Boeing Awarded $26M for Apache Support in Kuwait, Engineering Services Contract
Contract Overview
Contract Amount: $26,035,636 ($26.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-01-01
End Date: 2025-12-31
Contract Duration: 1,460 days
Daily Burn Rate: $17.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE INTERNATIONAL APACHE PROJECT OFFICE REQUESTS ISSUANCE OF A NEW TASK ORDER TO W58RGZ-20-D-0005 TO PROCURE IN SUPPORT OF KUWAIT. THIS REQUEST IS REVISED TO REMOVE THE FLEX AND O&A CLINS FROM THE FFP PWD AND ADD THEM TO THE CPFF PWD.
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85215
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $26.0 million to THE BOEING COMPANY for work described as: THE INTERNATIONAL APACHE PROJECT OFFICE REQUESTS ISSUANCE OF A NEW TASK ORDER TO W58RGZ-20-D-0005 TO PROCURE IN SUPPORT OF KUWAIT. THIS REQUEST IS REVISED TO REMOVE THE FLEX AND O&A CLINS FROM THE FFP PWD AND ADD THEM TO THE CPFF PWD. Key points: 1. Contract awarded to The Boeing Company for Apache support in Kuwait. 2. Services include engineering and technical support. 3. Contract duration spans from January 2022 to December 2025. 4. This is a delivery order under an existing contract. 5. The contract is not available for competition.
Value Assessment
Rating: fair
The contract value is $26,035,636.18. Without comparable contracts or detailed cost breakdowns, assessing the pricing against similar services is difficult. The firm-fixed-price structure suggests a defined scope, but the value relative to the services provided requires further scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition for this significant contract value may result in a less favorable price for taxpayers compared to a competitively awarded contract.
Public Impact
Supports critical Apache helicopter operations for Kuwait. Ensures continued readiness and maintenance of military assets. Potential for follow-on work or expanded support requirements. Impacts the defense industrial base and specialized engineering services. Funds allocated for foreign military support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns in sole-source contracts
- Limited transparency on specific service deliverables
Positive Signals
- Supports a key ally's defense capabilities
- Long-term contract provides stability for services
- Utilizes existing contract vehicle
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector critical for defense readiness and complex system support. Spending in this sector is substantial, and competitive bidding is typically encouraged to ensure value for money.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of small business participation in this specific task order, suggesting a missed opportunity for small business subcontracting.
Oversight & Accountability
The contract is a delivery order under an existing indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on the performance of The Boeing Company against the task order requirements and adherence to the contract terms.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition
- Potential for higher costs due to lack of competition
- Limited transparency on specific service details
- No clear small business participation outlined
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 $26.0 million to THE BOEING COMPANY. THE INTERNATIONAL APACHE PROJECT OFFICE REQUESTS ISSUANCE OF A NEW TASK ORDER TO W58RGZ-20-D-0005 TO PROCURE IN SUPPORT OF KUWAIT. THIS REQUEST IS REVISED TO REMOVE THE FLEX AND O&A CLINS FROM THE FFP PWD AND ADD THEM TO THE CPFF PWD.
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 $26.0 million.
What is the period of performance?
Start: 2022-01-01. End: 2025-12-31.
What specific engineering services are included in this task order, and how do they contribute to the operational readiness of Kuwait's Apache fleet?
The task order likely encompasses a range of engineering services such as technical support, maintenance planning, system upgrades, and troubleshooting for the Apache helicopters operated by Kuwait. These services are crucial for ensuring the aircraft are mission-ready, safe to operate, and effectively maintained, thereby directly contributing to the operational readiness and defense capabilities of the Kuwaiti armed forces.
Given the sole-source nature of this award, what mechanisms are in place to ensure the government is receiving fair and reasonable pricing for these engineering services?
While sole-source awards limit competitive pressure, the government typically employs mechanisms like cost realism analysis, price negotiation, and reliance on historical pricing data or independent government cost estimates. Contracting officers must justify the fair and reasonable price determination, often requiring detailed proposals from the contractor and thorough review by government cost analysts.
How does this contract align with broader U.S. foreign military sales and security cooperation objectives in the Middle East?
This contract supports U.S. foreign military sales and security cooperation by providing essential sustainment and engineering services for a key platform operated by a regional partner. Ensuring the operational readiness of Kuwait's Apache fleet enhances regional stability and interoperability with U.S. forces, aligning with broader U.S. strategic interests in the Middle East.
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: $26,035,636
Exercised Options: $26,035,636
Current Obligation: $26,035,636
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $399,863
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: 2022-01-01
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 12:12:00
Last Modified: 2026-01-12
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