Navy Awards Boeing $91.8M for F/A-18E/F Super Hornet Sustainment
Contract Overview
Contract Amount: $91,857,749 ($91.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-12-01
End Date: 2024-10-31
Contract Duration: 1,430 days
Daily Burn Rate: $64.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F/A-18E/F SLM AT SAT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $91.9 million to THE BOEING COMPANY for work described as: F/A-18E/F SLM AT SAT Key points: 1. Significant contract value for aircraft sustainment. 2. Sole-source award to Boeing, limiting competition. 3. Potential risk in cost escalation due to cost-plus contract type. 4. Spending concentrated in the Defense sector, specifically aircraft manufacturing.
Value Assessment
Rating: fair
The contract value of $91.8M for sustainment services appears reasonable given the complexity of modern fighter aircraft. However, the cost-plus fixed fee structure warrants close monitoring to ensure costs remain controlled and do not exceed benchmarks for similar sustainment contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This lack of competition may limit price discovery and potentially lead to higher costs than if multiple vendors had bid.
Taxpayer Impact: Taxpayer funds are being used for this sole-source award, emphasizing the need for robust oversight to ensure value for money.
Public Impact
Ensures continued operational readiness of the F/A-18E/F Super Hornet fleet. Supports critical defense capabilities for the U.S. Navy. Maintains jobs and expertise within the aerospace manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Supports critical defense asset
- Long-term sustainment contract
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing and sustainment. Spending benchmarks for similar sustainment contracts are difficult to ascertain without more detailed cost breakdowns, but the value is substantial for specialized military aircraft.
Small Business Impact
This contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. Given the sole-source nature and cost-plus structure, rigorous monitoring of performance and costs by the agency is crucial to ensure accountability and prevent potential overruns.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition and potentially increases costs.
- Cost-plus contract type may incentivize higher spending.
- Lack of transparency on specific cost drivers and profit margins.
- Potential for cost overruns if not closely monitored.
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 $91.9 million to THE BOEING COMPANY. F/A-18E/F SLM AT SAT
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 $91.9 million.
What is the period of performance?
Start: 2020-12-01. End: 2024-10-31.
What is the projected total cost of ownership for the F/A-18E/F fleet over its lifecycle, and how does this sustainment contract contribute to that figure?
The total lifecycle cost for the F/A-18E/F fleet is substantial, encompassing acquisition, sustainment, and modernization. This $91.8M contract represents a portion of the ongoing sustainment costs. A comprehensive lifecycle cost analysis would be needed to determine the exact contribution, but it is essential for maintaining the fleet's operational readiness over its remaining service life.
What are the specific risks associated with the 'Cost Plus Fixed Fee' contract type in this context, and what mitigation strategies are in place?
The primary risk of a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs, as the government bears the majority of the cost risk. Mitigation strategies typically include robust government oversight, detailed cost tracking, performance metrics, and clear definition of allowable costs to ensure the fixed fee remains appropriate for the effort.
How does the sustainment of the F/A-18E/F fleet align with the Department of Defense's long-term strategic goals and modernization plans?
Sustaining the F/A-18E/F fleet is crucial for maintaining air superiority and meeting current operational demands while the Navy transitions to next-generation platforms like the F-35C. This contract ensures the existing fleet remains combat-ready, supporting strategic objectives by providing a capable force until newer assets are fully integrated and operational.
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: $91,857,749
Exercised Options: $91,857,749
Current Obligation: $91,857,749
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $17,402,713
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: 2020-12-01
Current End Date: 2024-10-31
Potential End Date: 2024-10-31 00:00:00
Last Modified: 2025-03-11
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