Air Force awards $11.75M to Boeing for F15 Advanced Display Core Processor II Video Situational Display Replacement
Contract Overview
Contract Amount: $11,752,927 ($11.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-09-27
End Date: 2023-06-30
Contract Duration: 1,372 days
Daily Burn Rate: $8.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F15, NON-ACAT, NON-ADVANCED DISPLAY CORE PROCESSOR II VIDEO SITUATIONAL DISPLAY REPLACEMENT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $11.8 million to THE BOEING COMPANY for work described as: F15, NON-ACAT, NON-ADVANCED DISPLAY CORE PROCESSOR II VIDEO SITUATIONAL DISPLAY REPLACEMENT Key points: 1. Boeing secured a significant contract for critical aircraft components. 2. The sole-source nature raises questions about price discovery and competition. 3. Potential risks include vendor lock-in and limited market alternatives. 4. Spending aligns with the defense sector's focus on avionics upgrades.
Value Assessment
Rating: questionable
The contract value of $11.75M for a specific aircraft component replacement appears high given the lack of competition. Without comparative data from similar sole-source procurements, it's difficult to definitively assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method limits price discovery and may result in higher costs for taxpayers compared to a fully competed procurement.
Taxpayer Impact: The sole-source award potentially leads to higher taxpayer costs due to the absence of competitive pressure to reduce prices.
Public Impact
Ensures continued operational capability for F15 aircraft. Supports advanced situational awareness for pilots. Maintains readiness of a key Air Force fighter fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential for F15 operational readiness
- Supports advanced pilot capabilities
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft component upgrades. Spending benchmarks for similar sole-source avionics procurements are difficult to establish due to their unique nature.
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 sole-source delivery order.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price paid is fair and reasonable. Further oversight may be needed to understand the justification for not pursuing competition.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in price justification.
- Dependency on a single supplier.
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 $11.8 million to THE BOEING COMPANY. F15, NON-ACAT, NON-ADVANCED DISPLAY CORE PROCESSOR II VIDEO SITUATIONAL DISPLAY REPLACEMENT
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 $11.8 million.
What is the period of performance?
Start: 2019-09-27. End: 2023-06-30.
What is the justification for awarding this contract on a sole-source basis, and were alternative solutions explored?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of other responsible sources. For this specific contract, the Air Force likely determined that only Boeing could provide the required Advanced Display Core Processor II video situational display replacement due to specific technical requirements or existing system integration. Further documentation would be needed to confirm the exact rationale and explore if any alternative approaches were considered.
How does the unit cost compare to similar sole-source procurements for advanced display systems in other aircraft?
Benchmarking the unit cost for this sole-source contract is challenging without access to proprietary pricing data from comparable sole-source procurements. Generally, sole-source contracts tend to be higher than competed ones due to the lack of competitive pressure. A detailed cost analysis by the agency would be necessary to determine if the price paid is fair and reasonable relative to the specific technology and market conditions.
What is the long-term impact on F15 fleet readiness and modernization if this component is not competitively sourced?
The long-term impact of not competitively sourcing this critical component could include sustained higher costs for sustainment and potential supply chain risks if Boeing faces production issues. While ensuring immediate readiness, the lack of competition might hinder future innovation and cost-efficiency in upgrading the F15 fleet's display systems over their lifecycle.
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
Solicitation ID: FA863418R0011
Pricing Type: FIRM FIXED PRICE (J)
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: $13,015,478
Exercised Options: $11,752,927
Current Obligation: $11,752,927
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $8,547,398
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: 2019-09-27
Current End Date: 2023-06-30
Potential End Date: 2023-06-30 00:00:00
Last Modified: 2025-11-07
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