DoD's $1.4B F-15 Radar Buy: Boeing Secures Sole-Source Contract Amidst ACAT II Program
Contract Overview
Contract Amount: $1,399,773,518 ($1.4B)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2015-10-30
End Date: 2026-06-30
Contract Duration: 3,896 days
Daily Burn Rate: $359.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: F-15; ACAT II: RMP/V3 COMBINED RADAR BUY FY15
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $1.40 billion to THE BOEING COMPANY for work described as: F-15; ACAT II: RMP/V3 COMBINED RADAR BUY FY15 Key points: 1. Significant investment in critical aircraft modernization. 2. Sole-source award to Boeing raises questions about competition and price. 3. Long contract duration (3896 days) implies substantial program lifecycle. 4. Focus on fixed-price incentive contract type suggests shared risk. 5. Aircraft Manufacturing sector sees substantial DoD spending.
Value Assessment
Rating: questionable
The contract value of $1.4 billion for F-15 radar systems is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar advanced radar systems or alternative solutions.
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 leads to higher costs for taxpayers as there was no market pressure to drive down prices.
Taxpayer Impact: The lack of competition in this large procurement may result in taxpayers paying a premium for the F-15 radar systems.
Public Impact
Modernization of the F-15 fleet ensures continued air superiority capabilities. Long-term contract provides stability for a key defense contractor. Potential for cost overruns due to sole-source nature requires close monitoring. Impact on the aerospace manufacturing sector in Missouri.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Critical defense system upgrade
- Fixed-price incentive contract type
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a significant area of defense spending. Benchmarks for similar large-scale avionics or radar system procurements are often difficult to establish due to unique system requirements and proprietary technologies.
Small Business Impact
The contract data indicates that small businesses were not directly involved as prime contractors in this specific procurement. Further analysis would be needed to determine if small businesses are participating as subcontractors to The Boeing Company.
Oversight & Accountability
Given the sole-source nature and significant value, robust oversight by the Department of the Air Force is crucial to manage costs, ensure performance, and verify the necessity of the procurement throughout its extended duration.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Long contract duration increases risk of cost escalation and scope creep.
- Lack of transparency in pricing due to non-competitive nature.
- Potential for contractor lock-in with specialized technology.
Tags
aircraft-manufacturing, department-of-defense, mo, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.40 billion to THE BOEING COMPANY. F-15; ACAT II: RMP/V3 COMBINED RADAR BUY FY15
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 $1.40 billion.
What is the period of performance?
Start: 2015-10-30. End: 2026-06-30.
What specific factors justified the sole-source award for the F-15 radar systems, and were alternatives thoroughly explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For the F-15 radar, this could stem from specific integration challenges with the existing airframe or unique performance specifications. A thorough review would involve documenting why other potential sources, including upgrades to existing systems or alternative technologies, were deemed unsuitable or less advantageous.
How will the fixed-price incentive contract structure mitigate potential cost overruns given the long duration and sole-source nature?
A fixed-price incentive (FPI) contract aims to control costs by establishing target costs, target profits, and share ratios for cost variances. If Boeing incurs costs above the target, both the government and the contractor share the excess cost. Conversely, if costs are below the target, profits are shared. This structure incentivizes the contractor to manage costs effectively, but close government monitoring of performance and cost reporting is still essential, especially over a long program lifecycle.
What is the projected impact of this radar upgrade on the F-15's operational effectiveness and survivability in modern threat environments?
Modern radar systems significantly enhance a fighter jet's situational awareness, target detection range, tracking capabilities, and electronic warfare resilience. For the F-15, an upgraded radar is expected to improve its ability to identify and engage threats at longer distances, operate more effectively in contested airspace, and potentially counter advanced enemy electronic countermeasures, thereby extending the platform's relevance and survivability.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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: $1,437,659,285
Exercised Options: $1,413,058,341
Current Obligation: $1,399,773,518
Actual Outlays: $34,325,690
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-10-30
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-12-16
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