DoD Awards Boeing $520.6M for CH-47 Aircraft Manufacturing, Delivery Order Issued
Contract Overview
Contract Amount: $520,594,871 ($520.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-12-23
End Date: 2026-12-30
Contract Duration: 1,468 days
Daily Burn Rate: $354.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CH-47 AIRCRAFT
Place of Performance
Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078
Plain-Language Summary
Department of Defense obligated $520.6 million to THE BOEING COMPANY for work described as: CH-47 AIRCRAFT Key points: 1. Significant contract value for aircraft manufacturing. 2. Sole-source award to Boeing raises competition concerns. 3. Long contract duration (2026) impacts long-term value assessment. 4. Defense sector spending on aircraft is substantial.
Value Assessment
Rating: fair
The contract value of $520.6 million for CH-47 aircraft manufacturing is substantial. Benchmarking against similar large-scale aircraft production contracts is difficult without more specific details on the scope and components included in this delivery order.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. The lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition in this sole-source award means taxpayers may not be receiving the best possible price for these aircraft.
Public Impact
Direct impact on military readiness and operational capabilities. Supports jobs within the aerospace manufacturing sector. Potential for cost overruns due to lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Long contract duration.
- Lack of detailed cost breakdown.
Positive Signals
- Essential aircraft for defense operations.
- Award to established manufacturer.
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is critical for national security, but often involves high costs and complex procurement processes.
Small Business Impact
The contract data indicates no specific set-aside for small businesses. Large sole-source awards like this often bypass opportunities for small business participation unless subcontracting is mandated.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. However, the sole-source nature of the award warrants close scrutiny to ensure fair pricing and efficient use of funds.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price inflation
- Limited transparency on cost breakdown
- Long contract duration
Tags
aircraft-manufacturing, department-of-defense, pa, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $520.6 million to THE BOEING COMPANY. CH-47 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 $520.6 million.
What is the period of performance?
Start: 2022-12-23. End: 2026-12-30.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, critical national security needs, or a lack of viable alternatives. Agencies must still conduct a price reasonableness analysis, often comparing to historical data or independent cost estimates, to ensure taxpayer funds are used efficiently despite the absence of competitive bidding.
How does the per-unit cost of these CH-47 aircraft compare to previous contracts or similar aircraft?
Without specific per-unit cost data or access to historical contract information, a direct comparison is not possible. The provided data only shows the total award amount. A detailed analysis would require breaking down the total value by the number of units procured and comparing it to prior acquisitions or competitor pricing for similar capabilities.
What are the long-term implications of this sole-source award on future helicopter procurement strategies?
Sole-source awards can set precedents and potentially reduce the incentive for manufacturers to compete aggressively in the future if they anticipate similar non-competitive awards. It may also limit the government's ability to explore innovative solutions or cost-saving measures that could arise from a competitive bidding process.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
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: $520,594,871
Exercised Options: $520,594,871
Current Obligation: $520,594,871
Subaward Activity
Number of Subawards: 361
Total Subaward Amount: $187,726,270
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ18D0082
IDV Type: IDC
Timeline
Start Date: 2022-12-23
Current End Date: 2026-12-30
Potential End Date: 2026-12-30 00:00:00
Last Modified: 2025-12-15
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