Boeing awarded $25.2M contract for QF-16 aerial target materials and support

Contract Overview

Contract Amount: $25,240,939 ($25.2M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2021-11-19

End Date: 2026-01-09

Contract Duration: 1,512 days

Daily Burn Rate: $16.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: QF-16 FULL SCALE AERIAL TARGET LOT 6'S BLK 25 AND BLK 30 UNIQUE MATERIAL FOR DRONE PECULIAR EQUIPMENT PACKAGE, PROGRAM INTEGRATION SUPPORT, PRODUCTION LINE SUPPORT MATERIAL, AND WARRANTY FOR DRONE PECULIAR EQUIPMENT LAY-IN MATERIAL.

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $25.2 million to THE BOEING COMPANY for work described as: QF-16 FULL SCALE AERIAL TARGET LOT 6'S BLK 25 AND BLK 30 UNIQUE MATERIAL FOR DRONE PECULIAR EQUIPMENT PACKAGE, PROGRAM INTEGRATION SUPPORT, PRODUCTION LINE SUPPORT MATERIAL, AND WARRANTY FOR DRONE PECULIAR EQUIPMENT LAY-IN MATERIAL. Key points: 1. Contract focuses on unique materials, integration, and warranty for QF-16 drone equipment. 2. Sole-source award raises questions about potential price efficiencies and market alternatives. 3. Long contract duration (over 4 years) suggests a need for sustained support. 4. Firm-fixed-price structure shifts cost risk to the contractor. 5. This contract supports the Air Force's aerial target program, crucial for training. 6. Boeing's established role in aerospace suggests technical capability but warrants price scrutiny.

Value Assessment

Rating: fair

The contract value of $25.2 million for QF-16 aerial target components and support appears reasonable given the specialized nature of drone peculiar equipment and program integration. However, without comparable sole-source awards or detailed cost breakdowns, a definitive value-for-money assessment is challenging. Benchmarking against similar complex aerospace support contracts would be necessary to confirm pricing competitiveness. The firm-fixed-price nature provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, The Boeing Company, was solicited. This approach is typically used when a unique capability or proprietary technology is required, or when there is insufficient time to conduct a competitive procurement. The lack of competition means the government did not benefit from potential price reductions or innovative solutions that might arise from a bidding process.

Taxpayer Impact: The absence of competition for this sole-source award means taxpayers may not be receiving the most cost-effective solution available. Without competitive pressure, there is a risk of paying a premium for the required materials and support.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel who will utilize the QF-16 aerial targets for advanced combat training. The contract delivers essential unique materials, program integration support, production line support, and warranty services for drone peculiar equipment. The geographic impact is primarily centered around Boeing's facilities in Missouri, where the work will be performed. This contract supports a specialized segment of the aerospace manufacturing workforce involved in defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Long-term nature of the contract requires ongoing monitoring for performance and cost control.
Reliance on a single contractor for specialized drone equipment could create future dependency.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Boeing's established expertise in aerospace manufacturing suggests a high likelihood of technical success.
Contract includes warranty provisions, offering post-delivery support and defect resolution.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on unmanned aerial systems (UAS) and target drones. The market for advanced aerial targets is specialized, often dominated by a few key players with the necessary technological expertise and production capabilities. Spending in this area is driven by the military's need for realistic training platforms that simulate adversary aircraft, supporting readiness and combat effectiveness.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there explicit information regarding subcontracting opportunities for small businesses. As a sole-source award to a large prime contractor, the direct impact on the small business ecosystem is likely minimal unless Boeing actively engages small businesses for specific components or services not covered by the primary award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded within the firm-fixed-price structure, requiring Boeing to deliver specified goods and services within the agreed-upon price. Transparency may be limited due to the sole-source nature, but contract performance metrics and financial reporting should be available through government oversight channels.

Related Government Programs

QF-16 Aerial Target Program
Unmanned Aerial Systems (UAS) Procurement
Aerospace Manufacturing Contracts
Defense Training Systems
Air Force Drone Technology

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to THE BOEING COMPANY. QF-16 FULL SCALE AERIAL TARGET LOT 6'S BLK 25 AND BLK 30 UNIQUE MATERIAL FOR DRONE PECULIAR EQUIPMENT PACKAGE, PROGRAM INTEGRATION SUPPORT, PRODUCTION LINE SUPPORT MATERIAL, AND WARRANTY FOR DRONE PECULIAR EQUIPMENT LAY-IN MATERIAL.

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 $25.2 million.

What is the period of performance?

Start: 2021-11-19. End: 2026-01-09.

What is Boeing's track record with QF-16 or similar aerial target systems?

The Boeing Company has a long history in aerospace and defense, including extensive experience with unmanned aerial vehicles and target systems. While specific details on their performance with the QF-16 program prior to this award are not detailed here, their general expertise in complex aircraft manufacturing and integration suggests a strong capability. Boeing has been a significant supplier of military aircraft and related systems to the U.S. government for decades. Their involvement in drone technology spans various applications, from reconnaissance to combat. Evaluating past performance on similar sole-source or competitively awarded contracts for specialized defense equipment would provide further insight into their reliability and efficiency.

How does the $25.2 million value compare to similar aerial target contracts?

Direct comparison of the $25.2 million value is difficult without access to specific contract details and market data for comparable aerial target systems. However, the QF-16 is a modified F-16 fighter jet, indicating a high level of complexity and cost. Contracts for advanced aerial targets, especially those involving unique materials, integration, and long-term support, can range significantly. Factors influencing cost include the number of units, technological sophistication, required modifications, and the scope of support services. Given the sole-source nature, it is crucial for the Air Force to have conducted internal cost analyses or utilized historical pricing data to ensure the awarded amount is fair and reasonable, even without direct competition.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competitive bidding. Without competing offers, there is less incentive for the contractor to offer the lowest possible price. Another risk is the potential for scope creep or cost overruns if the contract's requirements are not precisely defined and managed. Furthermore, reliance on a single supplier for critical components and support can create vulnerabilities in the supply chain and limit flexibility if issues arise. The long duration of the contract also introduces risks related to technological obsolescence or changes in military requirements over time.

How effective is the QF-16 aerial target program in meeting Air Force training needs?

The QF-16 program is designed to provide the Air Force with realistic, high-performance aerial targets that simulate advanced adversary threats. This capability is crucial for effective pilot training, allowing them to practice engaging sophisticated enemy aircraft in a controlled environment. The program's effectiveness is measured by its ability to reliably deliver these simulated threats during training exercises, contributing to pilot proficiency and overall combat readiness. The contract's focus on unique materials, integration, and support suggests an effort to ensure the QF-16s remain operational and capable of meeting evolving training requirements. Success hinges on the consistent performance and availability of these targets.

What are the historical spending patterns for QF-16 aerial targets or similar systems?

Historical spending on QF-16 aerial targets and similar advanced drone systems has generally been substantial, reflecting the high cost of developing, manufacturing, and maintaining sophisticated military hardware. The Air Force has consistently invested in aerial target programs to ensure adequate training capabilities. Spending often fluctuates based on program maturity, production rates, and modernization efforts. While specific historical figures for the QF-16 program are not provided, it is understood that such systems represent a significant, ongoing investment within the defense budget. Analyzing past contract awards for similar target drones would reveal trends in pricing, volume, and duration, providing context for the current $25.2 million award.

What are the implications of the 'unique material' and 'drone peculiar equipment' for cost and risk?

The mention of 'unique material' and 'drone peculiar equipment' suggests that these are specialized components not readily available off-the-shelf. This implies higher development and procurement costs due to specialized manufacturing processes, stringent quality control, and potentially limited supplier options. For risk, it means the supply chain for these items could be more fragile, and any disruptions could significantly impact program timelines and costs. The sole-source nature of the award further amplifies these risks, as the government is reliant on Boeing's ability to source or produce these unique items at a reasonable cost and without delays.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $25,240,939

Exercised Options: $25,240,939

Current Obligation: $25,240,939

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $7,942,331

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline