DoD Awards Boeing $2.04B for F-15EX Advanced Procurement, Lot 4
Contract Overview
Contract Amount: $2,039,776,433 ($2.0B)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-09-29
End Date: 2031-12-31
Contract Duration: 3,380 days
Daily Burn Rate: $603.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F-15EX - LOT 4 ADVANCED PROCUREMENT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $2.04 billion to THE BOEING COMPANY for work described as: F-15EX - LOT 4 ADVANCED PROCUREMENT Key points: 1. Significant investment in advanced fighter jet capabilities. 2. Sole-source award to Boeing raises questions about competition. 3. Long-term contract duration (through 2031) warrants close monitoring. 4. High value contract in the aerospace and defense sector.
Value Assessment
Rating: questionable
The contract value of $2.04 billion for advanced procurement is substantial. Benchmarking against similar advanced procurement contracts for major defense platforms is difficult due to the specific nature of F-15EX upgrades and the sole-source award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to The Boeing Company. The lack of competition limits price discovery and potentially increases costs for the government.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not benefit from competitive pricing, potentially leading to higher overall expenditure for the F-15EX program.
Public Impact
Modernization of the Air Force's fighter fleet. Potential impact on aerospace manufacturing jobs. Sustained government reliance on a single prime contractor for critical aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Long contract duration.
- High dollar value.
Positive Signals
- Supports advanced fighter jet capabilities.
- Long-term production run for F-15EX.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically aircraft manufacturing. Spending benchmarks for advanced procurement of major weapon systems are typically in the billions, reflecting the complexity and cost of development and production.
Small Business Impact
The contract is awarded to a large prime contractor, The Boeing Company. There is no explicit information provided regarding subcontracting opportunities for small businesses within this specific advanced procurement award.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight will be critical to ensure cost control, performance, and adherence to contract terms throughout the multi-year duration of this advanced procurement.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may lead to higher costs.
- Long-term contract duration increases exposure to price changes.
- Potential for cost overruns in advanced procurement.
- Dependence on a single supplier for critical defense assets.
Tags
aircraft-manufacturing, department-of-defense, mo, delivery-order, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.04 billion to THE BOEING COMPANY. F-15EX - LOT 4 ADVANCED PROCUREMENT
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 $2.04 billion.
What is the period of performance?
Start: 2022-09-29. End: 2031-12-31.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or a lack of viable alternatives. The Air Force should provide detailed documentation supporting this decision. To ensure fair pricing, robust negotiation strategies, independent cost estimates, and potentially post-award audits are crucial to mitigate the risks associated with limited competition.
How does the F-15EX advanced procurement align with the overall Air Force modernization strategy and future threat landscape?
The F-15EX is intended to modernize the Air Force's fighter fleet, providing advanced capabilities to counter evolving threats. This procurement supports the F-15EX program's role in the future force structure, potentially complementing other platforms like the F-22 and F-35. Its effectiveness will depend on integration, survivability, and mission relevance against near-peer adversaries.
What are the long-term cost implications of this sole-source contract, considering potential sustainment and upgrade costs?
Sole-source contracts can lead to higher long-term costs due to the absence of competitive pressure. Beyond the initial procurement, sustainment, maintenance, and future upgrade costs could be inflated. The government needs a comprehensive lifecycle cost analysis and a strategy for introducing competition in later phases or for follow-on contracts to manage these risks.
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: $2,147,388,288
Exercised Options: $2,111,588,096
Current Obligation: $2,039,776,433
Subaward Activity
Number of Subawards: 696
Total Subaward Amount: $669,964,552
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
Start Date: 2022-09-29
Current End Date: 2031-12-31
Potential End Date: 2031-12-31 00:00:00
Last Modified: 2025-12-17
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