CHINOOK WEAPON SYSTEM AND ASSOCIATED CDRL'S.
Place of Performance
Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078
Plain-Language Summary
Department of Defense obligated $10.5 million to THE BOEING COMPANY for work described as: MAINTENANCE AND OVERHAUL OF 2 NSS'S, FWD AND AFT ROTARY BLADES FOR THE CHINOOK WEAPON SYSTEM AND ASSOCIATED CDRL'S. Key points: 1. Significant contract value for critical helicopter component maintenance. 2. Sole-source award to Boeing raises concerns about competition and potential price inflation. 3. Long contract duration (over 2 years) requires careful monitoring. 4. Focus on a specific, high-value weapon system component.
Value Assessment
Rating: questionable
The award amount of $10.5M for maintenance and overhaul of Chinook rotary blades is substantial. Without comparable contract data or a competitive bidding process, it's difficult to definitively assess if this price is optimal. The lack of available competition data makes benchmarking challenging.
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 scenario. This significantly restricts price discovery and may lead to higher costs for taxpayers compared to a fully open bidding process.
Taxpayer Impact: The lack of competition likely results in a higher cost to taxpayers than if multiple vendors had vied for the contract.
Public Impact
Ensures continued operational readiness of the Chinook fleet, a vital military asset. Potential for increased costs due to limited competition impacts defense budget allocation. Highlights reliance on a single contractor for critical component maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Sole-source award
- Lack of price benchmark data
Positive Signals
- Supports critical defense asset maintenance
- Long-term contract provides stability
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and maintenance. Spending in this area is often characterized by high technical requirements and long product lifecycles, sometimes leading to limited competition.
Small Business Impact
The data indicates this contract was not awarded to small businesses. The nature of specialized aerospace maintenance often favors large, established manufacturers with specific certifications and infrastructure.
Oversight & Accountability
Given the sole-source nature, robust oversight is crucial to ensure fair pricing and adherence to contract specifications. The Department of Defense and the Defense Logistics Agency should actively monitor performance and costs throughout the contract period.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for cost overruns
- Reliance on a single supplier
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 $10.5 million to THE BOEING COMPANY. MAINTENANCE AND OVERHAUL OF 2 NSS'S, FWD AND AFT ROTARY BLADES FOR THE CHINOOK WEAPON SYSTEM AND ASSOCIATED CDRL'S.
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 $10.5 million.
What is the period of performance?
Start: 2025-06-26. End: 2027-09-30.
What is the justification for the limited competition for this critical Chinook component maintenance?
The justification for limited competition is not explicitly provided in the data. Typically, such awards are made when only one source possesses the necessary technical expertise, proprietary data, or unique capabilities to perform the required maintenance. Further investigation into the specific technical requirements and historical sourcing practices would be needed to fully understand the rationale.
What are the potential risks associated with a sole-source award for helicopter blade maintenance?
Sole-source awards carry risks of inflated pricing due to the absence of competitive pressure. There's also a risk of vendor lock-in, reduced innovation, and potential complacency from the contractor regarding quality or efficiency. Over-reliance on a single supplier can also create vulnerabilities if that supplier faces operational disruptions.
How does this contract contribute to the overall effectiveness and readiness of the Chinook fleet?
This contract is essential for maintaining the airworthiness and operational readiness of the CH-47 Chinook fleet, a critical asset for troop transport and cargo movement. Regular, high-quality maintenance and overhaul of rotary blades are paramount for flight safety and mission success. Ensuring these components are in top condition directly supports the effectiveness of units relying on the Chinook.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 100 S 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: $10,458,128
Exercised Options: $10,458,128
Current Obligation: $10,458,128
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $250,980
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRPA124D003E
IDV Type: IDC
Timeline
Start Date: 2025-06-26
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 12:09:00
Last Modified: 2026-01-14
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