DoD Awards Boeing $23M for Chinook Helicopter Blade Maintenance Through 2028
Contract Overview
Contract Amount: $23,055,588 ($23.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-11-25
End Date: 2028-07-31
Contract Duration: 979 days
Daily Burn Rate: $23.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MAINTENANCE AND OVERHAUL OF THE FWD AND AFT ROTARY WING BLADES IN SUPPORT OF THE CHINOOK WEAPON SYSTEM
Place of Performance
Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078
Plain-Language Summary
Department of Defense obligated $23.1 million to THE BOEING COMPANY for work described as: MAINTENANCE AND OVERHAUL OF THE FWD AND AFT ROTARY WING BLADES IN SUPPORT OF THE CHINOOK WEAPON SYSTEM Key points: 1. Significant contract for critical helicopter component maintenance. 2. Sole-source award to Boeing raises questions about competition. 3. Long-term contract duration (979 days) suggests ongoing need. 4. Focus on a key defense platform, the Chinook helicopter.
Value Assessment
Rating: fair
The contract value of $23.06M is for a significant maintenance and overhaul effort. Without specific per-unit cost data or comparable contracts for similar services on the Chinook, a precise value assessment is difficult. The firm-fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method may limit price discovery and potentially lead to higher costs for taxpayers compared to a competitive procurement.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.
Public Impact
Ensures continued operational readiness of the vital Chinook helicopter fleet. Supports a critical defense asset used in various military operations. Maintains specialized maintenance capabilities for complex rotary-wing aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and potential cost savings.
- Lack of detailed cost breakdown makes value assessment challenging.
- Long contract duration could mask inefficiencies if not closely monitored.
Positive Signals
- Addresses a critical need for Chinook helicopter sustainment.
- Firm-fixed-price contract provides budget predictability.
- Award to incumbent contractor may ensure continuity of essential services.
Sector Analysis
This contract falls within the Defense sector, specifically supporting aviation maintenance. Spending on aircraft parts and auxiliary equipment manufacturing is substantial within the DoD, with this award representing a portion of that expenditure for a critical weapon system.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
The Department of Defense, through the Defense Logistics Agency, is responsible for overseeing this contract. Standard oversight mechanisms for contract performance and delivery should be in place, but the sole-source nature warrants careful monitoring of costs and adherence to specifications.
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 competition
- Limited cost transparency
- Potential for price escalation
- Long contract duration
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 $23.1 million to THE BOEING COMPANY. MAINTENANCE AND OVERHAUL OF THE FWD AND AFT ROTARY WING BLADES IN SUPPORT OF THE CHINOOK WEAPON SYSTEM
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 $23.1 million.
What is the period of performance?
Start: 2025-11-25. End: 2028-07-31.
What is the historical cost trend for Chinook blade maintenance, and how does this award compare?
Historical cost data for Chinook blade maintenance is not publicly available. However, comparing this $23.06M award over approximately 3 years requires detailed cost breakdowns and analysis of previous contracts. Without this, it's difficult to ascertain if this represents an increase or decrease in cost efficiency for the service.
What are the specific risks associated with a sole-source award for critical helicopter components?
The primary risk of a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Additionally, it can reduce incentives for the contractor to innovate or improve efficiency. There's also a risk of vendor lock-in, making it difficult to switch providers in the future if needed.
How will the effectiveness of this maintenance contract be measured to ensure optimal performance of the Chinook fleet?
Effectiveness will likely be measured through key performance indicators (KPIs) related to blade reliability, turnaround time for maintenance, and reduction in component failures. The Defense Logistics Agency should establish clear metrics and conduct regular performance reviews to ensure the contractor meets or exceeds contractual obligations and maintains the Chinook's operational readiness.
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: $23,055,588
Exercised Options: $23,055,588
Current Obligation: $23,055,588
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: 2025-11-25
Current End Date: 2028-07-31
Potential End Date: 2028-07-31 12:07:00
Last Modified: 2025-12-04
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