DoD Awards $22.3M for AH-64 Apache Airframe FMS to Boeing, Facing Limited Competition
Contract Overview
Contract Amount: $22,335,090 ($22.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-11-01
End Date: 2026-08-31
Contract Duration: 2,129 days
Daily Burn Rate: $10.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AH-64 APACHE AIRFRAME FMS PPSS FOR THE INDONESIA FLEET, UNDER INDEFINITE DELIVERY/INDEFINITE QUANTITY (ID/IQ) CONTRACT, W58RGZ-20-D-0005.
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85215
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $22.3 million to THE BOEING COMPANY for work described as: AH-64 APACHE AIRFRAME FMS PPSS FOR THE INDONESIA FLEET, UNDER INDEFINITE DELIVERY/INDEFINITE QUANTITY (ID/IQ) CONTRACT, W58RGZ-20-D-0005. Key points: 1. The contract is for the Indonesia fleet's Apache airframes, indicating international military sales. 2. Boeing is the sole provider, raising concerns about competition and potential price inflation. 3. The indefinite delivery/indefinite quantity (ID/IQ) contract structure allows for flexibility but requires careful monitoring. 4. Engineering services are included, suggesting a comprehensive support package beyond just the airframe.
Value Assessment
Rating: fair
The total award is $22.3 million. Without specific per-unit pricing or comparison data for similar international sales of Apache airframes, a precise value assessment is difficult. However, the lack of competition is a significant factor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source or limited competition scenario, likely due to the specialized nature of the AH-64 Apache and Boeing's role as the manufacturer. This limits price discovery and negotiation leverage.
Taxpayer Impact: Taxpayer funds are being used for foreign military sales. The lack of competition may lead to higher costs than if multiple vendors were involved, impacting the overall value for money.
Public Impact
Supports U.S. foreign military sales objectives by providing essential defense equipment to allies. Ensures continued operational readiness for the Indonesian Air Force's Apache helicopter fleet. Contributes to the U.S. defense industrial base through contracts with major aerospace manufacturers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for price escalation due to sole-source nature
- Long-term contract duration requires ongoing oversight
Positive Signals
- Supports a key U.S. ally's defense capabilities
- Utilizes established platform (AH-64 Apache)
- Contract awarded to a major defense contractor
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on military aircraft components and support. Spending benchmarks in this sector are often high due to R&D, specialized materials, and complex manufacturing processes.
Small Business Impact
The contract is awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
The ID/IQ contract structure necessitates robust oversight to manage delivery orders, ensure fair pricing, and track performance. The Department of the Army's contracting activity suggests established oversight mechanisms are in place, but the limited competition aspect warrants particular attention.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpricing
- Dependency on a single supplier
- Long-term contract duration increases risk exposure
- International sales complexity
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 $22.3 million to THE BOEING COMPANY. AH-64 APACHE AIRFRAME FMS PPSS FOR THE INDONESIA FLEET, UNDER INDEFINITE DELIVERY/INDEFINITE QUANTITY (ID/IQ) CONTRACT, W58RGZ-20-D-0005.
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 $22.3 million.
What is the period of performance?
Start: 2020-11-01. End: 2026-08-31.
What is the specific justification for the 'NOT AVAILABLE FOR COMPETITION' status, and were alternative sourcing strategies considered?
The justification for 'NOT AVAILABLE FOR COMPETITION' typically stems from unique capabilities, proprietary technology, or existing platform integration where only one source can fulfill the requirement. For the AH-64 Apache, Boeing is the original equipment manufacturer and primary support provider. Alternative sourcing strategies, such as exploring licensed production or independent MRO providers, might have been considered but likely deemed less feasible or cost-effective for this specific foreign military sales requirement.
How does the per-unit cost of these Apache airframes compare to historical sales or sales to other allied nations?
Without specific per-unit cost data or access to comparable international sales records, a direct comparison is not possible. However, given the limited competition and the specialized nature of the AH-64 platform, costs are likely to be at the higher end. Benchmarking against previous FMS cases for similar platforms or against domestic procurements could provide some context, but proprietary pricing agreements often obscure direct comparisons.
What mechanisms are in place to ensure cost-effectiveness and prevent price creep over the life of this ID/IQ contract?
The ID/IQ contract structure itself allows for negotiation on each delivery order, providing some opportunity for price adjustments. However, the 'NOT AVAILABLE FOR COMPETITION' designation limits the leverage for aggressive price negotiation. Robust oversight by the Department of the Army, including regular reviews of Boeing's cost submissions and market research for comparable services, would be crucial to mitigate price creep and ensure value for taxpayer funds.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
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: $22,335,090
Exercised Options: $22,335,090
Current Obligation: $22,335,090
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $342,995
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ20D0005
IDV Type: IDC
Timeline
Start Date: 2020-11-01
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 12:08:00
Last Modified: 2025-08-01
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)