DoD Awards Boeing $6.98 Billion for F-15QA Air Vehicle Development
Contract Overview
Contract Amount: $6,978,627,396 ($7.0B)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2017-12-22
End Date: 2027-08-31
Contract Duration: 3,539 days
Daily Burn Rate: $2.0M/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F-15, FMS, F-15QA AIR VEHICLE DEVELOPMENT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $6.98 billion to THE BOEING COMPANY for work described as: F-15, FMS, F-15QA AIR VEHICLE DEVELOPMENT Key points: 1. Significant investment in advanced fighter jet development. 2. Sole-source contract awarded to The Boeing Company. 3. Long-term contract duration of 3,539 days. 4. Focus on aircraft manufacturing within the defense sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. The total award amount is substantial, and without competitive bidding, it's difficult to assess if this represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and potentially increases costs for the government.
Taxpayer Impact: The substantial value of this contract represents a significant taxpayer investment in advanced military aircraft.
Public Impact
Enhances U.S. air superiority capabilities. Supports advanced fighter jet technology and production. Potential for job creation in the aerospace sector. Contributes to international defense partnerships (FMS).
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type carries cost overrun risk.
- Long contract duration increases exposure to market fluctuations.
Positive Signals
- Acquisition of advanced military hardware.
- Supports a key defense contractor.
- Potential for technological advancements in aircraft.
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a critical component of the defense industry. Spending benchmarks for similar large-scale defense development contracts are typically in the billions.
Small Business Impact
The contract data indicates no specific set-aside for small businesses, and the prime contractor is a large corporation. This suggests limited direct opportunities for small businesses on this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure cost controls and performance meet expectations. Regular reporting and audits will be crucial for accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration
- High total award amount
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 $6.98 billion to THE BOEING COMPANY. F-15, FMS, F-15QA AIR VEHICLE DEVELOPMENT
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 $6.98 billion.
What is the period of performance?
Start: 2017-12-22. End: 2027-08-31.
What specific technological advancements are being pursued under this F-15QA development contract, and how do they justify the sole-source award?
The F-15QA program focuses on developing advanced capabilities for Qatar's F-15 fleet, including enhanced avionics, weapons systems, and potentially reduced radar cross-section. The sole-source award is likely justified by the need for specialized knowledge and integration with existing F-15 platforms, which Boeing possesses as the original manufacturer. However, a detailed justification for the lack of competition and its impact on cost-effectiveness should be publicly available.
What are the primary risks associated with the Cost Plus Fixed Fee contract type for this large-scale defense development program?
The primary risks of a Cost Plus Fixed Fee (CPFF) contract for a program of this magnitude include potential cost overruns, as the contractor is reimbursed for actual costs plus a fixed fee. This can incentivize less efficient cost management. Additionally, the government bears the risk of unforeseen technical challenges or scope creep, which can significantly increase the total contract value beyond initial projections.
How will the effectiveness of the F-15QA air vehicle development be measured, and what are the key performance indicators?
Effectiveness will likely be measured against stringent performance specifications outlined in the contract, covering aspects like flight envelope, payload capacity, sensor performance, and survivability. Key performance indicators (KPIs) would include successful completion of developmental test flights, integration of specified avionics and weapon systems, and achievement of target operational capabilities. Independent government testing and validation will be crucial to confirm the effectiveness of the developed air vehicle.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
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: $8,443,763,839
Exercised Options: $7,285,613,839
Current Obligation: $6,978,627,396
Subaward Activity
Number of Subawards: 1843
Total Subaward Amount: $2,904,606,353
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-12-22
Current End Date: 2027-08-31
Potential End Date: 2027-08-31 00:00:00
Last Modified: 2025-12-19
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