Boeing Awarded $55M for Army Aviation Support at Corpus Christi
Contract Overview
Contract Amount: $55,071,406 ($55.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-10-31
End Date: 2020-10-31
Contract Duration: 731 days
Daily Burn Rate: $75.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: EXECUTION OF PROGRAM YEAR 5 IN SUPPORT OF TECHNICAL, ENGINEERING, LOGISTICAL SERVICES AND SUPPLIES (TELSS), FOR CONTINUED SUPPORT TO CORPUS CHRISTI ARMY DEPOT (CCAD) IN THE OVERHAUL, REPAIR AND RECAPITALIZATION OF THE AH-64 AND H-47 WEAPON SYSTEMS AIRFRAME AND COMPONENT PARTS.
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85215
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $55.1 million to THE BOEING COMPANY for work described as: EXECUTION OF PROGRAM YEAR 5 IN SUPPORT OF TECHNICAL, ENGINEERING, LOGISTICAL SERVICES AND SUPPLIES (TELSS), FOR CONTINUED SUPPORT TO CORPUS CHRISTI ARMY DEPOT (CCAD) IN THE OVERHAUL, REPAIR AND RECAPITALIZATION OF THE AH-64 AND H-47 WEAPON SYSTEMS AIRFRAME AND COMPONENT PARTS. Key points: 1. Contract supports critical AH-64 and H-47 helicopter maintenance. 2. Sole-source award to Boeing raises questions about competition. 3. Fixed Price Incentive contract type aims to control costs. 4. Spending aligns with engineering services sector benchmarks.
Value Assessment
Rating: fair
The $55M award for two years of service appears reasonable for specialized aviation maintenance. However, without a competitive bid, it's difficult to definitively assess if this represents the best value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning no other vendors were considered. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in higher costs than if multiple vendors had bid on the services.
Public Impact
Ensures continued readiness of vital Army helicopter fleets. Supports specialized technical and engineering expertise for complex repairs. Maintains critical components and airframes for combat effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Lack of price transparency
- Potential for cost overruns with FPI contract
Positive Signals
- Supports critical defense assets
- Experienced contractor
- Fixed price incentive contract structure
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related maintenance and repair. Spending in this area is often driven by specific platform needs and contractor capabilities.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this sole-source award. This contract appears to be awarded directly to a large prime contractor.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the government obtained fair and reasonable pricing. Further oversight should confirm the necessity of a sole-source approach.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency in pricing
Tags
engineering-services, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.1 million to THE BOEING COMPANY. EXECUTION OF PROGRAM YEAR 5 IN SUPPORT OF TECHNICAL, ENGINEERING, LOGISTICAL SERVICES AND SUPPLIES (TELSS), FOR CONTINUED SUPPORT TO CORPUS CHRISTI ARMY DEPOT (CCAD) IN THE OVERHAUL, REPAIR AND RECAPITALIZATION OF THE AH-64 AND H-47 WEAPON SYSTEMS AIRFRAME AND COMPONENT PARTS.
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 $55.1 million.
What is the period of performance?
Start: 2018-10-31. End: 2020-10-31.
What is the justification for awarding this contract sole-source to The Boeing Company?
The justification for a sole-source award typically involves a determination that only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. A thorough review of the justification documentation is necessary to understand the specific reasons and ensure it aligns with federal procurement regulations.
How does the Fixed Price Incentive (FPI) contract structure mitigate risk for the government?
An FPI contract establishes a target cost, target profit, and a price ceiling. It incentivizes the contractor to control costs by sharing in any savings below the target cost, while also sharing in any cost overruns up to the ceiling. This structure aims to balance cost control with performance, providing the government with a degree of protection against excessive costs while encouraging efficiency.
What is the potential impact on AH-64 and H-47 readiness if this contract is not executed effectively?
Ineffective execution of this contract could significantly impact the readiness of the AH-64 Apache and H-47 Chinook helicopter fleets. Delays or subpar quality in overhaul, repair, and recapitalization could lead to reduced aircraft availability for training and combat operations, potentially compromising mission effectiveness and soldier safety.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $96,514,491
Exercised Options: $55,071,406
Current Obligation: $55,071,406
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $467,926
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ15D0060
IDV Type: IDC
Timeline
Start Date: 2018-10-31
Current End Date: 2020-10-31
Potential End Date: 2020-10-31 12:10:00
Last Modified: 2022-09-27
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