DoD Awards Boeing $238M for F-15 Simulator Training, Sole-Source Contract Raises Concerns
Contract Overview
Contract Amount: $238,232,900 ($238.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-07-01
End Date: 2028-03-17
Contract Duration: 2,451 days
Daily Burn Rate: $97.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F-15 SIMULATORS MISSION TRAINING CENTER FOLLOW ON SECTION 889
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $238.2 million to THE BOEING COMPANY for work described as: F-15 SIMULATORS MISSION TRAINING CENTER FOLLOW ON SECTION 889 Key points: 1. Significant investment in critical F-15 mission training capabilities. 2. Sole-source award to Boeing, the incumbent, limits competitive pricing. 3. Potential for overpayment due to lack of competition. 4. Sector context: Defense aviation training systems are complex and often awarded to incumbents.
Value Assessment
Rating: questionable
The contract value of $238M for F-15 simulator follow-on training is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives or previous contracts for similar systems.
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 approach bypasses the competitive process, potentially leading to higher prices and reduced innovation as there is no market pressure to offer the best value.
Taxpayer Impact: Taxpayers may be paying a premium for this training system due to the absence of competitive bidding, which is a common concern with sole-source procurements.
Public Impact
Ensures continued readiness for F-15 fighter pilots through advanced simulation. Supports the operational capabilities of a key Air Force asset. Potential for taxpayer funds to be used inefficiently due to lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Positive Signals
- Ensures critical training capability
- Supports F-15 fleet readiness
Sector Analysis
The defense sector, particularly for specialized training systems like flight simulators, often sees incumbent contractors like Boeing secure follow-on contracts. Benchmarks for similar simulator contracts are highly variable based on complexity and technology.
Small Business Impact
The data does not indicate any specific provisions or subcontracting goals for small businesses in this contract. The award to a large prime contractor like Boeing suggests limited direct opportunities for small businesses unless they are part of Boeing's supply chain.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring that the pricing is fair and reasonable, and that future requirements are evaluated for competitive potential to maximize value for taxpayers.
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 competition.
- Potential for inflated pricing.
- Lack of transparency in price negotiation.
- Risk of vendor lock-in.
- Limited opportunities for small business participation.
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 $238.2 million to THE BOEING COMPANY. F-15 SIMULATORS MISSION TRAINING CENTER FOLLOW ON SECTION 889
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 $238.2 million.
What is the period of performance?
Start: 2021-07-01. End: 2028-03-17.
What is the justification for awarding this contract sole-source, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities or the need for compatibility with existing systems, often favoring the incumbent. To ensure fair and reasonable pricing, the agency likely conducted a price analysis based on historical data, cost proposals, and market research, though the absence of competition inherently limits the rigor of this assessment.
What are the risks associated with relying solely on Boeing for F-15 simulator training follow-on support?
The primary risk is financial: without competition, Boeing faces less pressure to offer competitive pricing, potentially leading to higher costs for the Air Force and taxpayers. There's also a risk of vendor lock-in, where transitioning to a different provider in the future could be prohibitively expensive or complex, hindering technological advancement.
How does this contract contribute to the overall effectiveness and readiness of the F-15 fleet?
This contract is crucial for maintaining the operational effectiveness and readiness of the F-15 fleet by providing essential mission training capabilities. Advanced simulators allow pilots to practice complex scenarios, hone combat skills, and maintain proficiency in a safe and cost-effective environment, directly supporting the Air Force's ability to execute its mission.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT 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 JAMES S 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: $241,565,489
Exercised Options: $241,113,560
Current Obligation: $238,232,900
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $6,107,694
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-07-01
Current End Date: 2028-03-17
Potential End Date: 2028-03-17 00:00:00
Last Modified: 2025-12-23
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