Boeing Awarded $91.5M for F-15 Flight Test Support, Extending Through May 2024

Contract Overview

Contract Amount: $91,469,420 ($91.5M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2018-05-24

End Date: 2024-05-31

Contract Duration: 2,199 days

Daily Burn Rate: $41.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::CT::IGF::F-15 FLIGHT TEST SUPPORT

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $91.5 million to THE BOEING COMPANY for work described as: IGF::CT::IGF::F-15 FLIGHT TEST SUPPORT Key points: 1. Significant contract value for specialized aircraft support. 2. Sole-source award to Boeing, a major defense contractor. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Focus on aircraft manufacturing and testing within the defense sector.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement plus a fixed fee. While common in R&D and complex projects, it carries inherent risk of cost escalation if not tightly managed. Benchmarking CPFF contracts in aircraft testing is challenging due to unique project scopes.

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 approach may limit price discovery and potentially lead to higher costs compared to a competitive bidding process. The justification for sole-source is not provided.

Taxpayer Impact: The absence of competition could result in taxpayers paying more than necessary for these flight test support services.

Public Impact

Ensures continued operational readiness and development of the F-15 fleet. Supports critical flight testing for aircraft upgrades and new capabilities. Maintains specialized expertise within a key defense contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price discovery.
  • Cost Plus Fixed Fee structure poses risk of cost overruns.
  • Long contract duration increases exposure to changing economic conditions.

Positive Signals

  • Supports critical national defense asset (F-15 aircraft).
  • Leverages established expertise of a major defense contractor.
  • Ensures continuity of essential flight test operations.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft manufacturing and support services. Spending in this area is often characterized by high R&D costs, long production cycles, and significant government oversight due to national security implications.

Small Business Impact

The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact on the small business sector for this specific award.

Oversight & Accountability

As a sole-source award with a CPFF structure, this contract warrants close oversight to ensure cost control and adherence to the Statement of Work. Regular performance reviews and audits would 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
  • Lack of competition
  • Potential for cost escalation

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 $91.5 million to THE BOEING COMPANY. IGF::CT::IGF::F-15 FLIGHT TEST SUPPORT

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 $91.5 million.

What is the period of performance?

Start: 2018-05-24. End: 2024-05-31.

What is the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award is critical for understanding the necessity of bypassing competitive procedures. Without this information, it's difficult to assess if the government adequately explored options for achieving better value. The absence of competition directly impacts the government's ability to leverage market forces for cost savings and innovation.

How are cost overruns managed and mitigated under the Cost Plus Fixed Fee (CPFF) structure for this F-15 flight test support contract?

The CPFF structure inherently carries a risk of cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. Effective management requires stringent cost tracking, regular performance reviews, and clear contractual limitations. The government must actively monitor expenditures against the estimated cost to prevent excessive spending and ensure the fixed fee remains appropriate.

What performance metrics are in place to ensure the effectiveness and value delivered by The Boeing Company for F-15 flight test support?

Ensuring effectiveness requires clearly defined performance metrics tied to the flight test objectives. These could include successful completion of test points, adherence to schedules, quality of data reporting, and overall contribution to aircraft readiness and upgrades. Regular performance evaluations against these metrics are essential for assessing value and contractor accountability.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingAircraft Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $104,563,076

Exercised Options: $104,551,319

Current Obligation: $91,469,420

Actual Outlays: $3,721,873

Subaward Activity

Number of Subawards: 56

Total Subaward Amount: $14,986,951

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: 2018-05-24

Current End Date: 2024-05-31

Potential End Date: 2024-05-31 00:00:00

Last Modified: 2025-11-07

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