DoD Awards $90.8M to Boeing for C-17 Fight Deck Obsolescence Resolution
Contract Overview
Contract Amount: $9,082,800 ($9.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-12-19
End Date: 2030-10-26
Contract Duration: 1,772 days
Daily Burn Rate: $5.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: RESOLVE OBSOLESCENCE IN THE C-17 FIGHT DECK THROUGH AN INTEGRATED, FUNCTIONAL, MODERNIZED, OPEN ARCHITECTURE SOLUTION APPROACH THAT ALSO PROVIDES DEVELOPMENT/UPDATES TO THE LABS AFFECTED.
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78226
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $9.1 million to THE BOEING COMPANY for work described as: RESOLVE OBSOLESCENCE IN THE C-17 FIGHT DECK THROUGH AN INTEGRATED, FUNCTIONAL, MODERNIZED, OPEN ARCHITECTURE SOLUTION APPROACH THAT ALSO PROVIDES DEVELOPMENT/UPDATES TO THE LABS AFFECTED. Key points: 1. Contract awarded to incumbent, Boeing, for critical C-17 aircraft modernization. 2. Focus on integrated, functional, and modernized open architecture for the fight deck. 3. Addresses obsolescence issues, ensuring continued operational capability for the Air Force. 4. Long-term contract duration (2030) suggests significant integration and sustainment needs.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar aircraft modernization contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to the specialized nature of C-17 aircraft systems and the incumbent's existing knowledge. This lack of competition may limit price discovery and potentially lead to higher costs.
Taxpayer Impact: Taxpayer funds are being used for a sole-source award, highlighting the need for robust oversight to ensure fair pricing and value for money.
Public Impact
Ensures continued operational readiness of the C-17 Globemaster III, a vital strategic airlift asset. Modernization of the fight deck improves pilot interface and system reliability. Addresses critical obsolescence, preventing potential mission failures or costly emergency repairs. Supports long-term sustainment and future upgradeability of a key military platform.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and potential cost savings.
- Cost Plus Fixed Fee contract type carries inherent risk of cost growth.
- Long contract duration requires sustained oversight.
Positive Signals
- Addresses critical obsolescence in a key military aircraft.
- Modernization enhances operational effectiveness and safety.
- Focus on open architecture promotes future flexibility.
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing and sustainment. Spending on aircraft modernization is common to maintain fleet readiness and incorporate new technologies, but sole-source awards warrant scrutiny.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of small business participation in the provided data, suggesting potential missed opportunities for subcontracting.
Oversight & Accountability
Given the sole-source nature and cost-plus contract type, rigorous oversight by the Department of the Air Force is crucial to manage costs, ensure performance, and verify the necessity of all expenditures.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Long contract duration requires sustained oversight
- Limited visibility into small business participation
Tags
aircraft-manufacturing, department-of-defense, tx, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.1 million to THE BOEING COMPANY. RESOLVE OBSOLESCENCE IN THE C-17 FIGHT DECK THROUGH AN INTEGRATED, FUNCTIONAL, MODERNIZED, OPEN ARCHITECTURE SOLUTION APPROACH THAT ALSO PROVIDES DEVELOPMENT/UPDATES TO THE LABS AFFECTED.
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 Air Force).
What is the total obligated amount?
The obligated amount is $9.1 million.
What is the period of performance?
Start: 2025-12-19. End: 2030-10-26.
What is the justification for not competing this critical modernization effort, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically relates to unique capabilities, proprietary technology, or the incumbent's intimate knowledge of the system. To ensure fair pricing, the government likely relies on cost analysis, historical pricing data, and negotiation with the contractor. Independent cost estimates and thorough review of the contractor's proposed costs are essential oversight mechanisms.
How will the Cost Plus Fixed Fee structure be managed to mitigate potential cost overruns and ensure value for taxpayer money?
Managing a CPFF contract requires stringent oversight of the contractor's direct costs and the fixed fee. The government must actively monitor all incurred costs, ensure they are reasonable and allocable to the contract, and scrutinize any proposed changes. Regular audits and performance reviews are critical to identify potential cost creep early and hold the contractor accountable for efficient execution.
What are the specific metrics and milestones used to assess the success of the 'integrated, functional, modernized, open architecture solution' and its impact on operational effectiveness?
Success metrics would likely include the successful integration of new components, achievement of defined functional requirements, adherence to open architecture principles (e.g., modularity, interoperability), and demonstrable improvements in system reliability and maintainability. Key performance indicators (KPIs) related to flight deck performance, reduced failure rates, and ease of future updates would be tracked against baseline data.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA855724R0001
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4060 N LAKEWOOD BLVD, LONG BEACH, CA, 90808
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: $266,616,651
Exercised Options: $265,064,248
Current Obligation: $9,082,800
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-12-19
Current End Date: 2030-10-26
Potential End Date: 2031-10-29 00:00:00
Last Modified: 2025-12-22
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