DoD awards $301M to Boeing for F-15 simulator services, raising competition concerns
Contract Overview
Contract Amount: $301,311,880 ($301.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2016-07-01
End Date: 2023-12-31
Contract Duration: 2,739 days
Daily Burn Rate: $110.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: COMBINED F-15C/E MTC SIMULATOR SERVICES
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $301.3 million to THE BOEING COMPANY for work described as: COMBINED F-15C/E MTC SIMULATOR SERVICES Key points: 1. Significant contract value awarded to a single vendor. 2. Lack of competition may lead to suboptimal pricing. 3. Long contract duration increases long-term risk. 4. Services fall under IT and professional services sector.
Value Assessment
Rating: questionable
The contract value of $301M over approximately 7.5 years for simulator services is substantial. Without competitive bidding, it's difficult to assess if this represents fair market value compared to potential alternatives or previous contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This limits price discovery and potentially inflates costs for taxpayers.
Taxpayer Impact: The lack of competition for a large contract like this means taxpayers may be paying more than necessary for essential training services.
Public Impact
Essential for F-15 pilot training and readiness. Impacts Air Force operational capabilities. Long-term reliance on a single provider for critical systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
- Potential for cost overruns
Positive Signals
- Ensures continued F-15 readiness
- Awarded to incumbent provider
Sector Analysis
This contract falls within the IT and professional services sector, specifically custom computer programming. The $301M value is significant for this type of service, especially given the lack of competition.
Small Business Impact
The contract data indicates that small business participation was not a factor in this award, as it was awarded directly to The Boeing Company and no subcontracting information is provided.
Oversight & Accountability
The non-competitive nature of this award warrants further oversight to ensure the government is receiving fair value and that future requirements are properly competed.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- High contract value
- Long contract duration
- Potential for cost overruns
- Limited transparency on justification
Tags
custom-computer-programming-services, department-of-defense, mo, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $301.3 million to THE BOEING COMPANY. COMBINED F-15C/E MTC SIMULATOR SERVICES
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 $301.3 million.
What is the period of performance?
Start: 2016-07-01. End: 2023-12-31.
What is the justification for not competing this simulator services contract, and what steps are being taken to ensure future competition?
The justification for not competing this contract is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source can provide the required service. However, for long-term, high-value contracts, agencies should actively plan for and encourage competition to ensure best value for taxpayers. Future steps should involve market research and strategic sourcing to break up requirements or foster new entrants.
How does the cost of these simulator services compare to industry benchmarks for similar training systems, especially given the sole-source nature of the award?
Without competitive bids, a direct cost comparison to industry benchmarks is challenging. The sole-source award to Boeing means the price was likely negotiated rather than determined by market forces. A thorough cost analysis, potentially involving independent government cost estimators or benchmarking against publicly available data for comparable simulator services, would be necessary to assess value for money.
What are the risks associated with a sole-source, long-term contract for critical training simulators, and how are they being mitigated?
The primary risks include potential cost escalation due to lack of competition, vendor lock-in, and reduced incentive for innovation. Mitigation strategies could involve strict contract performance monitoring, incorporating incentive fees for cost savings or performance improvements, and actively seeking opportunities to introduce competition in future contract actions or through alternative training methods.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $301,311,880
Exercised Options: $301,311,880
Current Obligation: $301,311,880
Actual Outlays: $18,839,158
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-07-01
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2026-01-16
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)