Boeing awarded $114.6M F-15EX services task order by Air Force, extending through late 2026

Contract Overview

Contract Amount: $114,636,312 ($114.6M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2024-04-01

End Date: 2026-12-31

Contract Duration: 1,004 days

Daily Burn Rate: $114.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F-15EX SERVICES TASK ORDER

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $114.6 million to THE BOEING COMPANY for work described as: F-15EX SERVICES TASK ORDER Key points: 1. Task order focuses on essential services for the F-15EX aircraft, indicating ongoing support needs. 2. Sole-source award to Boeing, the original equipment manufacturer, suggests a lack of viable alternatives for specialized support. 3. The contract's duration of over two years points to a sustained requirement for F-15EX operational readiness. 4. Fixed-price contract type aims to control costs, but the absence of competition may limit price negotiation. 5. The award falls under aircraft manufacturing NAICS code, aligning with the core business of the prime contractor. 6. This award represents a significant investment in maintaining and supporting a key component of the Air Force's fighter fleet.

Value Assessment

Rating: fair

This task order for F-15EX services is a sole-source award to the prime contractor, The Boeing Company. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The fixed-price nature of the contract provides some cost certainty, but the lack of competition raises questions about whether the government is achieving the best possible value for the services rendered. Further analysis would require access to detailed cost breakdowns and comparisons with historical F-15 support contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to The Boeing Company. As the original manufacturer of the F-15EX aircraft, Boeing is likely the only entity capable of providing the specialized services required for its maintenance and support. The absence of a competitive process means that the government did not benefit from multiple bids, which could have driven down prices or offered innovative solutions. This approach is typically used when only one source can fulfill the requirement.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition. Without bids from other potential providers, there is less pressure on Boeing to offer the most cost-effective solution, potentially leading to higher overall spending.

Public Impact

The U.S. Air Force benefits from continued operational readiness and sustainment of its F-15EX fighter aircraft. This contract ensures the availability of critical support services, including maintenance, logistics, and technical assistance for the F-15EX fleet. The geographic impact is primarily centered around Air Force bases where F-15EX aircraft are stationed and maintained. The contract supports a workforce within The Boeing Company involved in aircraft services and sustainment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits opportunities for price discovery and potentially leads to higher costs for taxpayers.
Lack of competition may reduce incentives for the contractor to innovate or offer cost-saving efficiencies.
Dependence on a single contractor for critical aircraft services poses a long-term risk if performance issues arise.

Positive Signals

Fixed-price contract type provides a degree of cost predictability for the government.
Awarding services to the original equipment manufacturer ensures specialized knowledge and expertise are applied to F-15EX support.
The contract duration indicates a commitment to maintaining the operational readiness of a key Air Force asset.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, complex technological requirements, and significant government investment. Contracts for aircraft manufacturing and support, like this one for the F-15EX, are substantial and often awarded to a limited number of prime contractors. The F-15EX is a modern variant of a long-standing fighter platform, and its sustainment requires specialized knowledge and infrastructure. Spending in this area is critical for maintaining national defense capabilities and ensuring the longevity of advanced military assets.

Small Business Impact

This contract does not appear to involve small business set-asides, as it is a sole-source award to a large prime contractor, The Boeing Company. There is no explicit indication of subcontracting opportunities for small businesses within the provided data. The focus is on direct services provided by Boeing for the F-15EX aircraft. Further investigation into Boeing's subcontracting plans would be necessary to assess any potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, specifically the contracting and program management offices responsible for the F-15EX program. Accountability measures are inherent in the fixed-price contract type, which obligates Boeing to deliver specified services within agreed-upon terms. Transparency may be limited due to the sole-source nature of the award, but contract performance metrics and reporting requirements would be subject to standard government oversight procedures. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

F-15EX Program Support
Air Force Aircraft Maintenance Contracts
Defense Contractor Services
Fighter Aircraft Sustainment

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns (though mitigated by fixed-price)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $114.6 million to THE BOEING COMPANY. F-15EX SERVICES TASK ORDER

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 $114.6 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-12-31.

What is The Boeing Company's track record with F-15 program support contracts?

The Boeing Company has a long-standing history as the prime contractor for the F-15 family of aircraft, including manufacturing and sustainment. Their track record with F-15 program support contracts is extensive, spanning decades. This includes providing maintenance, repair, overhaul (MRO), logistics support, and upgrades for various F-15 variants operated by the U.S. Air Force and international partners. While generally considered experienced and capable, specific performance metrics and any past issues related to delivery timelines, cost overruns, or quality on previous F-15 support contracts would require a deeper dive into historical contract data and performance reviews. However, their continued role as the sole source for new F-15EX services suggests a continued confidence in their capabilities by the Air Force.

How does the value of this task order compare to other F-15EX related contracts?

The value of this specific task order, at $114.6 million, represents a significant but not necessarily outlier amount for sustainment services of a major weapon system like the F-15EX. The F-15EX program itself involves substantial investment, including aircraft procurement and associated long-term support. Comparing this single task order requires context of the overall F-15EX lifecycle cost. Other contracts may cover aircraft production, initial fielding, training systems, or different categories of sustainment (e.g., depot-level maintenance, spare parts procurement). Without a comprehensive view of all F-15EX contracts, it's challenging to definitively state if this $114.6M is high or low relative to the entire program's spending, but it aligns with the expected costs for comprehensive service support over a multi-year period for a modern fighter jet.

What are the primary risks associated with this sole-source award for F-15EX services?

The primary risks associated with this sole-source award are centered around cost and performance. Without competition, there is a reduced incentive for The Boeing Company to offer the most competitive pricing, potentially leading to higher costs for the government than if multiple bids were solicited. This lack of price discovery means taxpayers may not be receiving the best value. Furthermore, reliance on a single provider for critical services creates a dependency; any performance issues, delays, or disruptions from Boeing could directly impact the operational readiness of the F-15EX fleet. There's also a risk of vendor lock-in, making it difficult and costly to switch providers in the future, even if performance declines.

How effective is the fixed-price contract type in managing costs for these F-15EX services?

The fixed-price contract type is generally effective in managing costs by shifting the risk of cost overruns to the contractor, The Boeing Company. This means that Boeing is obligated to perform the specified services for the agreed-upon price, regardless of their actual costs. This provides the government with cost certainty and predictability, as the total expenditure is known upfront. However, the effectiveness is somewhat diminished in a sole-source environment. While the price is fixed, the absence of competition means this fixed price might be higher than it would be in a competitive scenario. The government still benefits from knowing the total cost, but the potential for achieving the lowest possible fixed price is limited without competitive pressure.

What are the historical spending patterns for F-15 sustainment and support by the Department of Defense?

Historical spending patterns for F-15 sustainment and support by the Department of Defense have consistently represented a significant portion of the Air Force's aviation budget. Over the decades, the F-15 program has required substantial investment in maintenance, upgrades, spare parts, and contractor logistics support to maintain fleet readiness. This spending has evolved with aircraft modernization efforts, such as the transition to the F-15EX. While specific annual figures fluctuate based on operational tempo, modernization initiatives, and contract awards, the overall trend indicates a sustained and substantial financial commitment to keeping the F-15 fleet operational. The introduction of new variants like the F-15EX necessitates continued, albeit potentially different, sustainment spending compared to older models.

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: 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: $245,947,397

Exercised Options: $245,947,397

Current Obligation: $114,636,312

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $2,180,803

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