DoD Awards $256M C-17 Beddown Infrastructure Facility Construction Contract to Boeing
Contract Overview
Contract Amount: $255,990,216 ($256.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2012-09-14
End Date: 2022-05-31
Contract Duration: 3,546 days
Daily Burn Rate: $72.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF IND001 - INDIA FMS - C-17 BEDDOWN INFRASTRUCTURE FACILITY CONSTRUCTION, HINDAN AIR FORCE STATION, GHAZIABAD (NEW DELHI), INDIA - CLINS 0001, 0003, 0005, 0010, 0011, 0026, 0039, AND 0041
Plain-Language Summary
Department of Defense obligated $256.0 million to THE BOEING COMPANY for work described as: IGF::OT::IGF IND001 - INDIA FMS - C-17 BEDDOWN INFRASTRUCTURE FACILITY CONSTRUCTION, HINDAN AIR FORCE STATION, GHAZIABAD (NEW DELHI), INDIA - CLINS 0001, 0003, 0005, 0010, 0011, 0026, 0039, AND 0041 Key points: 1. The contract supports C-17 aircraft beddown infrastructure in India, a significant foreign military sale. 2. Boeing, the sole awardee, highlights a lack of competition for this specialized construction project. 3. The firm fixed-price contract type suggests price certainty but limits flexibility for unforeseen issues. 4. Construction is complete, with the project spanning nearly a decade from award to completion.
Value Assessment
Rating: fair
The total award value is $255.99 million. Benchmarking is difficult due to the unique nature of international military construction and the sole-source award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating no other vendors were considered. This limits price discovery and potentially leads to higher costs than a competitive process.
Taxpayer Impact: Taxpayer funds are used for foreign military sales infrastructure, impacting the overall defense budget and potentially foreign policy objectives.
Public Impact
Supports U.S. foreign military sales objectives by providing essential infrastructure for allied nations. Enhances interoperability and operational readiness of partner air forces utilizing U.S. military equipment. Represents a significant investment in international defense cooperation and strategic partnerships.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing.
- Long project duration (2012-2022) may indicate potential for cost overruns or delays.
- International location adds complexity and potential geopolitical risks.
Positive Signals
- Supports critical foreign military sales infrastructure.
- Firm fixed-price contract provides cost certainty.
- Project completion indicates successful delivery of required facilities.
Sector Analysis
This contract falls under the Construction sector, specifically institutional building construction. Defense infrastructure projects of this scale often involve specialized contractors and can be sole-sourced due to unique requirements or existing relationships.
Small Business Impact
There is no indication of small business participation in this contract, which is common for large, specialized, sole-source international construction projects.
Oversight & Accountability
Oversight would typically involve the Department of Defense's contracting and inspection personnel to ensure compliance with contract terms and quality standards, especially given the international scope.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Long contract duration
- International project complexities
- Lack of competition
- Potential for cost escalation under FFP over extended period
Tags
commercial-and-institutional-building-co, department-of-defense, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $256.0 million to THE BOEING COMPANY. IGF::OT::IGF IND001 - INDIA FMS - C-17 BEDDOWN INFRASTRUCTURE FACILITY CONSTRUCTION, HINDAN AIR FORCE STATION, GHAZIABAD (NEW DELHI), INDIA - CLINS 0001, 0003, 0005, 0010, 0011, 0026, 0039, AND 0041
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 $256.0 million.
What is the period of performance?
Start: 2012-09-14. End: 2022-05-31.
What was the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can satisfy the agency's needs, such as unique capabilities, specialized knowledge, or urgent requirements. Without further documentation, it's impossible to confirm if alternatives were explored or if this was the only viable option.
How did the firm fixed-price contract perform given the nearly decade-long duration and international setting?
The firm fixed-price (FFP) contract aims to provide cost certainty. However, a nearly decade-long duration for a construction project, especially in an international setting, presents risks of scope creep, unforeseen site conditions, or currency fluctuations that could strain an FFP agreement. The data does not detail any contract modifications or claims that might indicate performance challenges.
What is the long-term strategic value of this infrastructure investment for U.S. foreign policy and defense cooperation?
This infrastructure investment is strategically valuable as it supports a key U.S. foreign military sale (FMS) program, enhancing the operational capabilities of a partner nation's air force with C-17 aircraft. This strengthens interoperability, promotes burden-sharing, and solidifies a strategic alliance, contributing to regional stability and U.S. influence in the Indo-Pacific.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W911KB12R0002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5301 BOLSA AVE, HUNTINGTON BEACH, CA, 92647
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: $255,990,216
Exercised Options: $255,990,216
Current Obligation: $255,990,216
Actual Outlays: $89,060
Subaward Activity
Number of Subawards: 72
Total Subaward Amount: $124,431,947
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-09-14
Current End Date: 2022-05-31
Potential End Date: 2022-05-31 00:00:00
Last Modified: 2025-04-22
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