Boeing Awarded $87.18M for F/A-18E/F SLM, Sole-Source Contract
Contract Overview
Contract Amount: $87,180,008 ($87.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-04-19
End Date: 2025-07-30
Contract Duration: 833 days
Daily Burn Rate: $104.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: F/A-18E/F SLM
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $87.2 million to THE BOEING COMPANY for work described as: F/A-18E/F SLM Key points: 1. Significant contract awarded to a single, established prime contractor. 2. Focus on aircraft manufacturing, a critical defense sector. 3. Potential for cost overruns due to Cost Plus Incentive Fee structure. 4. Limited transparency on pricing due to sole-source nature.
Value Assessment
Rating: questionable
The contract's Cost Plus Incentive Fee (CPIF) structure can lead to higher costs if performance targets are not met efficiently. Benchmarking against similar sole-source aircraft modifications is difficult without more detailed cost breakdowns.
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 limits price discovery and potentially leads to higher costs compared to a competitive procurement.
Taxpayer Impact: Taxpayer funds are committed without competitive pressure, potentially increasing the overall cost of the F/A-18E/F sustainment program.
Public Impact
Ensures continued readiness and modernization of the F/A-18E/F Super Hornet fleet. Supports a major defense contractor and its supply chain. Impacts the operational capabilities of naval aviation squadrons.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- CPIF contract type can incentivize higher costs.
- Lack of detailed cost data for benchmarking.
Positive Signals
- Addresses critical sustainment needs for a key aircraft platform.
- Leverages established contractor expertise for complex modifications.
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing and sustainment. Spending benchmarks for similar sole-source modifications are often high due to specialized labor and proprietary technology.
Small Business Impact
While the prime contractor is large, the contract's sole-source nature and focus on prime manufacturing may limit direct subcontracting opportunities for small businesses in this specific award. Further analysis of the full contract would be needed.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The CPIF structure requires careful monitoring of performance metrics and cost expenditures to ensure value for money and prevent contractor overspending.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Cost Plus Incentive Fee contract type
- Lack of competitive bidding
- Potential for cost escalation
- Limited transparency on 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 $87.2 million to THE BOEING COMPANY. F/A-18E/F SLM
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 $87.2 million.
What is the period of performance?
Start: 2023-04-19. End: 2025-07-30.
What specific sustainment improvements does the SLM modification entail, and how do they justify the sole-source award?
The Sustainment Level Maintenance (SLM) modification likely addresses critical wear and tear, obsolescence, or performance degradation issues unique to the F/A-18E/F fleet. Justification for a sole-source award would typically hinge on the contractor possessing unique technical data, specialized tooling, or intellectual property essential for these specific upgrades, making competition impractical or prohibitively expensive.
How will the Cost Plus Incentive Fee structure be managed to mitigate risks of cost overruns?
Effective management of the CPIF structure requires clearly defined and achievable performance targets (e.g., delivery schedule, quality standards, specific technical improvements). The Navy must establish robust cost tracking and auditing mechanisms, along with regular performance reviews, to ensure the incentive aligns with government objectives and discourages unnecessary expenditures by the contractor.
What is the long-term strategic value of investing in the F/A-18E/F SLM program versus exploring alternatives?
The long-term value depends on the F/A-18E/F's projected service life and its role in the overall naval aviation strategy. Investing in SLM ensures the platform remains operationally viable and effective for its remaining lifespan. Alternatives might include accelerating procurement of next-generation aircraft or extending the life of other platforms, but these carry their own significant costs and strategic implications.
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 INCENTIVE FEE (V)
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: $87,180,008
Exercised Options: $87,180,008
Current Obligation: $87,180,008
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $11,590,927
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: 2023-04-19
Current End Date: 2025-07-30
Potential End Date: 2025-07-30 00:00:00
Last Modified: 2025-03-11
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)