DoD Awards Boeing $286M for C-17 Globemaster III Sustainment Through 2026

Contract Overview

Contract Amount: $286,492,471 ($286.5M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2025-11-01

End Date: 2026-10-31

Contract Duration: 364 days

Daily Burn Rate: $787.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: C-17 GLOBEMASTER III (G3) SUSTAINMENT

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78226

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $286.5 million to THE BOEING COMPANY for work described as: C-17 GLOBEMASTER III (G3) SUSTAINMENT Key points: 1. Significant contract value for sustainment of a critical military asset. 2. Sole reliance on Boeing raises concerns about competitive pricing and innovation. 3. Potential for cost overruns due to Cost Plus Incentive Fee structure. 4. Sustainment spending in aircraft manufacturing is a substantial sector.

Value Assessment

Rating: questionable

The contract's Cost Plus Incentive Fee structure, while aiming for efficiency, can lead to higher costs if not tightly managed. Benchmarking against similar sustainment contracts for large aircraft is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was sole-sourced, limiting competition and potentially impacting price discovery. The lack of competitive bidding means the government relies heavily on Boeing's proposed pricing and cost controls.

Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for sustainment services that could potentially be procured at a lower cost through a competitive process.

Public Impact

Ensures continued operational readiness of the C-17 fleet, vital for global logistics and troop transport. Supports a key defense contractor, impacting jobs and the aerospace industrial base. Long-term sustainment needs for major weapon systems represent a significant portion of the defense budget.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The aerospace and defense sector, particularly aircraft manufacturing and sustainment, involves high-value, complex contracts. Benchmarks for sustainment can vary widely based on aircraft type, age, and operational tempo.

Small Business Impact

This contract is awarded to a large prime contractor, The Boeing Company. There is no explicit information provided regarding subcontracting opportunities for small businesses within this award.

Oversight & Accountability

Oversight will be critical to ensure Boeing meets performance requirements and manages costs effectively under the incentive fee structure. Regular audits and performance reviews are essential for accountability.

Related Government Programs

Risk Flags

Tags

aircraft-manufacturing, department-of-defense, tx, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $286.5 million to THE BOEING COMPANY. C-17 GLOBEMASTER III (G3) SUSTAINMENT

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 $286.5 million.

What is the period of performance?

Start: 2025-11-01. End: 2026-10-31.

What is the projected cost savings or efficiency gain anticipated from the incentive fee structure in this contract?

The specific projected savings or efficiency gains from the incentive fee structure are not detailed in the provided data. Cost Plus Incentive Fee contracts aim to incentivize the contractor to control costs by sharing savings or cost overruns. The effectiveness depends on the baseline cost estimates and the agreed-upon sharing formula.

What are the risks associated with relying solely on Boeing for C-17 sustainment over the contract period?

Sole-source reliance on Boeing for C-17 sustainment carries risks such as potential price escalation without competitive pressure, limited flexibility in adopting new sustainment technologies, and dependence on a single supplier's production capacity and strategic decisions.

How does the sustainment cost per flight hour for the C-17 compare to similar large military transport aircraft?

Direct comparison of sustainment cost per flight hour for the C-17 against similar aircraft is challenging without access to proprietary data and specific operational contexts. Factors like fleet size, age, mission profile, and maintenance philosophy significantly influence these costs.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingAircraft Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $772,252,405

Exercised Options: $772,252,405

Current Obligation: $286,492,471

Subaward Activity

Number of Subawards: 119

Total Subaward Amount: $24,882,881

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA852621D0001

IDV Type: IDC

Timeline

Start Date: 2025-11-01

Current End Date: 2026-10-31

Potential End Date: 2026-10-31 00:00:00

Last Modified: 2026-03-26

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