DoD Awards Boeing $75M for Kuwait F/A-18E/F Logistics Support
Contract Overview
Contract Amount: $74,898,012 ($74.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-03-01
End Date: 2026-09-30
Contract Duration: 1,309 days
Daily Burn Rate: $57.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: INTEGRATED LOGISTICS SUPPORT FOR KUWAIT F/A-18E/F MODEL SUPER HORNET PROGRAM
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $74.9 million to THE BOEING COMPANY for work described as: INTEGRATED LOGISTICS SUPPORT FOR KUWAIT F/A-18E/F MODEL SUPER HORNET PROGRAM Key points: 1. Contract value of $74.9M for integrated logistics support. 2. Sole-source award to The Boeing Company. 3. Risk of limited competition impacting price discovery. 4. Services fall under logistics consulting within the Defense sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar logistics support contracts for advanced aircraft is difficult without more data, but the fixed fee component suggests an attempt to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This is a sole-source award, meaning competition was not sought. This significantly limits price discovery and potentially leads to higher costs for taxpayers. The justification for sole-source is not provided.
Taxpayer Impact: The lack of competition for this significant contract raises concerns about the best use of taxpayer funds, as a competitive process could have yielded a lower price.
Public Impact
Ensures operational readiness of F/A-18E/F Super Hornets for Kuwait. Supports critical defense capabilities through specialized logistics. Potential for increased costs due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 57 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency on competition justification
Positive Signals
- Supports critical defense asset readiness
- Long-term support contract
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically logistics consulting. Defense logistics support for complex aircraft like the F/A-18E/F is a specialized area, often dominated by original equipment manufacturers.
Small Business Impact
The contract was awarded to The Boeing Company, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, which is common for sole-source, high-value defense contracts.
Oversight & Accountability
The Department of the Navy is the awarding agency. Oversight will be crucial to ensure that the Cost Plus Fixed Fee structure does not lead to excessive costs and that the logistics support provided is effective and efficient.
Related Government Programs
- Process, Physical Distribution, and Logistics Consulting Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type carries risk of cost overruns.
- Lack of transparency regarding justification for sole-source.
- Potential for higher costs compared to competitive contracts.
- Dependence on a single contractor for critical support.
Tags
process-physical-distribution-and-logist, department-of-defense, mo, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.9 million to THE BOEING COMPANY. INTEGRATED LOGISTICS SUPPORT FOR KUWAIT F/A-18E/F MODEL SUPER HORNET PROGRAM
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 $74.9 million.
What is the period of performance?
Start: 2023-03-01. End: 2026-09-30.
What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The provided data does not include the justification for the sole-source award. Typically, such justifications would cite reasons like unique capabilities, urgent need, or lack of viable alternatives. Without this information, it's impossible to assess if fair and reasonable pricing was achieved through alternative means, making oversight critical to validate the value.
How does the cost of this integrated logistics support compare to similar contracts for other advanced fighter jet programs, considering the sole-source nature?
Direct comparison is challenging due to the sole-source award and specific nature of the F/A-18E/F program. However, sole-source contracts often carry a premium. Benchmarking against competitively procured logistics support for comparable aircraft would likely show this contract to be at a disadvantage in terms of cost-efficiency for the taxpayer.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effective logistics support for the Kuwaiti Super Hornets?
The data does not specify the KPIs for this contract. Effective logistics support would typically involve metrics such as aircraft availability rates, response times for parts and maintenance, and successful completion of scheduled maintenance. The Department of the Navy's oversight should focus on establishing and monitoring these KPIs to ensure mission readiness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001922R0003
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $74,898,012
Exercised Options: $74,898,012
Current Obligation: $74,898,012
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $596,184
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-03-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-12-17
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