Boeing awarded $129M for F-15 RADAR ENTERPRISE IV PROGRAM, with limited competition

Contract Overview

Contract Amount: $129,290,728 ($129.3M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2023-02-01

End Date: 2026-01-31

Contract Duration: 1,095 days

Daily Burn Rate: $118.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: F-15 RADAR ENTERPRISE IV PROGRAM

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $129.3 million to THE BOEING COMPANY for work described as: F-15 RADAR ENTERPRISE IV PROGRAM Key points: 1. Contract awarded to a single, established provider, raising questions about potential price efficiencies. 2. The contract's duration of 1095 days suggests a long-term need for radar system support. 3. Performance is tied to an existing program, indicating a focus on sustainment rather than new development. 4. The cost-plus-fixed-fee structure may incentivize cost overruns, requiring close oversight. 5. Limited competition suggests a potential lack of market pressure to drive down costs. 6. The contract falls within the broader aircraft manufacturing sector, a significant area of defense spending.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the lack of publicly available comparable data for specific F-15 radar enterprise sustainment efforts. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex defense systems where scope may evolve, can lead to higher overall costs compared to fixed-price contracts if not managed diligently. Without detailed cost breakdowns or comparisons to similar sustainment contracts for other aircraft platforms, it's difficult to definitively assess if the pricing represents excellent value for money. However, the fixed fee component provides some incentive for the contractor to manage costs efficiently within the defined scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, The Boeing Company, was solicited. This approach is typically justified when a specific capability is unique to a single source, or in cases of urgent and compelling need where competition is not feasible. The lack of competition means that the government did not benefit from the price discovery and potential cost reductions that typically arise from multiple bidders vying for a contract. This can lead to higher prices than might be achieved in a competitive environment.

Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for this radar system support, as there was no market pressure to ensure the lowest possible price was offered.

Public Impact

The U.S. Air Force benefits from continued sustainment and modernization of its F-15 fighter jet radar systems. This contract ensures the operational readiness of a critical component for a significant portion of the U.S. air combat fleet. The primary geographic impact is within the United States, supporting Air Force bases and operations. The contract supports specialized engineering, manufacturing, and technical roles within The Boeing Company, potentially preserving skilled jobs in the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs for taxpayers.
Cost-plus-fixed-fee contract structure can incentivize cost escalation if not rigorously managed.
Lack of transparency in detailed cost breakdowns makes independent value assessment difficult.
Long contract duration may mask inefficiencies if performance metrics are not strictly enforced.

Positive Signals

Award to incumbent contractor likely ensures continuity of operations for a critical defense system.
Fixed fee component provides some cost control compared to pure cost-reimbursement contracts.
Contract supports a vital component of the F-15 fleet, contributing to national security.
The Boeing Company has a long-standing relationship and expertise with the F-15 platform.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, significant R&D investment, and long product lifecycles. Contracts for aircraft components and sustainment, like this one for the F-15 radar enterprise, represent a substantial portion of defense spending. The market is often dominated by a few large prime contractors, with specialized components and services often being sole-sourced or awarded under limited competition due to proprietary technology or established integration requirements. Spending benchmarks for similar sustainment programs can vary widely based on system complexity and fleet size, but typically run into hundreds of millions or billions of dollars over the life of a platform.

Small Business Impact

This contract does not appear to include specific small business set-aside provisions, as indicated by 'sb': false. The prime contractor, The Boeing Company, is a large aerospace firm. While large prime contractors are often required to subcontract a portion of their work to small businesses, the specific subcontracting plan for this contract is not detailed here. The absence of a direct set-aside means that small businesses are unlikely to be the primary recipients of this funding, though they may benefit indirectly through Boeing's supply chain if subcontracting opportunities arise.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Air Force, specifically the contracting activity and program management offices responsible for the F-15 program. The contract's Cost Plus Fixed Fee (CPFF) structure necessitates robust financial oversight to monitor costs and ensure the fixed fee is earned appropriately. Transparency is generally limited in sole-source defense contracts, but reporting requirements mandated by the contract and federal acquisition regulations will provide some level of accountability. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

F-15 Aircraft Sustainment Programs
Defense Radar Systems Procurement
Aerospace Manufacturing Contracts
Air Force Avionics Modernization
Combat Aircraft Component Support

Risk Flags

Sole-source award
Cost-plus-fixed-fee pricing
Potential for cost overruns
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $129.3 million to THE BOEING COMPANY. F-15 RADAR ENTERPRISE IV PROGRAM

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 $129.3 million.

What is the period of performance?

Start: 2023-02-01. End: 2026-01-31.

What is The Boeing Company's track record with F-15 radar systems and similar defense contracts?

The Boeing Company has a long and extensive history as the prime contractor for the F-15 program, including the development, manufacturing, and sustainment of its various components. They have been responsible for integrating and maintaining the radar systems on F-15 aircraft for decades. Their track record includes numerous contracts for upgrades, repairs, and ongoing support of F-15 avionics, including radar technology. While specific performance metrics for past radar sustainment contracts are not publicly detailed, Boeing's continued role as the primary provider suggests a generally satisfactory performance history in meeting the Air Force's requirements for this platform. However, as a sole-source awardee for this specific 'RADAR ENTERPRISE IV PROGRAM,' a deeper dive into past performance evaluations and any past issues or disputes related to F-15 radar sustainment would be necessary for a comprehensive assessment.

How does the value of this contract compare to similar radar sustainment efforts for other fighter aircraft?

Direct, apples-to-apples comparisons for specific radar sustainment contracts are difficult due to proprietary information and the unique nature of each aircraft's systems. However, the $129 million awarded to Boeing for the F-15 RADAR ENTERPRISE IV PROGRAM over three years (approximately $43 million per year) falls within a typical range for complex avionics sustainment. For context, major radar system upgrades or sustainment programs for other advanced fighter jets like the F-35 or F-22 can involve costs ranging from tens to hundreds of millions of dollars annually, often spread over many years. The value here is influenced by the F-15's established fleet size, the specific technological maturity of its radar systems, and the scope of 'enterprise' support (which may include logistics, maintenance, engineering, and upgrades). The sole-source nature of this award, however, prevents a direct value-for-money comparison against a competitive bid.

What are the primary risks associated with this sole-source, cost-plus-fixed-fee contract?

The primary risks associated with this sole-source, cost-plus-fixed-fee (CPFF) contract are twofold. Firstly, the sole-source nature eliminates competitive pressure, which can lead to higher prices than might be achieved in a competitive bidding process. The government lacks the benefit of market forces driving down costs. Secondly, the CPFF structure, while providing flexibility for evolving requirements, carries inherent risks of cost escalation. The contractor is reimbursed for allowable costs plus a fixed fee representing profit. If cost controls are weak or scope creep occurs without adequate adjustments, the total cost to the government can exceed initial estimates. Effective oversight is crucial to mitigate these risks, ensuring that all costs are reasonable, allocable, and necessary, and that the fixed fee is appropriately earned.

How effective is the F-15 RADAR ENTERPRISE IV PROGRAM likely to be in ensuring the operational readiness of the F-15 fleet?

The effectiveness of the F-15 RADAR ENTERPRISE IV PROGRAM in ensuring the operational readiness of the F-15 fleet is expected to be high, given that it is a sustainment contract awarded to the original equipment manufacturer (OEM), The Boeing Company. This program likely focuses on maintaining, repairing, and potentially upgrading the radar systems, which are critical for the F-15's combat effectiveness. By ensuring the radar systems function correctly and are kept technologically relevant, the program directly supports the Air Force's mission readiness. The long duration (three years) suggests a commitment to sustained support. However, the effectiveness is contingent on robust program management, adequate funding, and the contractor's ability to deliver required parts, services, and technical expertise without significant delays or performance issues.

What are the historical spending patterns for F-15 radar sustainment, and how does this contract fit?

Historical spending on F-15 radar sustainment has been substantial over the decades, reflecting the platform's long service life and the complexity of its avionics. The Air Force has consistently invested in maintaining and upgrading the radar systems to keep pace with evolving threats and technological advancements. This $129 million contract for the 'RADAR ENTERPRISE IV PROGRAM' represents a specific, discrete funding allocation within that broader, ongoing sustainment effort. It is likely one of several contracts supporting the F-15's radar capabilities, potentially focusing on a particular phase of sustainment, a specific set of upgrades, or a defined period of performance. Without access to historical budget data specifically itemized for F-15 radar sustainment over previous years, it's difficult to place this single award in precise historical context, but it aligns with the established pattern of significant, continuous investment in this critical aircraft component.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134

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: $129,290,728

Exercised Options: $129,290,728

Current Obligation: $129,290,728

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $65,155,295

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA863417D2696

IDV Type: IDC

Timeline