Boeing Awarded $149.8M for F-18 Hornet Airframe Components by Naval Air Systems Command

Contract Overview

Contract Amount: $177,027,164 ($177.0M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2000-10-20

End Date: 2010-08-20

Contract Duration: 3,591 days

Daily Burn Rate: $49.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200107!000063!1700!AA4M0 !NAVAL AIR SYSTEMS COMMAND !N0001901C0012 !A!N!*!N! !20001020!20051231!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000052901458!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1A!AIRFRAMES AND SPARES !2AFX!F-18 HORNET !336411!*!*!3! ! ! !*!*!*!B!*!*!A! !D !N!U!1!001!N!1A!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001!

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $177.0 million to THE BOEING COMPANY for work described as: 200107!000063!1700!AA4M0 !NAVAL AIR SYSTEMS COMMAND !N0001901C0012 !A!N!*!N! !20001020!20051231!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. L… Key points: 1. Significant contract awarded to a major defense contractor for critical aircraft components. 2. The F-18 Hornet is a key asset in naval aviation, indicating sustained demand. 3. Potential for cost overruns exists given the 'Cost Plus Fixed Fee' contract type. 4. The defense sector continues to be a major area of federal spending.

Value Assessment

Rating: fair

The contract value of $149.8 million for aircraft accessories and components appears reasonable for a large-scale defense procurement. However, without specific per-unit cost data or comparison to similar contracts for F-18 components, a definitive assessment of value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive bidding process.

Taxpayer Impact: The lack of competition may result in the government paying a premium for these aircraft components, impacting taxpayer funds.

Public Impact

Ensures continued availability of critical parts for the F-18 fighter jet fleet. Supports jobs and operations within the aerospace and defense manufacturing sector. Highlights the government's reliance on established, large defense contractors for specialized components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus contract type
Long contract duration

Positive Signals

Supports critical defense asset
Awarded to established prime contractor

Sector Analysis

This contract falls within the Defense sector, specifically Aircraft Manufacturing. Federal spending in this area is substantial, driven by modernization and maintenance of military fleets. Benchmarks for similar component contracts are often proprietary but are generally high due to specialized requirements.

Small Business Impact

This contract was awarded to a large prime contractor, The Boeing Company. There is no indication of subcontracting opportunities for small businesses within the provided data, which is common for large sole-source defense awards.

Oversight & Accountability

The Naval Air Systems Command is responsible for the oversight of this contract. The 'Cost Plus Fixed Fee' structure requires diligent monitoring to ensure costs remain reasonable and that the contractor meets performance requirements.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competition and potentially increases cost.
Cost-plus contract type carries inherent risk of cost escalation.
Long contract duration (2000-2010) may not reflect current market prices or technological advancements.
Lack of transparency on specific component pricing makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $177.0 million to THE BOEING COMPANY. 200107!000063!1700!AA4M0 !NAVAL AIR SYSTEMS COMMAND !N0001901C0012 !A!N!*!N! !20001020!20051231!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000052901458!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1A!AIRFRAMES AND SPARES !2AFX!F-18 HORNET !336411!*!*!3! ! ! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is THE BOEING COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $177.0 million.

What is the period of performance?

Start: 2000-10-20. End: 2010-08-20.

What was the rationale for awarding this contract on a sole-source basis?

The rationale for a sole-source award typically stems from a lack of available competition, unique capabilities of the awarded contractor, or urgent national security needs. Without further documentation, it's difficult to ascertain the specific justification, but it implies that only The Boeing Company could fulfill the requirement at the time of award.

How does the 'Cost Plus Fixed Fee' structure impact potential cost overruns?

A Cost Plus Fixed Fee (CPFF) contract reimburses the contractor for allowable costs plus a fixed fee representing profit. While the fee is fixed, the total cost can increase if allowable costs escalate. This structure incentivizes the contractor to control costs to some extent, but the government bears the risk of cost increases.

What is the long-term strategic value of this contract for the F-18 program?

This contract ensures the continued supply of essential airframe components, directly supporting the operational readiness and longevity of the F-18 fighter jet fleet. This is strategically vital for maintaining naval air superiority and fulfilling defense commitments, especially as the F-18 remains a significant part of the U.S. Navy's inventory.

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

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: J S MCDONNELL BLVD, SAINT LOUIS, MO, 63166

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline