Navy Awards $32.6M for F/A-18E/F Service Life Modifications to Boeing
Contract Overview
Contract Amount: $32,576,113 ($32.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-03-01
End Date: 2022-09-30
Contract Duration: 1,674 days
Daily Burn Rate: $19.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F/A-18E/F SERVICE LIFE MODIFICATIONS
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $32.6 million to THE BOEING COMPANY for work described as: F/A-18E/F SERVICE LIFE MODIFICATIONS Key points: 1. Significant contract awarded to a single, established prime contractor. 2. Focus on extending the life of critical naval aircraft. 3. Potential for cost overruns due to Cost Plus Fixed Fee structure. 4. Limited competition raises questions about optimal price discovery.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure allows for potential cost growth beyond initial estimates. Benchmarking against similar aircraft modification contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to the specialized nature of F/A-18E/F modifications and the prime contractor's unique position. The lack of competition may have limited opportunities for price negotiation and potentially led to higher costs.
Taxpayer Impact: Taxpayer funds are being used for essential aircraft sustainment. The absence of competition could mean a less efficient use of these funds compared to a competitive scenario.
Public Impact
Ensures continued operational readiness of the F/A-18E/F Super Hornet fleet. Supports jobs within the aerospace manufacturing sector, specifically at Boeing. Impacts the long-term strategic capabilities of the U.S. Navy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
Positive Signals
- Extends life of critical assets
- Supports established prime contractor
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing and sustainment. Spending on aircraft modifications is crucial for maintaining fleet readiness and can represent a significant portion of defense budgets.
Small Business Impact
This contract was awarded directly to a large prime contractor, The Boeing Company. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and performance to ensure value for money.
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
- Potential for cost growth
- Lack of transparency in pricing
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 $32.6 million to THE BOEING COMPANY. F/A-18E/F SERVICE LIFE MODIFICATIONS
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 $32.6 million.
What is the period of performance?
Start: 2018-03-01. End: 2022-09-30.
What is the projected cost savings or value proposition of these service life modifications compared to procuring new aircraft?
The primary value proposition of service life modifications is typically cost avoidance by extending the operational life of existing platforms rather than incurring the higher expense of procuring new aircraft. Quantifying the exact savings requires a detailed cost-benefit analysis comparing the modification costs against the acquisition cost of new platforms, factoring in operational readiness and future technological advancements.
What are the specific risks associated with a sole-source, Cost Plus Fixed Fee contract for aircraft modifications?
The primary risks include potential cost overruns, as the contractor is reimbursed for actual costs plus a fixed fee, incentivizing higher spending. Lack of competition means the government may not achieve the lowest possible price. There's also a risk of reduced innovation or efficiency if the contractor faces no competitive pressure to improve processes or reduce costs.
How effectively does this contract ensure the long-term operational readiness and technological relevance of the F/A-18E/F fleet?
This contract directly addresses operational readiness by extending the service life of existing airframes, preventing premature retirement. However, its effectiveness in ensuring technological relevance is limited, as it focuses on structural and system longevity rather than incorporating significant upgrades. Future contracts may be needed for modernization.
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: $32,576,113
Exercised Options: $32,576,113
Current Obligation: $32,576,113
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $7,358,457
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: 2022-09-30
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2025-04-18
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