DoD Awards $2.14 Billion C-17 Aircraft Contract to Boeing, Not Competed
Contract Overview
Contract Amount: $2,137,798,591 ($2.1B)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2012-02-02
End Date: 2016-11-19
Contract Duration: 1,752 days
Daily Burn Rate: $1.2M/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UCA FOR10 INDIA C-17 AIRCRAFT
Place of Performance
Location: LONG BEACH, LOS ANGELES County, CALIFORNIA, 90807
Plain-Language Summary
Department of Defense obligated $2.14 billion to THE BOEING COMPANY for work described as: UCA FOR10 INDIA C-17 AIRCRAFT Key points: 1. Significant spending on a major defense asset. 2. Sole-source award to a dominant defense contractor. 3. Potential for higher costs due to lack of competition. 4. Aircraft manufacturing sector is highly specialized.
Value Assessment
Rating: questionable
The contract value is substantial. Without competitive bidding, it's difficult to assess if the price reflects fair market value compared to similar aircraft procurements.
Cost Per Unit: $636,118.45
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.
Public Impact
Ensures continued operation and maintenance of critical C-17 transport aircraft. Supports a major defense contractor and its supply chain. Impacts national security readiness by providing essential airlift capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Sole-source award
Positive Signals
- Essential defense asset
- Supports critical mission
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending benchmarks for sole-source aircraft procurements can vary widely, but large sums often raise concerns about price justification.
Small Business Impact
This contract was awarded to a large prime contractor, The Boeing Company. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The Department of Defense awarded this contract. Oversight would focus on ensuring the necessity of the sole-source award and the reasonableness of the price negotiated with Boeing.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award raises concerns about price fairness.
- High contract value warrants close scrutiny.
- Lack of competition limits transparency.
- Potential for cost overruns without competitive pressure.
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.14 billion to THE BOEING COMPANY. UCA FOR10 INDIA C-17 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 $2.14 billion.
What is the period of performance?
Start: 2012-02-02. End: 2016-11-19.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of adequate competition. For the C-17, it might relate to specific modifications, sustainment, or unique production requirements that only Boeing could fulfill at the time of the award.
How does the per-unit cost compare to other similar aircraft procurements, especially those that were competed?
Benchmarking the per-unit cost of $636,118.45 for the C-17 against other large transport aircraft is challenging without specific contract details. Competitively procured aircraft often achieve lower prices due to market forces. A detailed analysis would require comparing specifications, age, and acquisition environment.
What is the long-term strategic value of investing in the C-17 platform through this contract?
The C-17 Globemaster III is a critical strategic airlift asset for the U.S. military, enabling rapid deployment of troops and equipment globally. This contract ensures the continued operational readiness and sustainment of a vital platform, supporting national security objectives and global power projection capabilities.
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: 2401 E WARDLOW RD, LONG BEACH, CA, 90807
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $2,207,389,321
Exercised Options: $2,207,389,321
Current Obligation: $2,137,798,591
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA861406D2006
IDV Type: IDC
Timeline
Start Date: 2012-02-02
Current End Date: 2016-11-19
Potential End Date: 2016-11-19 00:00:00
Last Modified: 2017-10-18
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)