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: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft 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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