DoD awards Boeing $87.3M for 2 CH-47F aircraft, impacting Aircraft Engine Manufacturing sector
Contract Overview
Contract Amount: $87,290,179 ($87.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-09-30
End Date: 2025-05-30
Contract Duration: 973 days
Daily Burn Rate: $89.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: PROCUREMENT OF 2 CLOCK 2 CH-47F AIRCRAFT
Place of Performance
Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078
Plain-Language Summary
Department of Defense obligated $87.3 million to THE BOEING COMPANY for work described as: PROCUREMENT OF 2 CLOCK 2 CH-47F AIRCRAFT Key points: 1. High value contract for specialized aircraft. 2. Sole-source award to Boeing, limiting competition. 3. Potential risk in lack of competitive pricing. 4. Significant impact on the Aircraft Engine and Parts Manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $87.3M for two CH-47F aircraft suggests a high per-unit cost. Without competitive bids, it's difficult to assess if this price is optimal compared to potential market alternatives or previous procurements.
Cost Per Unit: $43.65M per aircraft
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This lack of competition may hinder price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: Taxpayers may bear a higher cost due to the absence of competitive bidding, as the government did not explore potentially lower prices from other manufacturers.
Public Impact
Enhances military aviation capabilities with advanced CH-47F helicopters. Supports a major defense contractor, potentially impacting jobs and industry. Procurement of specialized military hardware represents significant taxpayer investment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- High per-unit cost requires justification.
- Long contract duration (973 days) increases risk exposure.
Positive Signals
- Acquisition of critical military assets.
- Supports established defense industrial base.
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a critical component of the defense industrial base. Spending benchmarks for similar specialized aircraft procurements would be necessary for a full comparison.
Small Business Impact
The contract was 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.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is overseeing this procurement. Robust oversight is crucial to ensure cost control and delivery of quality aircraft, especially in sole-source situations.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- High per-unit cost requires strong justification.
- Long contract duration increases risk of cost overruns or delays.
- Dependence on a single supplier for critical assets.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $87.3 million to THE BOEING COMPANY. PROCUREMENT OF 2 CLOCK 2 CH-47F AIRCRAFT
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $87.3 million.
What is the period of performance?
Start: 2022-09-30. End: 2025-05-30.
What is the justification for the sole-source award, and has a market research been conducted to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities or limited sources. Without detailed documentation, it's difficult to ascertain the specific reasons. A thorough market research report is essential to validate that the negotiated price is fair and reasonable, especially when competition is absent, to protect taxpayer interests.
How does the per-unit cost of these CH-47F aircraft compare to historical procurements or similar aircraft from other nations?
Comparing the per-unit cost of $43.65M requires access to historical procurement data for the CH-47F and pricing for comparable heavy-lift helicopters. Factors like configuration, upgrades, and economic conditions influence price. Benchmarking against similar platforms is vital to assess value for money and identify potential cost savings.
What are the performance metrics and delivery schedules, and what penalties or incentives are in place to ensure timely and effective delivery?
The contract specifies a fixed-price incentive (FPI) type, which includes cost controls and potential bonuses or penalties tied to performance. Detailed performance metrics and delivery milestones are critical. The agency must actively monitor progress against these targets to ensure the aircraft are delivered on time and meet all specifications, maximizing the return on taxpayer investment.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 100 S STEWART AVE, RIDLEY PARK, PA, 19078
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: $87,290,179
Exercised Options: $87,290,179
Current Obligation: $87,290,179
Subaward Activity
Number of Subawards: 74
Total Subaward Amount: $7,356,828
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ21D0094
IDV Type: IDC
Timeline
Start Date: 2022-09-30
Current End Date: 2025-05-30
Potential End Date: 2025-05-30 00:00:00
Last Modified: 2026-01-12
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