Boeing Awarded $1.12 Billion for F-15EX Lot 2 Long Lead-Items by Air Force

Contract Overview

Contract Amount: $1,116,213,124 ($1.1B)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2021-07-28

End Date: 2027-12-31

Contract Duration: 2,347 days

Daily Burn Rate: $475.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F15EX LOT 2 LONG LEAD-ITEMS

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $1.12 billion to THE BOEING COMPANY for work described as: F15EX LOT 2 LONG LEAD-ITEMS Key points: 1. Significant investment in advanced fighter jet production. 2. Sole-source award to Boeing raises questions about competition. 3. Long lead-time procurement suggests critical program phase. 4. Aircraft manufacturing sector sees substantial contract.

Value Assessment

Rating: questionable

The contract value of $1.12 billion for long lead-time items is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to potential alternatives or previous F-15 production runs.

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 and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this significant contract could lead to higher expenditures than necessary, impacting the efficient use of taxpayer funds.

Public Impact

Modernization of the Air Force's fighter fleet. Support for advanced aerospace manufacturing jobs. Potential for long-term sustainment and upgrade costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
High contract value

Positive Signals

Supports critical defense capability
Long-term production run

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, a key component of the aerospace and defense industry. Spending benchmarks for similar sole-source procurements of advanced military aircraft components can vary widely based on technological complexity and program maturity.

Small Business Impact

The contract data does not indicate any specific provisions or set-asides for small businesses. As a sole-source award to a large prime contractor, direct small business participation is unlikely to be a primary focus of this specific contract action.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and program execution. The Department of the Air Force should provide justification for the lack of competition and monitor contract performance diligently.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competitive bidding
Potential for cost overruns
Sole-source dependency
Limited transparency in pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $1.12 billion to THE BOEING COMPANY. F15EX LOT 2 LONG LEAD-ITEMS

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 $1.12 billion.

What is the period of performance?

Start: 2021-07-28. End: 2027-12-31.

What is the justification for awarding this contract on a sole-source basis rather than through a competitive process?

The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or the need for rapid procurement to meet urgent requirements. For the F-15EX, it might relate to specific production lines, specialized tooling, or integration with existing systems that only Boeing possesses, thereby precluding effective competition.

What are the potential risks associated with a sole-source award of this magnitude for long lead-time items?

The primary risks include inflated pricing due to the absence of competitive pressure, potential for schedule delays if the sole provider faces internal issues, and reduced incentive for innovation. There's also a risk that the government becomes overly reliant on a single supplier, limiting future negotiation leverage.

How does this long lead-time item procurement contribute to the overall effectiveness and readiness of the F-15EX program?

Procuring long lead-time items ensures that critical components with extended manufacturing cycles are ordered well in advance. This proactive approach is essential for maintaining the production schedule of the F-15EX, ultimately contributing to the Air Force's fleet modernization goals and operational readiness.

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

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: $1,117,072,378

Exercised Options: $1,117,072,378

Current Obligation: $1,116,213,124

Subaward Activity

Number of Subawards: 348

Total Subaward Amount: $248,318,890

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA863420D2704

IDV Type: IDC

Timeline