Boeing awarded $58M for Apache Longbow Crew Trainers, a sole-source contract with firm fixed pricing

Contract Overview

Contract Amount: $58,088,197 ($58.1M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2013-09-09

End Date: 2019-03-15

Contract Duration: 2,013 days

Daily Burn Rate: $28.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ACQUISITION OF LONGBOW CREW TRAINERS (LCTS) FOR THE APACHE PROGRAM.

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $58.1 million to THE BOEING COMPANY for work described as: ACQUISITION OF LONGBOW CREW TRAINERS (LCTS) FOR THE APACHE PROGRAM. Key points: 1. The contract value of $58.1 million for Longbow Crew Trainers represents a significant investment in aviation training technology. 2. As a sole-source award, the absence of competition may limit price negotiation advantages for the government. 3. The firm fixed-price contract structure shifts cost overrun risks to the contractor, providing budget certainty. 4. This acquisition supports the Apache program, indicating a focus on maintaining and enhancing the operational readiness of attack helicopters. 5. The contract duration spans over five years, suggesting a long-term need for these training systems. 6. The specific nature of the trainers implies a specialized technology requiring unique manufacturing capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source trainer acquisitions. However, the firm fixed-price structure is a positive indicator for cost control. The total award of $58.1 million over approximately five years suggests a substantial per-unit cost, which warrants scrutiny to ensure it aligns with the complexity and technological sophistication of the Longbow Crew Trainers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means the government did not benefit from a bidding process that could drive down prices through market forces.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without alternative offers, the government's negotiating position is weakened, potentially leading to higher costs than if multiple vendors had vied for the contract.

Public Impact

The primary beneficiaries are the U.S. Army aviation units operating the Apache helicopter, who will receive advanced training capabilities. The contract delivers specialized Longbow Crew Trainers, enhancing pilot and crew proficiency in complex combat scenarios. The geographic impact is primarily centered around the contractor's facilities and the Army bases where the trainers will be deployed. Workforce implications include specialized engineering, manufacturing, and technical support roles at the contractor's site.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing advantages.
Potential for higher costs due to lack of bidding.
Specialized nature of trainers may create vendor lock-in.

Positive Signals

Firm fixed-price contract provides budget certainty.
Supports critical training for Apache helicopter crews.
Long contract duration indicates sustained need and potential for follow-on work.

Sector Analysis

The aerospace and defense sector is characterized by high technological barriers to entry and significant government investment. Contracts for specialized training systems like the Longbow Crew Trainers are crucial for maintaining the operational readiness of advanced military platforms. The market for such systems is often dominated by a few key players due to the proprietary nature of the technology and the stringent qualification requirements. Spending in this sub-sector is driven by modernization efforts and the need for realistic simulation environments.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss': false flag suggests no specific subcontracting goals for small businesses were mandated within this award. This means that opportunities for small businesses to participate in fulfilling this contract may be limited, and their inclusion would likely depend on the prime contractor's voluntary subcontracting efforts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a sole-source award, the justification for this procurement method would be subject to review. Transparency is generally maintained through contract award databases, though detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Apache Attack Helicopter Program
Aviation Training Systems
Simulation and Training Equipment
Longbow Fire Control Radar Systems

Risk Flags

Sole-source award may limit price competition.
Potential for higher costs without competitive bidding.
Contractor lock-in risk due to specialized technology.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.1 million to THE BOEING COMPANY. ACQUISITION OF LONGBOW CREW TRAINERS (LCTS) FOR THE APACHE PROGRAM.

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 $58.1 million.

What is the period of performance?

Start: 2013-09-09. End: 2019-03-15.

What is the historical spending trend for Longbow Crew Trainers or similar aviation training systems within the Department of Defense?

Analyzing historical spending on Longbow Crew Trainers (LCTs) or analogous aviation training systems reveals a consistent, albeit fluctuating, investment pattern by the Department of Defense (DoD). While specific data for LCTs prior to this $58.1 million award is not detailed here, the broader category of "Aircraft Combat Electronic Warfare Systems" and "Flight Simulators" has seen multi-billion dollar annual expenditures. For instance, in fiscal years preceding 2013, the Army alone allocated hundreds of millions annually towards aviation modernization and training platforms. The trend generally indicates a sustained commitment to advanced simulation technologies to maintain pilot proficiency and reduce operational risks associated with live training. Factors influencing spending include new platform introductions, upgrades to existing systems, and evolving threat environments requiring more sophisticated training scenarios. The sole-source nature of this particular award suggests a mature technology or a unique capability where competition has diminished over time.

How does the per-unit cost of these Longbow Crew Trainers compare to industry benchmarks or previous acquisitions?

Determining the precise per-unit cost for these Longbow Crew Trainers (LCTs) is not feasible with the provided data, as the total award amount ($58.1 million) and the number of units are not specified. However, given the complexity and specialized nature of advanced aviation simulators, particularly those integrated with weapon systems like the Longbow, per-unit costs can range significantly from hundreds of thousands to several million dollars. Without knowing the quantity procured, a direct comparison to industry benchmarks or previous acquisitions is speculative. Generally, sole-source contracts, like this one awarded to The Boeing Company, may not reflect the most competitive pricing. If this contract involved a substantial number of trainers, the per-unit cost would warrant careful examination against any available market research or data from similar, potentially competed, training system procurements to ensure value for money.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of these Longbow Crew Trainers?

The effectiveness of the Longbow Crew Trainers (LCTs) is likely measured through a combination of technical performance and operational impact KPIs. Technical KPIs would focus on the fidelity of the simulation, including the accuracy of the virtual environment, the responsiveness of the controls, the realism of the simulated weapon systems (including the Longbow radar), and the system's reliability and uptime. Operational KPIs would assess how well the trainers contribute to pilot and crew readiness. This could include metrics such as the number of training hours logged, the improvement in mission success rates in simulated scenarios, the reduction in training-related accidents or incidents, and the ability of crews to effectively employ the Apache's capabilities after training. User feedback from pilots and instructors would also be a crucial qualitative measure of the trainers' effectiveness in preparing crews for real-world missions.

What is the track record of The Boeing Company in delivering complex aviation training systems, particularly for the Apache program?

The Boeing Company has a long and extensive track record in developing and delivering complex aviation systems, including significant contributions to the Apache helicopter program. Boeing is the prime contractor for the AH-64 Apache, responsible for its production, sustainment, and upgrades. This deep involvement provides them with intimate knowledge of the aircraft's systems, including the Longbow fire control radar. Their experience extends to developing sophisticated training solutions, such as simulators and virtual training environments, designed to enhance pilot and crew proficiency. Past performance on similar programs, including the integration of advanced avionics and weapon systems into training platforms, suggests a strong capability to meet the requirements for the Longbow Crew Trainers. While specific details of past trainer deliveries are not provided, Boeing's overall position as a major defense contractor with decades of experience in military aviation implies a robust capacity for this type of specialized acquisition.

Are there any identified risks associated with the sole-source acquisition of these trainers, and how are they being mitigated?

The primary risk associated with a sole-source acquisition is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may not achieve the most favorable price. Another risk is vendor lock-in, where the reliance on a single supplier for specialized equipment can create dependencies and limit future flexibility. Mitigation strategies typically involve rigorous price analysis, negotiation, and potentially establishing robust performance-based contract terms to ensure value. The government may also conduct market research to confirm that a sole-source award is indeed justified and that no viable alternatives exist. Furthermore, establishing clear performance standards and ensuring strong government oversight can help mitigate risks related to quality and delivery timelines, even in a sole-source scenario.

What is the strategic importance of the Longbow Crew Trainers to the overall readiness and capability of the U.S. Army's Apache fleet?

The Longbow Crew Trainers (LCTs) are strategically vital to the readiness and capability of the U.S. Army's Apache fleet, particularly those equipped with the AN/APG-78 Longbow Fire Control Radar. These trainers provide a high-fidelity simulation environment that allows crews to practice complex mission scenarios, including target acquisition, engagement, and navigation, under realistic conditions without expending live ordnance or risking valuable aircraft. This capability is crucial for maintaining proficiency with the advanced Longbow system, which significantly enhances the Apache's ability to detect, classify, prioritize, and engage targets in adverse weather and battlefield conditions. By enabling extensive training in a safe and cost-effective manner, the LCTs directly contribute to the operational effectiveness of Apache units, ensuring they are prepared to meet diverse mission requirements and maintain air superiority in complex threat environments.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ12R0340

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134

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: $58,088,197

Exercised Options: $58,088,197

Current Obligation: $58,088,197

Subaward Activity

Number of Subawards: 94

Total Subaward Amount: $16,521,069

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline