DoD Awards $32.3M F-15 ADCP II LRIP 1 to Boeing, Raising Oversight Concerns
Contract Overview
Contract Amount: $32,281,414 ($32.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2017-09-28
End Date: 2024-09-30
Contract Duration: 2,559 days
Daily Burn Rate: $12.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ACAT I F15 ADCP II LRIP 1 (VAL VER)
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $32.3 million to THE BOEING COMPANY for work described as: ACAT I F15 ADCP II LRIP 1 (VAL VER) Key points: 1. Significant contract value awarded to a single, established prime contractor. 2. Lack of competition raises questions about price discovery and potential overspending. 3. Long contract duration (2559 days) may indicate complex development or sustainment needs. 4. Focus on aircraft manufacturing within the defense sector.
Value Assessment
Rating: questionable
The contract value of $32.3M for LRIP 1 is difficult to assess without specific unit cost data. Given the 'NOT COMPETED' status and sole-source award to Boeing, there's a risk that the pricing may not reflect competitive market rates.
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 mechanisms and potentially leads to higher costs for the government compared to a competitive environment.
Taxpayer Impact: The lack of competition in this sole-source award could result in taxpayers paying a premium for the F-15 ADCP II system.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The F-15 program's long-term sustainment costs could be impacted by this award. Potential for reduced innovation if alternative solutions are not explored.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Award to established prime contractor
- Supports critical defense platform
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending benchmarks for similar sole-source development or low-rate initial production contracts for major weapon systems are typically high, but the absence of competition makes direct comparison challenging.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication that small businesses were involved in this specific award, nor is there information on subcontracting opportunities.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective program execution. Transparency regarding the justification for not competing the contract is crucial for accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for cost overruns due to limited oversight.
- Long contract duration may mask inefficiencies.
- Limited transparency on pricing justification.
- No clear small business participation noted.
Tags
aircraft-manufacturing, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.3 million to THE BOEING COMPANY. ACAT I F15 ADCP II LRIP 1 (VAL VER)
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 $32.3 million.
What is the period of performance?
Start: 2017-09-28. End: 2024-09-30.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. To ensure fair pricing, the government should conduct rigorous cost and price analyses, potentially using historical data, should-cost modeling, or independent government cost estimates. Regular reviews and audits are also essential to monitor performance and costs throughout the contract's lifecycle.
What are the specific risks associated with a sole-source contract for a major defense acquisition program like the F-15 ADCP II?
Sole-source contracts for major defense programs carry inherent risks, including the potential for inflated costs due to lack of competition, reduced incentive for contractor efficiency, and limited opportunities for technological innovation from alternative providers. There's also a risk of vendor lock-in, making future program adjustments or transitions more difficult and expensive. Furthermore, without competitive pressure, the contractor may have less incentive to proactively address performance issues or explore cost-saving measures.
How does this contract contribute to the overall effectiveness and modernization of the F-15 fleet?
This contract, identified as LRIP 1 (Low-Rate Initial Production 1) for the F-15 ADCP II (Advanced Display Core Processor II), is crucial for integrating advanced avionics and processing capabilities into the F-15 fleet. Successful execution is expected to enhance the aircraft's situational awareness, targeting capabilities, and overall combat effectiveness, ensuring the F-15 remains a relevant and potent platform in the evolving threat landscape.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
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: $32,281,414
Exercised Options: $32,281,414
Current Obligation: $32,281,414
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $11,411,411
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA863417D2696
IDV Type: IDC
Timeline
Start Date: 2017-09-28
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-11-07
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)