Boeing Awarded $123M for 4 Test Vehicles by Air Force
Contract Overview
Contract Amount: $123,339,246 ($123.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-06-05
End Date: 2027-08-14
Contract Duration: 800 days
Daily Burn Rate: $154.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: FOUR (4) PRODUCTION REPRESENTATIVE TEST VEHICLES DELIVERY ORDER
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $123.3 million to THE BOEING COMPANY for work described as: FOUR (4) PRODUCTION REPRESENTATIVE TEST VEHICLES DELIVERY ORDER Key points: 1. Significant contract value for specialized defense assets. 2. Boeing is a major defense contractor, indicating established capabilities. 3. Risk associated with fixed-price incentive contracts requires careful monitoring. 4. Spending aligns with the Aircraft Manufacturing sector's typical large-scale projects.
Value Assessment
Rating: good
The $123.3 million award for four test vehicles appears reasonable given the specialized nature of the contract and Boeing's established role in defense aircraft production. Benchmarking against similar complex prototype development contracts would provide further validation.
Cost Per Unit: $30,834,811.40
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair pricing, though the specific price discovery mechanisms are not detailed.
Taxpayer Impact: Taxpayer funds are being used for critical defense testing capabilities, supporting national security objectives.
Public Impact
Enhances U.S. Air Force's testing and evaluation capabilities. Supports advanced aerospace technology development. Contributes to the defense industrial base and associated jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Fixed-price incentive contract requires close performance monitoring.
- Potential for cost overruns if performance targets are not met.
- Reliance on a single contractor for this specific delivery order.
Positive Signals
- Awarded under full and open competition.
- Supports critical national defense objectives.
- Clear delivery timeline specified.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, characterized by high R&D investment and long production cycles. Spending benchmarks for similar advanced vehicle development can vary widely based on complexity and quantity.
Small Business Impact
While the prime contractor is Boeing, the contract details do not specify any subcontracting goals for small businesses. Further investigation may be needed to determine potential small business participation.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The fixed-price incentive structure necessitates diligent monitoring of performance and costs to ensure accountability and value for taxpayer money.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Fixed-price incentive contract structure.
- Potential for cost growth.
- Reliance on a single large prime contractor.
- Limited visibility into small business participation.
Tags
aircraft-manufacturing, department-of-defense, mo, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $123.3 million to THE BOEING COMPANY. FOUR (4) PRODUCTION REPRESENTATIVE TEST VEHICLES DELIVERY ORDER
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 $123.3 million.
What is the period of performance?
Start: 2025-06-05. End: 2027-08-14.
What are the specific performance metrics tied to the incentive portion of the contract, and how will they be measured?
The contract specifies a fixed-price incentive (FPI) structure, meaning the final price will be adjusted based on the contractor's ability to meet certain performance targets. Detailed metrics are typically outlined in the contract's statement of work and include factors like technical performance, schedule adherence, and quality standards. The Air Force will monitor these metrics closely to determine the final payment, ensuring alignment with program objectives and cost control.
What is the risk of schedule delays or cost overruns given the fixed-price incentive nature of this contract?
Fixed-price incentive contracts carry inherent risks of schedule delays and cost overruns if performance targets are challenging or unforeseen issues arise. While the incentive structure aims to align contractor and government interests, the government bears some risk if the contractor incurs costs exceeding the target price but below the ceiling. Robust program management and proactive risk mitigation by the Air Force are crucial to manage these potential issues effectively.
How does the acquisition of these production representative test vehicles contribute to the overall effectiveness of the Air Force's future platforms?
These production representative test vehicles are crucial for validating the design, performance, and manufacturability of upcoming aircraft platforms before full-scale production. They allow for rigorous testing under realistic conditions, identifying potential flaws and areas for improvement. This process significantly enhances the overall effectiveness of the final fielded systems by ensuring they meet operational requirements and are reliable in the field.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIXED PRICE INCENTIVE (L)
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: $123,339,246
Exercised Options: $123,339,246
Current Obligation: $123,339,246
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA861718D6219
IDV Type: IDC
Timeline
Start Date: 2025-06-05
Current End Date: 2027-08-14
Potential End Date: 2027-02-19 00:00:00
Last Modified: 2026-01-14
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