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June 15, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

Contract Awards by US Department of Defense - June 12, 2020

DEFENSE LOGISTICS AGENCY

US Foods, Los Angeles, California, has been awarded a maximum $525,250,000 firm-fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract for full-line food distribution. This was a competitive acquisition with three responses received. This is a five-year contract with no option periods. Location of performance is California, with a June 12, 2025, ordering period end date. Using customers are Army, Marine Corps, Navy, Air Force, Coast Guard and federal civilian agencies. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-20-D-3278).

Sysco Hampton Roads, Inc., Suffolk, Virginia, has been awarded a maximum $377,791,948 fixed-price with economic-price-adjustment, indefinite-quantity contract for full-line food distribution. This was a competitive acquisition with two responses received. This is a two-year base contract with one one-year option period and one two-year option period. Location of performance is Virginia, with a June 9, 2025, ordering period end date. Using military services are Air Force, Army, Coast Guard, Marine Corps and Navy. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE300-20-D-3277).

Federal Contracts Corp., Tampa, Florida, is sharing a maximum $189,261,484 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for agricultural equipment. This was a competitive acquisition with 10 responses received. Other contracts have been awarded under this solicitation (SPE8EC-17-R-0007) and additional awards are expected. Awardees will compete for a portion of the maximum dollar value. This is a five-year base contract with no option periods. Location of performance is Florida, with a June 11, 2025, ordering period end date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2020 through 2025 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE8EC-20-D-0060).

NAVY

Lockheed Martin Corp., Owego, New York, is awarded a not-to-exceed $375,488,269 undefinitized contract modification (P00014) to a previously awarded firm-fixed-price, cost-plus-fixed-fee contract (N00019-19-C-0013). This modification provides non-recurring efforts to design and develop unique hardware and software for the Multi-Role Helicopter MH-60R development program for the government of India. Work will be performed in Owego, New York (81%); and Stratford, Connecticut (19%), and is expected to be complete by June 2025. Foreign Military Sales funds for $117,700,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is awarded a $183,815,073 modification (P00096) to a previously awarded firm-fixed-price, fixed-price-incentive-fee, cost-plus-fixed-fee contract (N00019-15-C-0003). This modification incorporates additional operation, security and technical services in support of the F-35 Lightning II program for the Republic of Korea. Work will be performed in Fort Worth, Texas, and is expected to be complete by January 2021. Foreign Military Sales funds in the amount of $183,815,073 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

Scientific Systems Co. Inc.*, Woburn, Massachusetts, is awarded a $9,575,556 cost-plus-fixed-fee order (N68335-20-F-0006) against a previously issued basic ordering agreement (N68335-15-G-0030). This order provides for continuing improvement of the software development processes to enhance cybersecurity and software safety for the Image Based Navigation for Vertical Take-off and Landing Tactical Unmanned Aerial Vehicle Shipboard Landing program in support of the MQ-8 Fire Scout unmanned air vehicle. This is a Small Business Innovation Research (SBIR) Phase III for research and development performed under the SBIR topic numbers N112-127, N03-025 and AF06-149. Work will be performed in Woburn, Massachusetts (95%); and Bedford, New Hampshire (5%), and is expected to be complete by June 2023. Fiscal 2020 research, development, test and evaluation (Navy) funds for $50,000 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity.

Engility Corp., Andover, Massachusetts, is awarded a $7,956,180 modification (P00010) to a previously awarded cost-plus-fixed-fee, cost reimbursable order (N68936-19-F-0379) against a General Services Administration One Acquisition Solution for Integrated Services Multiple Award Contract (GS00Q14OADU336). Work will be performed in Point Mugu, California (90%); Whidbey Island, Washington (1.67%); Patuxent River, Maryland (1.67%); China Lake, California (1.67%); Baltimore, Maryland (1.67%); St. Louis, Missouri (1.67%); and El Segundo, California (1.65%). This modification exercises an option for engineering, technical and programmatic support services for the development of electronic attack and electronic warfare products within the Airborne Electronic Attack Integrated Program. Work is expected to be complete by June 2021. Fiscal 2020 research, development, test and evaluation (Navy) funds in the amount of $829,056 will be obligated at the time of award, none of which will expire at the end of the fiscal year. The Naval Air Warfare Center Weapons Division, Point Mugu, California, is the contracting activity.

Johnson Controls Government Systems LLC, Rockville, Maryland, is awarded a $7,836,200 firm-fixed-price modification to increase the dollar of a contract task order for the upgrade of a cogeneration power plant, government-maintained buildings and the Metasys building automation software under the Energy Savings Performance Contract within the Naval Facilities Engineering Command (NAVFAC) Southwest area of operations. Work will be performed in Twentynine Palms, California, and provides for contractors to complete the upgrade of the cogeneration plant, government-maintained buildings and the Metasys building automation software. Work is expected to be complete by November 2026. After the award of this modification, the total cumulative task order value will be $194,104,318. For this project, Marine Corps Air Ground Combat Center Twentynine Palms has agreed to pay for the costs of services and construction from project financing, which will be obtained by Johnson Controls Government Systems LLC. The NAVFAC Engineering and Expeditionary Warfare Center, Port Hueneme, California, is the contracting activity (DACA87-97-D-0069-EJP3).

ARMY

Versar Inc., Springfield, Virginia (W912PL-20-D-0028); E3 Federal Solutions LLC, McLean, Virginia (W912PL-20-D-0029); Accura Engineering,* Atlanta, Georgia (W912PL-20-D-0030); and Stanley Consultants, Austin, Texas (W912PL-20-D-0031), will compete for each order of the $300,000,000 firm-fixed-price contract to support various construction activities along the southern border of the U.S. Bids were solicited via the internet with eight received. Work locations and funding will be determined with each order, with an estimated completion date of June 11, 2025. U.S. Army Corps of Engineers, Los Angeles, California, is the contracting activity.

Advanced Technology International, Summerville, South Carolina, was awarded an Other Transaction Authority agreement with a ceiling of $180,752,982 for enhanced technology maturation and risk reduction for Precision Strike Missile. Work will be performed in Grand Prairie, Texas; and Summerville, South Carolina, with an estimated completion date of Nov. 20, 2021. Fiscal 2020 research, development, test and evaluation, Army funds in the amount of $180,752,982 were obligated at the time of the award. U.S. Army Contracting Command, Newark, New Jersey, is the contracting activity (W15QKN-18-9-1008).

Valiant Integrated Services, San Diego, California, was awarded a $68,045,249 hybrid (cost-no fee, firm-fixed-price) contract to provide an immersive training environment. Bids were solicited via the internet with three received. Work locations and funding will be determined with each order, with an estimated completion date of July 31, 2025. U.S. Army Contracting Command, Orlando, Florida, is the contracting activity (W900KK-20-D-0013).

L3 Combat Propulsion Systems, Muskegon, Michigan, was awarded a $44,529,726 firm-fixed-price contract to procure hydro-mechanically propelled transmission, operational reliability, 800 series transmissions in two configurations. Bids were solicited via the internet with one received. Work will be performed in Muskegon, Michigan, with an estimated completion date of Dec. 30, 2022. Fiscal 2018 and 2019 weapons and tracked combat vehicle procurement, Army funds; 2019 overseas contingency operations funds; and 2020 Army working capital funds in the amount of $44,529,726 were obligated at the time of the award. U.S. Army Contracting Command, Detroit Arsenal, Michigan, is the contracting activity (W56HZV-20-C-0124).

Kiewit Infrastructure West Co., Vancouver, Washington, was awarded a $38,875,500 firm-fixed-price contract to replace a full-depth concrete ramp, taxiways and shoulders. Bids were solicited via the internet with two received. Work will be performed in Klamath Falls, Oregon, with an estimated completion date of June 27, 2022. Fiscal 2019 operations and maintenance, Army National Guard funds in the amount of $38,875,500 were obligated at the time of the award. U.S. Property and Fiscal Office, Oregon, is the contracting activity (W50S8Z-20-C-0002).

Walsh Federal LLC, Chicago, Illinois, was awarded a $22,955,000 firm-fixed-price contract to provide labor, materials, equipment and supervision necessary for upgrading the main gate access control point at Defense Depot San Joaquin. Bids were solicited via the internet with three received. Work will be performed in Tracy, California, with an estimated completion date of Nov. 23, 2021. Fiscal 2020 military construction, Army funds in the amount of $22,955,000 were obligated at the time of the award. U.S. Army Corps of Engineers, Sacramento, California, is the contracting activity (W91238-20-C-0011).

Avion Solutions Inc.,* Huntsville, Alabama, was awarded a $19,825,503 modification (0002 33) to time-and-materials Foreign Military Sales (Bahrain, Egypt, Latvia, Saudi Arabia, Slovakia, Sweden, Taiwan, and United Arab Emirates) contract for utility helicopter logistics support services. Bids were solicited via the internet with four received. Work will be performed in Huntsville, Alabama, with an estimated completion date of June 11, 2021. Fiscal 2020 other procurement, Army; and Foreign Military Sales funds in the amount of $19,825,503 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W31P4Q-15-A-0029).

ICF Inc. LLC, Fairfax, Virginia, was awarded a $13,444,607 modification (P00036) to contract W911QX-17-C-0018 to extend mission critical defense cyber operation services provided by ICF. Work will be performed in Adelphi, Columbia, Fort Meade, and Aberdeen Proving Ground, Maryland; Fort Belvoir, Virginia; San Antonio, Texas; and Colorado Springs, Colorado, with an estimated completion date of Dec. 15, 2020. Fiscal 2020 research, development, test and evaluation, Army funds in the amount of $13,444,607 were obligated at the time of the award. U.S. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity.

Orion Marine Construction Inc., Tampa, Florida, was awarded a $10,499,080 firm-fixed-price contract for maintenance dredging. Bids were solicited via the internet with one received. Work will be performed in Corpus Christi, Texas, with an estimated completion date of March 30, 2021. Fiscal 2017, 2018, 2019, and 2020 civil construction funds; and 2017, 2018 and 2020 non-federal funds in the amount of $10,499,080 were obligated at the time of the award. The U.S. Army Corps of Engineers, Galveston, Texas, is the contracting activity (W912HY-20-C-0015).

Torch Technologies Inc., Huntsville, Alabama, was awarded a $7,484,308 modification (P00049) to contract W31P4Q-19-F-C003 for technical and engineering support for research and development. Work will be performed in Huntsville, Alabama, with an estimated completion date of July 10, 2020. Fiscal 2020 research, development, test and evaluation, Army funds in the amount of $7,484,308 were obligated at the time of the award. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. (Awarded June 10, 2020)

AIR FORCE

Raytheon Co., El Segundo, California, has been awarded a $202,600,272 definitive contract for F-15 sustainment. The estimated value of the options is $112,670,298. This contract provides support for the APG 82(V)1 radar modernization program depot activation in support of the Air Force. These services will include the engineering services required to support depot activation. Work will be performed in El Segundo, California; Forest, Mississippi; and McKinney, Texas. Work is expected to complete Dec. 11, 2024. This award is a result of a sole-source acquisition. Fiscal 2018 aircraft procurement funds in the amount of $89,929,974 are being obligated at the time of award. Air Force Life Cycle Management Center, Robins Air Force Base, Georgia, is the contracting activity (FA8505-20-C-0001).

The Boeing Co., St. Louis, Missouri, has been awarded a $24,570,275 definitized, fixed-price-incentive-fee, cost-plus-fixed-fee modification (PZ0011) to contract FA2103-18-C-0061 for the B61-12 Life Extension Program. The contract modification is to definitize contract action for Lot One and Lot Two. Work will be performed in Saint Charles, Missouri, and is expected to be completed Dec. 31, 2022. Fiscal 2019 ammunition procurement funds in the amount of $72,091,114; and 2020 ammunition procurement funds in the amount of $19,545,218 are being obligated at the time of award. Total cumulative face value of the contract is $148,572,879. Air Force Nuclear Weapons Center, Eglin Air Force Base, Florida, is the contracting activity.

IBM Corp., Reston, Virginia, has been awarded an $8,964,932 firm-fixed-price modification (P00010) to contract FA7014-19-F-A152 for advisory and assistance support. This modification exercises Option Year One that continues support for the development, implementations, analysis and provision of policies, guidance, oversight, career field management and human capital management programs across the civil engineer enterprise. Work will be performed in Washington, D.C., and if all options are exercised, work is expected to be completed Aug. 2, 2024. This award is the result of a competitive acquisition with three offers received. Fiscal 2020 operations and maintenance funds in the amount of $4,340,387 are being obligated at the time of award. The Air Force District of Washington Contracting Directorate, Joint Base Andrews, Maryland, is the contracting activity.

DEFENSE ADVANCED RESEARCH PROJECTS AGENCY

Raytheon Co., El Segundo, California, has been awarded a $37,442,009 cost-plus-fixed-fee contract for the Blackjack program, Phase 2. This contract provides for the research, development, and demonstration of an Overhead Persistent Infrared (OPIR) payload for Blackjack. Raytheon will complete design, fabricate, test, and deliver in quantity space-flight ready OPIR payloads capable of integrating with multiple Blackjack buses and Pit Boss subsystem supporting an on-orbit constellation level demonstration. Work will be performed in El Segundo, California, with an estimated completion date of April 2023. Fiscal 2019 research and development funds in the amount of $24,934,144; and fiscal 2020 research and development funds in the amount of $8,000,000 are being obligated at the time of award. This contract is a competitive acquisition in accordance with the original broad agency announcement, HR001118S0032. The Defense Advanced Research Projects Agency, Arlington, Virginia, is the contracting activity (HR001120C0096).

*Small Business

https://www.defense.gov/Newsroom/Contracts/Contract/Article/2218996/source/GovDelivery/

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  • Army Reassures Anxious Industry Over Stryker Cannon Competition

    June 18, 2020 | International, Land

    Army Reassures Anxious Industry Over Stryker Cannon Competition

    While at least two of six competitors have dropped out, the Army says it will still have plenty of 30mm turret options to choose from as it starts testing this fall. By SYDNEY J. FREEDBERG JR.on June 17, 2020 at 2:43 PM WASHINGTON: “This is a healthy competition,” the head of the Army Stryker program, Col. Bill Venable, reassured reporters. “My No. 1 mandate as the overall program manager was to protect the competition in this first phase.” Venable was allaying anxieties yesterday about the five-year-old effort to upgun the infantry transport version of the Stryker, an 8×8 armored vehicle that's become an Army workhorse worldwide since its controversial introduction in 2003. The wheeled Stryker was criticized for having lighter armor than the tracked M1 Abrams and M2 Bradley, although it's far better protected than Humvees. It often struggled over Afghan terrain. But its ability to move rapidly by road – with fewer stops for gas and maintenance than heavy armored vehicles – made it a favorite of US commanders from Iraq to Estonia. So, while overshadowed by high-tech prototypes from hypersonic missiles to high-speed helicopters to robotic tanks, the Army is doubling down on the proven Stryker in several ways: Two light infantry brigades are being converted into Stryker units, which increases the number of active-duty Stryker brigades from five to seven. (There are two more part-time units in the National Guard). Original manufacturer General Dynamics has a $2.4 billion contract to rebuild hundreds of existing Strykers as DVHA1 models with bigger engines, upgraded electronics, and mine-resistant “double-V” hulls. Leonardo DRS is developing a new anti-aircraft variant called IM-SHORAD. It is several months behind schedule due to COVID disruptions and software issues. And the Army is upgunning the basic infantry-carrier variant from an exposed 12.7mm (0.50 cal) machinegun, viable against infantry and unarmored trucks, to a turret-mounted Medium Caliber Weapon System (MCWS), a 30mm autocannon capable of killing light armored vehicles widely used by Russia General Dynamics urgently built 83 upgunned Strykers to reequip a single Europe-based brigade. Now the Army is holding an open competition for an official Program of Record (POR) to upgrade at least three more brigades with a more refined 30mm turret design – but we've heard some anxiety over whether any other vendor can really unseat the incumbent. Out of six companies awarded $150,000 design contracts last summer, Venable confirmed that at least two have dropped out. At the current — sensitive — stage of the competition, the program manager said after a quick consultation with his staff, he isn't allowed to disclose how many companies remain and how many have quit. But Venable did tell reporters that one vendor dropped out because it wasn't making adequate progress to meet the technical requirements, while another decided it didn't have a good enough chance of winning to justify the investment. While the Army gave competitors free Strykers and 30mm guns, they must provide their own turrets, electronics and other components to integrate the weapon and the vehicle into a functional fighting system, to be delivered to the Army for testing by August 10. “We're not funding their development,” Venable said, “[which is] in some cases millions of dollars they're going to invest.” While he won't second-guess any company's cost-benefit calculus, he's been working with all of them to try to keep them in the running, despite disruptions caused by the COVID-19 pandemic. “We have adjusted the evaluation strategy in order to maintain the competition as robust as we can,” he said. “This isn't the first competitive selection effort that I've run, and I will say we have more [viable competitors] than the incumbent, significantly more than the incumbent,” Venable told reporters. “We're going to present a variety of choices to the source selection authority to evaluate starting on 10 August.” Once the vehicles arrive in August, the Army will live-fire the 30 mm guns, check out the armor, and conduct a host of other tests. By January, Venable expects to have that data ready for the evaluation board, which aims to announce a winner by the end of April, 2021. After that, the winning company will start mass production, with the first vehicles scheduled for delivery to a Stryker unit in August or September 2022. That meets the Army's previously announced deadline to start fielding by the end of fiscal '22, Venable said. But the brigade will spend months more taking possession of the vehicles and training on them – a “Rubik's Cube” of logistics and scheduling, Venable said — before it's officially declared the “First Unit Equipped,” probably around March 2023. https://breakingdefense.com/2020/06/army-rebuffs-anxiety-over-stryker-cannon-competition

  • Qatar to upgrade air base used by U.S. to fight terrorism

    July 25, 2018 | International, Aerospace

    Qatar to upgrade air base used by U.S. to fight terrorism

    By Karen DeYoung and Dan Lamothe Qatar will spend $1.8 billion upgrading the major air base used by the United States for its ongoing military and counterterrorism operations in the Middle East and Afghanistan, the Persian Gulf kingdom said Monday. Expansion of the base, which houses about 10,000 U.S. military personnel, will include new family housing facilities for more than 200 officers and other infrastructure enlargements, along with “operational” improvements, Defense Minister Khaled Mohammed al-Attiyah said in an interview. The improvements, to be formally announced at a groundbreaking ceremony Tuesday, were previewed this year in meetings between Attiyah and Defense Secretary Jim Mattis. They come as Qatar and its gulf rivals, Saudi Arabia and the United Arab Emirates, are in the midst of a deep regional dispute and competing for closer relations with the United States. Last summer, fresh from a triumphant visit to Saudi Arabia, President Trump sided with the Saudis and Emiratis when they broke relations with Qatar and accused it of ties to terrorism.By fall, however, Trump backed off after Mattis and then-Secretary of State Rex Tillerson said that it was unwise to take sides in what was a long-standing rivalry, and reminded him of U.S. military interests in Qatar. Since then, he has repeatedly called on them to mend their differences and offered to mediate. Last April, when Trump hosted a visit by Emir Tamim bin Hamad al-Thani, Qatar was described as a “valued partner and longtime friend” that provided “critical support” for operations against the Islamic State. Qatar is also viewed as a major donor to administration plans to provide development assistance to Gaza and the West Bank as part of a still-unrevealed U.S. plan for Israeli-Palestinian peace. Like Saudi Arabia and the UAE, Qatar is a major customer for the U.S. defense industry, including last year's purchase of $12 billion worth of F-15s. “We have bought a lot of military equipment from the U.S. so we can fly hand in hand with our partners,” Attiya said. He dismissed any notion of regional rivalry, saying that Qatar is “not very much interested in rivalry” but rather was interested in “the stability of the region.” According to a background statement from the Qatar government, the contract for 36 F-15 fighter jets “supports 50,000 total jobs and more than 550 suppliers in 42 states.” Other recent purchases include $20 million worth of Javelin guided missiles, $700 million in logistics support services and equipment, and an estimated $200 million in weapons systems “which support the foreign policy and national security objectives of the United States.” But the centerpiece of U.S.-Qatar ties is Al Udeid Air Base, home to scores of aircraft, including fighters, bombers, tankers and reconnaissance planes. The base is key to U.S. military efforts in the Middle East and has played a central role in the Pentagon's air campaign against the Islamic State in Syria and Iraq. In addition to the large U.S. troop presence, it is also the headquarters of Air Forces Central Command, headed by a three-star U.S. general, and a combined air operations center from which the Pentagon tracks the maneuvers of aircraft throughout the region. The U.S. military relationship with Qatar expanded rapidly in the 1990s and early part of the 21st century, as the Qataris built Al Udeid and encouraged the United States to use it. The Pentagon moved its air operations center there from Saudi Arabia in 2003, after Riyadh denied the United States permission to use its Prince Sultan Air Base to attack Iraq. Qatar's willingness to let the United States fly bombers from Al Udeid is seen as particularly significant. Other nations in the region do not allowed bombers, but the Pentagon has had a steady rotation of bomber squadrons through the base. A unit of B-1B bombers arrived this spring, replacing B-52s that carried out airstrikes in Iraq, Afghanistan and Syria over the previous two years. The U.S. military has spent about $450 million in construction at Al Udeid since 2003, expanding the facility from an expeditionary airfield in which many U.S. troops lived in tents to the more permanent structures there today. Qatar calculates it has spent $8 billion there to support U.S. operations. The U.S. presence at Tuesday's ceremony is expected to be relatively low-level, as defense officials try to distance themselves from the ongoing inter-gulf dispute. Attiya said that Qatar hoped eventually to see Al Udeid declared a permanent American facility. “Of course we would like to see our colleagues and allies permanently staying here with us,” Attiya said. But the main purpose of the expansion, he said, “is that we have men and women away from home and we are trying always to modify and expand, just to make their stay comfortable.” Over the next five years, Qatar is also building two major new “top-of-the-line” naval bases, Attiyah said, both of which would be “able to host our partner the United States if they feel that it is convenient to send their navy as well.” https://www.washingtonpost.com/world/national-security/qatar-to-upgrade-air-base-used-by-us-to-fight-terrorism/2018/07/23/19e04c84-8eb7-11e8-b769-e3fff17f0689_story.html?utm_term=.fbd30fa0a31d

  • Pentagon's Lord blames KC-46A's fixed-price contract structure for further programme issues

    October 5, 2020 | International, Aerospace

    Pentagon's Lord blames KC-46A's fixed-price contract structure for further programme issues

    Pat Host The Pentagon's top acquisition executive blames the Boeing KC-46A Pegasus aerial refuelling tanker's fixed-price contract structure for the programme's ongoing issues. Senator Jeanne Shaheen of New Hampshire said during a 1 October hearing that Boeing cancelled a 2 October KC-46A delivery to the 157th Air Refueling Wing (ARW) in New Hampshire due to electrical problems with the aircraft. Ellen Lord, under secretary of defense for acquisition and sustainment (A&S), said in response that the root cause of the KC-46A's problems is the contract type that was awarded to Boeing. Lord said that one issue is the technical solution that was the aircraft's original design, which is now being redesigned. The programme, she said, also has a myriad of manufacturing issues including ongoing foreign object debris (FOD) problems. The programme, Lord said, has an engineering design and execution issue as well as a manufacturing problem. Boeing's fixed-price contract structure, previously lauded as an example of improved government contracting, means the company pays the Pentagon for cost overruns. The contract structure was considered an improvement over cost-plus contracting, where the government reimburses the contractor for cost overruns. One expert said that Boeing paying for cost overruns on the KC-46A disincentivises the company from improving its performance. Doug Birkey, Mitchell Institute for Aerospace Studies executive director, told Janes https://www.janes.com/defence-news/news-detail/pentagons-lord-blames-kc-46as-fixed-price-contract-structure-for-further-programme-issues

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