Navy Awards $16.7M for F/A-18E/F Service Life Modifications to Boeing
Contract Overview
Contract Amount: $16,674,735 ($16.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-03-01
End Date: 2021-12-31
Contract Duration: 1,401 days
Daily Burn Rate: $11.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F/A-18E/F SERVICE LIFE MODIFICATIONS IGF::OT::IGF
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $16.7 million to THE BOEING COMPANY for work described as: F/A-18E/F SERVICE LIFE MODIFICATIONS IGF::OT::IGF Key points: 1. Contract awarded to a single, established prime contractor. 2. Focus on extending the operational life of critical fighter aircraft. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Aircraft Manufacturing sector, vital for national defense.
Value Assessment
Rating: fair
The contract value of $16.7M for service life modifications appears moderate for complex aircraft upgrades. However, without specific details on the scope of work or comparable modification contracts, a precise value assessment is difficult. The Cost Plus Fixed Fee (CPFF) structure introduces risk for cost escalation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competition is absent. The justification for sole-source is not provided.
Taxpayer Impact: The lack of competition in this sole-source award may result in higher costs for taxpayers compared to a competitively bid contract.
Public Impact
Ensures continued readiness of the F/A-18E/F fleet, a key component of naval aviation. Supports the operational capabilities of the U.S. Navy's carrier air wings. Maintains critical defense industrial base capacity within the Aircraft Manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Lack of detailed scope of work makes value assessment challenging.
Positive Signals
- Addresses critical need for extending fighter jet service life.
- Awarded to incumbent prime contractor with established expertise.
- Supports readiness of a key naval aviation asset.
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically focusing on sustainment and modernization of existing platforms. Spending benchmarks in this area are highly variable, depending on the complexity of modifications and the specific aircraft type. The $16.7M value is modest for major airframe modifications.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of small business participation in this specific award, which is common for prime contracts of this nature.
Oversight & Accountability
Oversight would typically be managed by the Department of the Navy's program office responsible for F/A-18 sustainment. The CPFF structure necessitates robust oversight to control costs and ensure performance standards are met.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award.
- Cost Plus Fixed Fee contract type.
- Limited transparency on scope of work.
- Potential for cost overruns.
- Lack of competitive pricing pressure.
Tags
aircraft-manufacturing, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.7 million to THE BOEING COMPANY. F/A-18E/F SERVICE LIFE MODIFICATIONS IGF::OT::IGF
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 Navy).
What is the total obligated amount?
The obligated amount is $16.7 million.
What is the period of performance?
Start: 2018-03-01. End: 2021-12-31.
What was the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award is crucial for understanding the necessity of bypassing competition. Agencies typically require documentation demonstrating that only one source can meet the requirement or that competition is not feasible. Without this justification, it's difficult to assess if taxpayer funds were used efficiently. Efforts to ensure fair and reasonable pricing in sole-source contracts often involve detailed cost analyses, historical pricing data, and independent government cost estimates.
What are the key performance metrics and milestones associated with these service life modifications, and how is contractor performance being tracked?
Understanding the performance metrics and milestones is vital for assessing the effectiveness of the contract. This includes technical specifications for the modifications, delivery schedules, and quality standards. Tracking contractor performance involves regular progress reviews, technical inspections, and financial audits. Effective oversight ensures that the modifications are completed as specified, on time, and within budget, ultimately contributing to the extended service life and operational readiness of the F/A-18E/F aircraft.
What is the projected impact of these modifications on the future operational readiness and lifespan of the F/A-18E/F fleet, and what are the associated sustainment costs?
The primary goal of service life modifications is to enhance the long-term operational readiness and extend the lifespan of the aircraft. Quantifying this impact involves assessing factors like reduced unscheduled maintenance, improved system reliability, and the number of additional flight hours or years the airframe can safely operate. Understanding associated sustainment costs post-modification is also critical for long-term budget planning and ensuring the overall cost-effectiveness of the investment in the F/A-18E/F fleet.
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: COST PLUS FIXED FEE (U)
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: $16,674,735
Exercised Options: $16,674,735
Current Obligation: $16,674,735
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $5,512,644
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001918D0001
IDV Type: IDC
Timeline
Start Date: 2018-03-01
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2025-08-05
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