Boeing Awarded $106.5M for F-15 SA ATD, Extending to 2029
Contract Overview
Contract Amount: $106,450,700 ($106.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2016-12-13
End Date: 2029-05-31
Contract Duration: 4,552 days
Daily Burn Rate: $23.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F-15 SA ATD
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $106.5 million to THE BOEING COMPANY for work described as: F-15 SA ATD Key points: 1. Significant contract value of $106.5 million for F-15 SA ATD. 2. Sole-source award to The Boeing Company raises competition concerns. 3. Long contract duration of 4552 days (approx. 12.5 years) warrants close monitoring. 4. Cost Plus Fixed Fee (CPFF) contract type may incentivize higher costs. 5. Department of the Air Force is the primary customer.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs compared to fixed-price contracts. Benchmarking against similar F-15 program support contracts is difficult without more detailed cost breakdowns.
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 lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The sole-source nature of this award may result in taxpayers paying a premium due to the absence of competitive bidding.
Public Impact
Impacts readiness and modernization of the F-15 fleet. Ensures continued support for a key Air Force fighter aircraft. Potential for cost overruns due to CPFF contract type and lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Supports critical F-15 aircraft
- Long-term program stability
Sector Analysis
This contract falls within the aerospace and defense sector, specifically related to aircraft parts and auxiliary equipment. Spending in this sector is often characterized by long-term sustainment contracts and high R&D costs.
Small Business Impact
There is no indication that small businesses are involved in this specific contract award. The prime contractor, Boeing, is a large aerospace manufacturer.
Oversight & Accountability
The long duration and sole-source nature of this contract necessitate robust oversight from the Department of the Air Force to ensure cost control and performance standards are met.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Cost Plus Fixed Fee structure may incentivize higher costs.
- Long contract duration increases risk of cost escalation and performance issues.
- Lack of transparency in cost breakdown.
- Potential for contractor lock-in.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, mo, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $106.5 million to THE BOEING COMPANY. F-15 SA ATD
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 $106.5 million.
What is the period of performance?
Start: 2016-12-13. End: 2029-05-31.
What is the estimated total cost of this contract over its full duration, and how does it compare to similar sustainment contracts for other major fighter aircraft?
The current awarded amount is $106.5 million, with an estimated completion date in May 2029. A precise total cost projection is difficult without knowing the full scope of work and potential contract modifications. Benchmarking against similar sustainment contracts for aircraft like the F-16 or F-35 would require detailed analysis of their respective contract terms, durations, and specific support requirements.
What specific justifications were provided for awarding this contract on a sole-source basis, and what steps are being taken to mitigate the risks associated with limited competition?
Sole-source justifications typically cite unique capabilities, proprietary technology, or the absence of viable alternatives. For this F-15 SA ATD contract, the justification likely relates to Boeing's sole manufacturing and support role for the F-15 platform. Mitigation strategies may include rigorous performance monitoring, detailed cost audits, and potentially negotiating more favorable terms in future contract modifications or follow-on contracts.
How will the Cost Plus Fixed Fee (CPFF) structure be managed to ensure cost efficiency and prevent potential overruns, given the extended contract period?
Managing a CPFF contract over a long period requires stringent oversight. The Air Force must actively monitor Boeing's incurred costs, ensure the fixed fee remains appropriate for the effort, and scrutinize any proposed cost increases. Regular performance reviews and audits are crucial to verify that costs are reasonable and allocable, and that the contractor is making efficient use of resources to achieve the contract objectives.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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: $111,149,196
Exercised Options: $111,149,196
Current Obligation: $106,450,700
Subaward Activity
Number of Subawards: 81
Total Subaward Amount: $12,154,210
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-12-13
Current End Date: 2029-05-31
Potential End Date: 2029-05-31 00:00:00
Last Modified: 2026-03-31
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