DoD Awards $28M Boeing Contract for AH-64 Apache Helicopter Field Support
Contract Overview
Contract Amount: $27,984,775 ($28.0M)
Contractor: Boeing Aerospace Operations, Inc.
Awarding Agency: Department of Defense
Start Date: 2015-07-01
End Date: 2020-12-31
Contract Duration: 2,010 days
Daily Burn Rate: $13.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AWARD CONTRACT FOR CONTRACTOR FIELD SERVICE REPRESENTATIVE (CFSR) FOR SUPPORT OF THE AH64 APACHE HELICOPTER.
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $28.0 million to BOEING AEROSPACE OPERATIONS, INC. for work described as: AWARD CONTRACT FOR CONTRACTOR FIELD SERVICE REPRESENTATIVE (CFSR) FOR SUPPORT OF THE AH64 APACHE HELICOPTER. Key points: 1. Contract awarded to Boeing Aerospace Operations, Inc. for essential field service representative support. 2. Significant contract value of $27.98 million over a 5-year period. 3. Sole-source award raises questions about competition and potential price discovery. 4. Engineering services sector, specifically for defense aviation support.
Value Assessment
Rating: fair
The contract value of $27.98 million for 5 years of support appears substantial. Benchmarking against similar long-term, specialized support contracts for complex aircraft systems is needed to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Boeing. This limits price discovery and may result in higher costs compared to a competitive process.
Taxpayer Impact: The lack of competition for this significant contract could lead to taxpayers potentially overpaying for the required support services.
Public Impact
Ensures continued operational readiness of the AH-64 Apache helicopter fleet. Supports critical maintenance and technical expertise for a key military asset. Impacts the efficiency and effectiveness of Army aviation operations. Boeing's continued role as the sole provider of this specific support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for higher costs due to lack of bidding.
- Long-term contract duration.
Positive Signals
- Essential support for critical defense asset.
- Experienced contractor providing specialized services.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense aviation. Spending benchmarks for contractor field service representatives on major weapon systems can vary widely based on complexity and duration.
Small Business Impact
The awardee, Boeing Aerospace Operations, Inc., is a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific contract.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and necessity. Robust oversight is needed to confirm the value and performance delivered by Boeing.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Contractor lock-in
- Long-term dependency on a single provider
Tags
engineering-services, department-of-defense, ok, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.0 million to BOEING AEROSPACE OPERATIONS, INC.. AWARD CONTRACT FOR CONTRACTOR FIELD SERVICE REPRESENTATIVE (CFSR) FOR SUPPORT OF THE AH64 APACHE HELICOPTER.
Who is the contractor on this award?
The obligated recipient is BOEING AEROSPACE OPERATIONS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $28.0 million.
What is the period of performance?
Start: 2015-07-01. End: 2020-12-31.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or lack of viable alternatives. Agencies must still conduct market research and price analyses to ensure the price is fair and reasonable, even without competition. Documentation of these efforts is crucial for accountability.
How does the cost of this sole-source contract compare to potential costs if it had been competitively bid?
Without a competitive bidding process, it is difficult to definitively state the cost difference. However, sole-source contracts often carry a price premium due to the absence of market pressure. A thorough cost-benefit analysis and comparison with similar competitively awarded contracts, if available, would be necessary to estimate the potential savings.
What performance metrics are in place to ensure the effectiveness of Boeing's field service representatives for the AH-64 Apache helicopter?
Effective performance management requires clearly defined metrics tied to contract objectives, such as response times, technical resolution rates, aircraft availability improvements, and customer satisfaction. Regular performance reviews and reporting mechanisms should be established to track progress and address any deficiencies promptly.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W58RGZ14R0016
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Boeing Company
Address: 6001 S AIR DEPOT BLVD, OKLAHOMA CITY, OK, 73135
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: $29,872,361
Exercised Options: $27,984,775
Current Obligation: $27,984,775
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-07-01
Current End Date: 2020-12-31
Potential End Date: 2020-12-31 12:12:00
Last Modified: 2025-09-25
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