DoD Awards Boeing $88M for Apache Helicopter Maintenance Augmentation Services
Contract Overview
Contract Amount: $88,264,645 ($88.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-12-26
End Date: 2024-07-31
Contract Duration: 2,044 days
Daily Burn Rate: $43.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MAINTENANCE AUGMENTATION TEAM (MAT) SERVICES FOR A THREE (3) YEAR BASE AND TWO (2) ADDITIONAL ONE (1) YEAR OPTIONS IN SUPPORT OF THE QAF APACHE HELICOPTER FLEET CONSISTING OF 24 AH-64E
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85215
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $88.3 million to THE BOEING COMPANY for work described as: MAINTENANCE AUGMENTATION TEAM (MAT) SERVICES FOR A THREE (3) YEAR BASE AND TWO (2) ADDITIONAL ONE (1) YEAR OPTIONS IN SUPPORT OF THE QAF APACHE HELICOPTER FLEET CONSISTING OF 24 AH-64E Key points: 1. Contract awarded to sole incumbent, Boeing, for critical Apache helicopter fleet support. 2. Significant contract value of $88.3M over a potential 5-year period. 3. Lack of competition raises concerns about potential overpricing and limited innovation. 4. Engineering services sector, with a focus on defense aviation maintenance.
Value Assessment
Rating: questionable
The contract's firm-fixed-price structure aims for cost certainty. However, without competitive bidding, it's difficult to assess if the $88.3M price reflects fair market value compared to potential alternatives or previous contracts for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not available for competition, indicating a sole-source award to Boeing. This limits price discovery and may prevent the government from securing the best possible price or innovative solutions from other qualified vendors.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for these essential maintenance services, as there is no market pressure to drive down costs.
Public Impact
Ensures continued operational readiness of the AH-64E Apache helicopter fleet. Supports critical defense capabilities for the U.S. Army. Potential for higher costs due to sole-source nature impacts overall defense budget.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Ensures critical fleet readiness
- Experienced incumbent provider
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting complex defense aviation platforms. Spending benchmarks for similar specialized maintenance services can vary widely, but sole-source awards often deviate from competitive averages.
Small Business Impact
The contract data indicates that small businesses were not involved in this specific award, as it was a sole-source contract awarded directly to The Boeing Company.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure the pricing remains reasonable and the services provided meet all contractual requirements and performance standards.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for above-market pricing.
- Lack of transparency in price justification.
- Dependency on a single contractor.
- No small business participation noted.
Tags
engineering-services, department-of-defense, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $88.3 million to THE BOEING COMPANY. MAINTENANCE AUGMENTATION TEAM (MAT) SERVICES FOR A THREE (3) YEAR BASE AND TWO (2) ADDITIONAL ONE (1) YEAR OPTIONS IN SUPPORT OF THE QAF APACHE HELICOPTER FLEET CONSISTING OF 24 AH-64E
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 $88.3 million.
What is the period of performance?
Start: 2018-12-26. End: 2024-07-31.
What is the justification for awarding this contract sole-source, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or essential support for a specific platform where only one vendor can provide the required services. To ensure fair pricing, the government should conduct thorough price analyses, potentially using historical data, independent cost estimates, or benchmarking against similar sole-source contracts, even if competition is not feasible.
What are the risks associated with relying solely on Boeing for Apache helicopter maintenance augmentation?
The primary risks include potential price escalation due to the lack of competitive pressure, reduced incentive for Boeing to innovate or improve efficiency, and a dependency on a single supplier which could create vulnerabilities in the supply chain or service delivery. This also limits the government's ability to explore alternative solutions or technologies.
How does this contract contribute to the overall effectiveness and readiness of the Apache helicopter fleet?
This contract is crucial for maintaining the operational readiness and effectiveness of the AH-64E Apache fleet by providing essential augmentation services. Ensuring the helicopters are properly maintained and supported directly impacts the Army's ability to execute its missions, deploy effectively, and maintain air superiority.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W58RGZ17R0049
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5000 EAST MCDOWELL ROAD, MESA, AZ, 85215
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: $93,520,539
Exercised Options: $88,264,645
Current Obligation: $88,264,645
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $858,223
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-12-26
Current End Date: 2024-07-31
Potential End Date: 2024-07-31 12:07:00
Last Modified: 2024-04-30
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