Follow-on Apache helicopter maintenance contract awarded to Boeing for $22.6M, continuing support for Qatar's armed forces
Contract Overview
Contract Amount: $22,605,764 ($22.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-08-01
End Date: 2026-07-31
Contract Duration: 729 days
Daily Burn Rate: $31.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 1-YEAR NTE BASE AWARD OF A UCA TO PROVIDE MAINTENANCE AUGMENTATION TEAM (MAT) SERVICES FOR THE QATAR ARMED FORCES (QAF) CONSISTING OF 24 AH-64E APACHE AIRCRAFT. THIS IS A FOLLOW-ON EFFORT TO CONTRACT W58RGZ-19-C-0008.
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85215
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $22.6 million to THE BOEING COMPANY for work described as: 1-YEAR NTE BASE AWARD OF A UCA TO PROVIDE MAINTENANCE AUGMENTATION TEAM (MAT) SERVICES FOR THE QATAR ARMED FORCES (QAF) CONSISTING OF 24 AH-64E APACHE AIRCRAFT. THIS IS A FOLLOW-ON EFFORT TO CONTRACT W58RGZ-19-C-0008. Key points: 1. Contract provides essential maintenance augmentation for 24 AH-64E Apache aircraft, ensuring operational readiness. 2. This is a follow-on effort, indicating a continued need and established relationship for these specialized services. 3. The contract type is Cost Plus Fixed Fee, which allows for flexibility but requires careful cost oversight. 4. Services are being procured for the Qatar Armed Forces, highlighting international military cooperation and support. 5. The base award covers a 1-year period, with potential for future extensions based on performance and need. 6. The contractor, The Boeing Company, has a significant track record in aerospace and defense manufacturing and support.
Value Assessment
Rating: fair
The contract's value of $22.6 million for a one-year base period of maintenance augmentation services for 24 Apache aircraft appears to be within a reasonable range for specialized military support. However, without detailed breakdowns of labor rates, material costs, and overhead, a precise value-for-money assessment is challenging. Benchmarking against similar international military support contracts for advanced aircraft like the AH-64E would provide a clearer picture of cost-effectiveness. The Cost Plus Fixed Fee (CPFF) structure necessitates diligent oversight to ensure costs remain controlled and justified.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is often taken when a specific contractor possesses unique capabilities, proprietary knowledge, or when there is a need for continuity with an existing support provider. While it ensures specialized expertise, it limits the potential for competitive pricing and may result in higher costs for the government compared to a fully competed scenario.
Taxpayer Impact: Sole-source awards can limit taxpayer value by foregoing potential cost savings that competition might bring. It also raises questions about whether alternative solutions or providers were adequately explored.
Public Impact
The primary beneficiaries are the Qatar Armed Forces, who receive critical support for their AH-64E Apache helicopter fleet. The services delivered include maintenance augmentation, ensuring the operational readiness and effectiveness of these advanced aircraft. This contract supports U.S. foreign military sales and defense cooperation objectives in the Middle East. The contract supports specialized technical and maintenance personnel, potentially including U.S.-based or deployed personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure, potentially leading to higher costs.
- Cost Plus Fixed Fee (CPFF) contract type requires robust oversight to manage costs effectively.
- Follow-on nature of the contract may indicate a lack of market research for alternative providers.
- Specific performance metrics and success criteria are not detailed in the provided summary.
Positive Signals
- Contract ensures continued operational readiness of critical military assets for an allied nation.
- The Boeing Company has extensive experience with the AH-64E platform, suggesting high-quality service delivery.
- Follow-on effort indicates a successful prior relationship and established trust.
- Contract supports U.S. foreign policy and defense export objectives.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aviation maintenance and support services. The global market for military aircraft maintenance, repair, and overhaul (MRO) is substantial, driven by the need to maintain aging fleets and introduce new advanced platforms. Spending in this area is often characterized by long-term support agreements, sole-source or limited competition due to specialized knowledge requirements, and significant contract values. This specific contract for Apache helicopter support aligns with broader defense spending trends aimed at maintaining allied military capabilities.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award to a large prime contractor, The Boeing Company, it is unlikely to involve significant subcontracting opportunities for small businesses directly related to the core maintenance augmentation services, unless Boeing chooses to subcontract specific components or support functions. The primary focus appears to be on specialized, high-level technical support rather than broad-based procurement.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract would primarily fall under the Department of the Army's contracting and program management offices. Given the international nature and the specific platform, specialized oversight teams are likely involved. Transparency is typically managed through contract reporting mechanisms and performance reviews. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse, as with most Department of Defense contracts.
Related Government Programs
- Foreign Military Sales (FMS) Program
- Apache Helicopter Sustainment Programs
- Aviation Maintenance and Repair Services
- International Defense Cooperation Agreements
Risk Flags
- Sole-source award
- Cost-plus contract type
- International military support
Tags
defense, department-of-the-army, international, maintenance, aviation, apache-helicopter, cost-plus-fixed-fee, definitive-contract, sole-source, boeing, qatar, engineering-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.6 million to THE BOEING COMPANY. 1-YEAR NTE BASE AWARD OF A UCA TO PROVIDE MAINTENANCE AUGMENTATION TEAM (MAT) SERVICES FOR THE QATAR ARMED FORCES (QAF) CONSISTING OF 24 AH-64E APACHE AIRCRAFT. THIS IS A FOLLOW-ON EFFORT TO CONTRACT W58RGZ-19-C-0008.
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 $22.6 million.
What is the period of performance?
Start: 2024-08-01. End: 2026-07-31.
What is The Boeing Company's track record with providing maintenance augmentation services for the AH-64E Apache platform, particularly in international contexts?
The Boeing Company is the original manufacturer of the AH-64 Apache helicopter and has a long-standing history of providing sustainment, maintenance, and upgrade services for this platform globally. Their track record includes numerous contracts with the U.S. Army and various international partners operating the AH-64E variant. This specific contract is a follow-on to a previous effort (W58RGZ-19-C-0008), suggesting a demonstrated ability to meet the requirements for the Qatar Armed Forces. Boeing's extensive experience encompasses logistics, technical support, training, and field service representative (FSR) deployment, which are crucial for maintenance augmentation teams. Their deep familiarity with the aircraft's systems and potential issues positions them as a key provider for such specialized services.
How does the $22.6 million base award compare to similar international contracts for AH-64E maintenance support?
Benchmarking the $22.6 million base award for a one-year period requires detailed comparison with similar international contracts for AH-64E maintenance augmentation. Factors influencing cost include the number of aircraft supported (24 in this case), the scope of services (maintenance augmentation), the duration, and the specific labor rates and overhead applied. Contracts for advanced military platforms often involve significant costs due to the specialized skills, certifications, and proprietary knowledge required. While $22.6 million for a year of support for 24 advanced attack helicopters is substantial, it may be competitive when considering the complexity and the sole-source nature. A comprehensive analysis would involve comparing the per-aircraft cost and the cost per service hour against other FMS contracts or direct commercial sales for similar support packages, adjusted for regional economic factors and specific contract terms.
What are the primary risks associated with this sole-source Cost Plus Fixed Fee (CPFF) contract, and how are they being mitigated?
The primary risks associated with this sole-source CPFF contract include potential cost overruns and a lack of competitive pressure driving efficiency. Since the contract is sole-source, the government does not benefit from competitive bidding, which could lead to higher prices. The CPFF structure, while providing flexibility for evolving requirements, can incentivize the contractor to incur more costs to increase their fixed fee profit margin if not carefully managed. Mitigation strategies typically involve robust government oversight, including detailed review of incurred costs, performance monitoring against established metrics, and strong negotiation of the fixed fee. The follow-on nature suggests prior oversight was deemed adequate, but continuous vigilance is necessary. The government likely has mechanisms to audit costs and ensure the work performed aligns with the contract's objectives and necessity.
What is the expected program effectiveness and impact on the Qatar Armed Forces' operational capabilities?
The expected program effectiveness is high, as the contract aims to ensure the operational readiness of the Qatar Armed Forces' (QAF) fleet of 24 AH-64E Apache aircraft. Maintenance augmentation services provided by The Boeing Company are critical for addressing complex technical issues, performing scheduled and unscheduled maintenance, and ensuring the helicopters are mission-capable. This directly enhances the QAF's air combat power, reconnaissance capabilities, and overall defense posture. By maintaining these advanced platforms, the contract contributes to regional stability and strengthens the QAF's ability to meet its security objectives. The continuity provided by a follow-on contract suggests a commitment to sustained operational effectiveness for this key military asset.
How does this contract fit into the broader historical spending patterns for Apache helicopter support, both domestically and internationally?
This contract aligns with historical spending patterns for advanced military platforms like the AH-64 Apache, which consistently require significant investment in sustainment and support throughout their lifecycle. Both the U.S. Department of Defense and international partners allocate substantial budgets to ensure the operational readiness of their Apache fleets. Spending typically includes contractor logistics support, spare parts, depot maintenance, upgrades, and field service representatives. International sales and support contracts, like this one for Qatar, represent a significant portion of this spending, reflecting U.S. foreign military sales objectives and the global reliance on this capable attack helicopter. The value of $22.6 million for a one-year base period is consistent with the high costs associated with maintaining such sophisticated aviation assets.
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
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 5000 E MCDOWELL RD, 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: $37,014,244
Exercised Options: $22,605,764
Current Obligation: $22,605,764
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-08-01
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 12:07:00
Last Modified: 2025-10-10
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