DoD Awards Boeing $37M for Apache Helicopter Remanufacturing, Full and Open Competition
Contract Overview
Contract Amount: $37,015,187 ($37.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2010-05-13
End Date: 2014-12-14
Contract Duration: 1,676 days
Daily Burn Rate: $22.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: REMAN 3 ISRAEL AH-64HA TO AH-64D-I
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85215
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $37.0 million to THE BOEING COMPANY for work described as: REMAN 3 ISRAEL AH-64HA TO AH-64D-I Key points: 1. Significant investment in advanced military aircraft capabilities. 2. Boeing, a major defense contractor, secured this award. 3. Risk associated with complex aircraft upgrades and long-term sustainment. 4. Spending falls within the broad 'Aircraft Manufacturing' sector.
Value Assessment
Rating: fair
The contract value of $37 million for remanufacturing two AH-64 Apache helicopters appears reasonable given the complexity of upgrading to the AH-64D-I standard. Benchmarking against similar complex aircraft modernization programs would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that should have driven price discovery. The use of a definitive contract indicates a clear scope of work.
Taxpayer Impact: Taxpayer funds are being used for critical defense modernization, aiming to enhance the capabilities of the U.S. Army's helicopter fleet.
Public Impact
Enhances the combat effectiveness of the U.S. Army's Apache helicopter fleet. Supports advanced aerospace manufacturing jobs and technological development. Ensures continued operational readiness of key military assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex remanufacturing.
- Long-term sustainment costs not fully detailed.
- Dependence on a single prime contractor for critical upgrades.
Positive Signals
- Awarded through full and open competition.
- Utilizes a firm-fixed-price contract type.
- Modernizes existing, proven platforms.
Sector Analysis
This contract falls under the Aircraft Manufacturing sector, a critical component of the defense industrial base. Spending on aircraft modernization is substantial, with remanufacturing programs often representing a cost-effective alternative to new procurement.
Small Business Impact
While the prime contractor is The Boeing Company, the extent of small business participation in this specific contract is not detailed in the provided data. Subcontracting opportunities may exist within the broader aerospace supply chain.
Oversight & Accountability
The Department of the Army, through its contracting and program management offices, is responsible for overseeing this contract. Robust oversight is crucial to ensure adherence to schedule, cost, and performance specifications.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Complexity of aircraft remanufacturing.
- Potential for schedule delays.
- Long-term sustainment and upgrade path.
- Reliance on specific technological upgrades.
Tags
aircraft-manufacturing, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.0 million to THE BOEING COMPANY. REMAN 3 ISRAEL AH-64HA TO AH-64D-I
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 Army).
What is the total obligated amount?
The obligated amount is $37.0 million.
What is the period of performance?
Start: 2010-05-13. End: 2014-12-14.
What is the projected increase in operational capability or lifespan for the AH-64D-I compared to the previous AH-64HA variant?
The AH-64D-I upgrade typically incorporates enhanced sensors, improved avionics, and potentially upgraded weapon systems, leading to increased situational awareness, targeting accuracy, and overall combat effectiveness. This modernization extends the operational lifespan of the airframe, delaying the need for costly new platform development and ensuring the Apache remains a relevant and potent attack helicopter.
What are the key performance metrics used to evaluate the success of this remanufacturing effort?
Key performance metrics likely include adherence to the firm-fixed-price budget, on-time delivery of the remanufactured aircraft, and successful completion of all required testing and validation. Post-delivery, performance would be assessed through operational readiness rates, mission capable statistics, and feedback from flight crews regarding the enhanced capabilities and reliability of the upgraded systems.
How does the cost of remanufacturing compare to acquiring new AH-64E aircraft?
Remanufacturing is generally considered a more cost-effective approach than procuring entirely new aircraft, especially for platforms like the AH-64 that have a robust airframe and significant upgrade potential. While the exact savings depend on the scope of upgrades and current market prices for new aircraft, remanufacturing allows the DoD to leverage existing assets, reducing development costs and lead times associated with brand-new platforms.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W58RGZ10R0300
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5000 E MCDOWELL RD, MESA, AZ, 85215
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,015,187
Exercised Options: $37,015,187
Current Obligation: $37,015,187
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-05-13
Current End Date: 2014-12-14
Potential End Date: 2014-12-14 12:12:00
Last Modified: 2016-08-18
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