DoD Awards $1.29B F-15 Contract to Boeing for Undefinitized Action
Contract Overview
Contract Amount: $1,293,601,123 ($1.3B)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2028-12-29
End Date: 2028-11-30
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F-15/NO ACAT/JAPAN/UNDEFINITIZED CONTRACT ACTION
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $1.29 billion to THE BOEING COMPANY for work described as: F-15/NO ACAT/JAPAN/UNDEFINITIZED CONTRACT ACTION Key points: 1. Significant award to a single, established prime contractor. 2. Undefinitized contract action suggests potential for future negotiation and cost adjustments. 3. Focus on aircraft manufacturing indicates a critical defense sector. 4. Lack of competition raises questions about price discovery and value. 5. Long-term contract duration extends potential financial exposure.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. As an undefinitized contract action, the final pricing is not yet established, making a definitive value assessment difficult. Benchmarking is challenging without a defined scope and finalized price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION', indicating a sole-source or limited competition scenario. This lack of competitive pressure may lead to higher prices than could be achieved through an open bidding process.
Taxpayer Impact: The absence of competition and the undefinitized nature of the contract action limit transparency and potentially increase costs for taxpayers.
Public Impact
Ensures continued support and modernization of the F-15 fleet. Supports jobs within the aerospace manufacturing sector, particularly in Missouri. Potential for cost increases due to the undefinitized contract status. Long-term commitment to a specific aircraft platform.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Undefinitized Contract Action (UCA)
- Lack of Competition
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Supports critical defense capability
- Award to established prime contractor
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is typically high due to the complex nature of military aircraft and long development cycles. Benchmarks are difficult without specific program details, but large sole-source awards are common for specialized defense platforms.
Small Business Impact
The data indicates the prime contractor is The Boeing Company, a large business. There is no information provided regarding subcontracting opportunities for small businesses within this specific contract action.
Oversight & Accountability
The use of an undefinitized contract action requires robust oversight to ensure the eventual definitization results in a fair and reasonable price. The Department of the Air Force will need to monitor costs closely throughout the contract performance period.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost growth due to UCA
- Limited competition may inflate price
- CPFF structure can incentivize higher costs
- Long contract duration increases exposure
- Lack of detailed scope in initial award
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 $1.29 billion to THE BOEING COMPANY. F-15/NO ACAT/JAPAN/UNDEFINITIZED CONTRACT ACTION
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 $1.29 billion.
What is the period of performance?
Start: 2028-12-29. End: 2028-11-30.
What is the primary justification for the lack of competition on this F-15 contract?
The justification for limited or no competition typically stems from factors such as unique technical requirements, existing platform integration, urgent need, or the proprietary nature of the technology involved. For major defense platforms like the F-15, continuing with the original manufacturer is often deemed necessary for interoperability and sustainment, though this should be rigorously justified.
What are the potential financial risks associated with an undefinitized contract action (UCA)?
UCAs carry significant financial risk because the final price and scope are not fully defined at the outset. The government agrees to pay costs plus a fee, but the ceiling price and definitive terms are negotiated later. This can lead to the contractor incurring costs before final agreement, potentially resulting in higher-than-anticipated final prices or disputes during definitization.
How does the Cost Plus Fixed Fee (CPFF) contract type impact cost control and taxpayer value?
CPFF contracts aim to provide the contractor with a predetermined profit margin, theoretically encouraging efficiency. However, they can also incentivize cost increases, as the fee is a percentage of the total cost. This structure requires strong government oversight to prevent unnecessary spending and ensure the fixed fee remains reasonable relative to the effort involved.
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
Solicitation ID: FA863422R2705
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JAMES S 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: $1,752,597,728
Exercised Options: $1,530,326,061
Current Obligation: $1,293,601,123
Subaward Activity
Number of Subawards: 175
Total Subaward Amount: $390,992,289
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2028-12-29
Current End Date: 2028-11-30
Potential End Date: 2028-11-30 00:00:00
Last Modified: 2025-12-18
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