Navy Awards $18.4M for Kuwait Super Hornet IPS, Boeing Sole Source
Contract Overview
Contract Amount: $18,423,238 ($18.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-12-13
End Date: 2026-06-30
Contract Duration: 564 days
Daily Burn Rate: $32.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CY24-CY25 KUWAIT SUPER HORNET IPS
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $18.4 million to THE BOEING COMPANY for work described as: CY24-CY25 KUWAIT SUPER HORNET IPS Key points: 1. Significant contract value for specialized aircraft parts. 2. Sole-source award to Boeing raises competition concerns. 3. Potential for cost overruns with Cost Plus Fixed Fee structure. 4. Long-term support for critical defense assets.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type allows for potential cost overruns, especially without competitive bidding. The awarded amount of $18.4M needs further benchmarking against similar sole-source contracts for Super Hornet parts to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and may lead to higher costs for the government compared to a competitive procurement.
Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium due to the absence of competitive pressure on pricing.
Public Impact
Ensures continued operational readiness of Super Hornet aircraft in Kuwait. Supports a key defense partner's aviation capabilities. Maintains critical supply chain for specialized aircraft components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
Positive Signals
- Supports critical defense asset
- Long-term contract duration
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Engine and Engine Parts Manufacturing. Spending in this area is often characterized by high technical complexity and reliance on a limited number of specialized manufacturers, leading to sole-source awards.
Small Business Impact
The contract does not indicate any specific set-asides for small businesses. Given the sole-source nature and the prime contractor (Boeing), it is unlikely that small businesses will be directly involved in this specific award, though they may be lower-tier suppliers.
Oversight & Accountability
The sole-source justification and the CPFF contract type warrant close oversight to ensure costs are reasonable and performance meets requirements. The Department of the Navy is responsible for monitoring this contract.
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.
- Cost Plus Fixed Fee contract type may lead to cost overruns.
- Absence of small business participation noted.
- Potential for price inflation due to lack of competitive pressure.
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 $18.4 million to THE BOEING COMPANY. CY24-CY25 KUWAIT SUPER HORNET IPS
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 $18.4 million.
What is the period of performance?
Start: 2024-12-13. End: 2026-06-30.
What is the justification for the sole-source award, and has an adequate price competition analysis been performed?
The justification for a sole-source award typically stems from unique capabilities or proprietary technology held by a single source. An adequate price competition analysis is crucial even in sole-source situations to ensure the government is not overpaying. This involves comparing proposed costs to historical data, independent cost estimates, or commercial pricing for similar items, which is essential given the CPFF structure.
What are the potential risks associated with the Cost Plus Fixed Fee contract type in this sole-source scenario?
The primary risk with a CPFF contract, especially when sole-source, is the potential for cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. Without competition, there's less incentive for the contractor to control costs rigorously. This necessitates robust government oversight to scrutinize costs and ensure the fixed fee remains appropriate for the effort.
How does this contract contribute to the overall effectiveness and readiness of the Super Hornet fleet, particularly in Kuwait?
This contract is vital for maintaining the operational readiness of the Super Hornet fleet by ensuring the availability of essential Integrated Product Support (IPS) components. Consistent and timely access to these parts directly impacts the fleet's ability to perform its missions effectively, especially in a deployed environment like Kuwait, thereby enhancing overall defense capabilities.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
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: N0001922R0009
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: $18,424,158
Exercised Options: $18,424,158
Current Obligation: $18,423,238
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $47,616
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001921G0006
IDV Type: BOA
Timeline
Start Date: 2024-12-13
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-12-19
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