Boeing Awarded $50.9M for F/A-18E/F SLM, Aircraft Manufacturing Sector

Contract Overview

Contract Amount: $50,914,383 ($50.9M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2023-07-11

End Date: 2024-12-10

Contract Duration: 518 days

Daily Burn Rate: $98.3K/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 $50.9 million to THE BOEING COMPANY for work described as: F/A-18E/F SLM Key points: 1. Significant contract value for specialized aircraft modification. 2. Sole-source award to The Boeing Company raises competition concerns. 3. Potential for cost overruns given the Cost Plus Incentive Fee structure. 4. Focus on aircraft manufacturing highlights a key defense sector.

Value Assessment

Rating: questionable

The contract's Cost Plus Incentive Fee (CPIF) structure, while incentivizing performance, can lead to higher final costs than fixed-price contracts. Benchmarking against similar 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, indicating a sole-source award to The Boeing Company. This lack of competition limits price discovery and potentially increases costs for the government.

Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for the F/A-18E/F SLM modifications.

Public Impact

Impacts readiness and capability of the F/A-18E/F Super Hornet fleet. Supports jobs within the aerospace manufacturing sector, specifically in Missouri. Potential for follow-on contracts if the SLM program is successful.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Incentive Fee contract type
Lack of competition

Positive Signals

Supports critical defense asset modification
Potential for performance incentives

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, a critical component of the defense industrial base. Spending in this area is often driven by modernization and sustainment needs for military platforms.

Small Business Impact

The prime contractor is The Boeing Company. There is no indication of subcontracting opportunities for small businesses in the provided data, which warrants further investigation.

Oversight & Accountability

The sole-source nature of this award suggests a need for robust oversight to ensure fair pricing and effective contract performance, especially given the CPIF structure.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition
Cost Plus Incentive Fee contract type
Potential for cost overruns
Limited transparency on pricing benchmarks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.9 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 $50.9 million.

What is the period of performance?

Start: 2023-07-11. End: 2024-12-10.

What is the estimated cost savings or benefit achieved by using a sole-source award for this specific modification compared to a competitive process?

Sole-source awards typically forgo the price discovery benefits of competition. While there might be justifications like unique capabilities or urgency, the absence of competition generally leads to higher costs for taxpayers. Quantifying savings from a hypothetical competition is challenging without detailed market research and cost analysis specific to the SLM modification.

How does the Cost Plus Incentive Fee structure mitigate risks of cost overruns for the F/A-18E/F SLM program?

The CPIF structure aims to control costs by setting target costs and profit margins, with incentives for the contractor to stay below or meet targets. However, it also allows for cost overruns up to a ceiling, and the government bears the risk of increased costs if targets are missed. Effective oversight is crucial to ensure incentives align with government interests.

What is the expected improvement in aircraft performance or lifespan resulting from the SLM modification, and how is this measured?

The Service Life Modification (SLM) program is designed to extend the operational life of the F/A-18E/F Super Hornet fleet. Specific performance improvements and lifespan extensions are typically defined in the contract's technical requirements and performance metrics. Success is measured against these baseline objectives and the achievement of target cost and schedule.

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: $50,914,383

Exercised Options: $50,914,383

Current Obligation: $50,914,383

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $3,939,211

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