DoD Awards $1.02 Billion to Boeing for F-15SA Block Cycle Upgrades
Contract Overview
Contract Amount: $102,473,474 ($102.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-01-30
End Date: 2031-12-29
Contract Duration: 2,524 days
Daily Burn Rate: $40.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F-15SA BLOCK CYCLE UPGRADES 3
Plain-Language Summary
Department of Defense obligated $102.5 million to THE BOEING COMPANY for work described as: F-15SA BLOCK CYCLE UPGRADES 3 Key points: 1. Significant investment in advanced fighter jet capabilities. 2. Sole reliance on Boeing highlights potential single-source dependency. 3. Long-term contract (2025-2031) indicates sustained program needs. 4. Cost-plus-fixed-fee contract structure may incentivize cost escalation.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to higher costs compared to fixed-price contracts if not managed carefully. Benchmarking against similar complex aircraft upgrade programs is difficult without more detailed cost breakdowns.
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 competitive pressure, potentially leading to higher costs for the government.
Taxpayer Impact: The lack of competition for this substantial contract raises concerns about taxpayer value and whether a more competitive process could have yielded better pricing.
Public Impact
Enhances the operational readiness and capabilities of the F-15SA fleet. Supports advanced avionics, weapons integration, and structural enhancements. Contributes to maintaining air superiority and national security. Potential for job creation within the aerospace manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Long contract duration
- Lack of transparency in cost drivers
Positive Signals
- Upgrades critical defense asset
- Supports advanced technology integration
- Ensures continued operational capability
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing and sustainment. Spending on major aircraft upgrades is typical for maintaining a modern air force, but the scale and sole-source nature warrant scrutiny.
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 award, which could be a missed opportunity for economic inclusion.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of the Air Force to ensure costs are reasonable and performance meets requirements. Auditing of cost-plus contracts is crucial for accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Cost-plus contract type risk
- Potential for cost overruns
- Long-term vendor lock-in
- Limited transparency on specific upgrade details
Tags
aircraft-manufacturing, department-of-defense, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $102.5 million to THE BOEING COMPANY. F-15SA BLOCK CYCLE UPGRADES 3
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 $102.5 million.
What is the period of performance?
Start: 2025-01-30. End: 2031-12-29.
What specific technical advancements justify the sole-source award and the significant cost?
The specific technical advancements are not detailed in the provided data. However, F-15SA upgrades typically involve integrating next-generation avionics, enhanced electronic warfare capabilities, and potentially structural improvements to extend the aircraft's service life. Justifying a sole-source award often relies on unique capabilities, proprietary technology, or the contractor's established expertise with the specific platform, which may be deemed essential for seamless integration and minimal program risk.
How will the government ensure cost control and value for money under this Cost Plus Fixed Fee contract?
The government will likely employ stringent oversight mechanisms, including detailed cost audits, performance monitoring, and regular reviews of contractor expenditures. Establishing realistic fixed fee targets based on thorough cost analysis and negotiating clear performance metrics are crucial. The contracting officer must actively manage the contract to prevent scope creep and ensure that all costs incurred are reasonable, allocable, and necessary for the contract's objectives.
What are the long-term strategic implications of relying solely on Boeing for F-15SA upgrades?
Sole reliance on Boeing for F-15SA upgrades creates a dependency that could limit future negotiation leverage and potentially stifle innovation from other industry players. It also concentrates program risk with a single entity. Strategically, the Air Force should consider developing a long-term plan that might include fostering competition for future upgrade phases or exploring alternative platforms to mitigate risks associated with single-source provider dependence.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA863425RB001
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: $120,069,524
Exercised Options: $102,473,474
Current Obligation: $102,473,474
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $2,433,631
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA863421D2703
IDV Type: IDC
Timeline
Start Date: 2025-01-30
Current End Date: 2031-12-29
Potential End Date: 2031-12-29 00:00:00
Last Modified: 2026-03-19
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)