Navy's $18.3M F/A-18E/F SATCOM Retrofit Contract Awarded to Boeing
Contract Overview
Contract Amount: $18,301,340 ($18.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-07-30
End Date: 2025-04-30
Contract Duration: 1,370 days
Daily Burn Rate: $13.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SUPPLIES AND SUPPORT NECESSARY TO PROCURE UNITED STATES NAVY (USN) F/A-18E/F AND EA-18G SATELLITE COMMUNICATION (SATCOM) RETROFIT KITS FOR ENGINEERING CHANGE PROPOSAL (ECP) 6486, SATCOM CAPABILITY IN F/A-18E/F AND EA-18G AIRCRAFT.
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $18.3 million to THE BOEING COMPANY for work described as: SUPPLIES AND SUPPORT NECESSARY TO PROCURE UNITED STATES NAVY (USN) F/A-18E/F AND EA-18G SATELLITE COMMUNICATION (SATCOM) RETROFIT KITS FOR ENGINEERING CHANGE PROPOSAL (ECP) 6486, SATCOM CAPABILITY IN F/A-18E/F AND EA-18G AIRCRAFT. Key points: 1. Significant investment in enhancing communication capabilities for critical Navy aircraft. 2. Sole-source award to Boeing, the original equipment manufacturer, raises questions about price discovery. 3. Long-term contract (2021-2025) suggests a sustained need for these upgrades. 4. Potential for cost overruns due to lack of competitive bidding.
Value Assessment
Rating: questionable
The contract's value of $18.3 million for retrofit kits is difficult to assess without competitive benchmarks. The sole-source nature limits transparency in pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, awarded directly to The Boeing Company. This approach bypasses competitive bidding, potentially leading to higher prices and reduced innovation.
Taxpayer Impact: Taxpayers may be overpaying due to the absence of a competitive process, as the government did not explore alternative pricing or solutions.
Public Impact
Enhances operational effectiveness of F/A-18E/F and EA-18G aircraft through improved SATCOM. Supports critical intelligence, surveillance, and reconnaissance missions. Ensures continued technological relevance of a key naval aviation platform.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Critical capability upgrade
- Long-term sustainment planned
Sector Analysis
This contract falls within the aerospace and defense sector, specifically aircraft manufacturing and modification. Spending in this area is often characterized by high R&D costs and specialized production, with sole-source awards being common for unique systems.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further oversight is needed to ensure the pricing is fair and reasonable, and to explore future opportunities for competition.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for price gouging.
- Limited transparency in cost justification.
- Risk of vendor lock-in.
- No clear small business participation.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.3 million to THE BOEING COMPANY. SUPPLIES AND SUPPORT NECESSARY TO PROCURE UNITED STATES NAVY (USN) F/A-18E/F AND EA-18G SATELLITE COMMUNICATION (SATCOM) RETROFIT KITS FOR ENGINEERING CHANGE PROPOSAL (ECP) 6486, SATCOM CAPABILITY IN F/A-18E/F AND EA-18G AIRCRAFT.
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 $18.3 million.
What is the period of performance?
Start: 2021-07-30. End: 2025-04-30.
What is the justification for awarding this contract sole-source to Boeing, and what steps were taken to ensure a fair and reasonable price?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by a single source. For this contract, it's likely tied to Boeing's role as the original equipment manufacturer for the F/A-18E/F and EA-18G aircraft. However, without a competitive process, ensuring a fair and reasonable price requires rigorous negotiation and cost analysis by the contracting agency.
What are the risks associated with a sole-source procurement for critical aircraft upgrades like SATCOM retrofits?
The primary risks of sole-source procurement include inflated costs due to the lack of competitive pressure, limited innovation as there's no incentive for alternative solutions, and potential vendor lock-in. For critical upgrades, this can also mean delays if the sole provider faces production issues or if their pricing becomes prohibitive, impacting fleet readiness.
How will this SATCOM capability upgrade impact the operational effectiveness and mission capabilities of the US Navy's F/A-18E/F and EA-18G aircraft?
The upgrade is expected to significantly enhance the SATCOM capabilities of these aircraft, enabling more secure, reliable, and higher bandwidth communication. This directly supports improved situational awareness, real-time data sharing, and enhanced command and control during complex missions, including intelligence, surveillance, reconnaissance, and electronic warfare operations.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
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: $18,301,340
Exercised Options: $18,301,340
Current Obligation: $18,301,340
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $14,668,231
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001921G0006
IDV Type: BOA
Timeline
Start Date: 2021-07-30
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2025-05-05
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