DoD Awards Boeing $17.9M for F/A-18 Environmental Control System Software Update
Contract Overview
Contract Amount: $17,931,472 ($17.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-09-27
End Date: 2028-01-31
Contract Duration: 1,221 days
Daily Burn Rate: $14.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NON-RECURRING ENGINEERING (NRE)FOR THE F/A-18 ENVIRONMENTAL CONTROL SYSTEM SOFTWARE PHASE III UPDATE.
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $17.9 million to THE BOEING COMPANY for work described as: NON-RECURRING ENGINEERING (NRE)FOR THE F/A-18 ENVIRONMENTAL CONTROL SYSTEM SOFTWARE PHASE III UPDATE. Key points: 1. Significant investment in critical aircraft software for the F/A-18. 2. Sole-source award to Boeing raises questions about competition and potential cost savings. 3. Long-term contract duration (2028) suggests ongoing reliance on this system. 4. Focus on non-recurring engineering indicates a one-time development cost, but future sustainment costs are unknown.
Value Assessment
Rating: questionable
The contract value of $17.9M for NRE is difficult to assess without comparable benchmarks for similar software development efforts on military aircraft. The cost-plus-fixed-fee structure can lead to cost overruns if not closely managed.
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 may result in higher costs for the government compared to a competitive procurement.
Taxpayer Impact: The absence of competition for this significant contract raises concerns about the efficient use of taxpayer funds, as a potentially lower price may have been achievable through a competitive process.
Public Impact
Ensures continued operational readiness and modernization of the F/A-18 fleet. Supports advanced avionics and control systems for a key naval asset. Potential for follow-on contracts for sustainment and further upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
- Unknown sustainment costs
Positive Signals
- Essential upgrade for critical defense platform
- Supports ongoing modernization efforts
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft software development. Spending in this area is critical for maintaining technological superiority but requires careful oversight due to high development costs and specialized nature.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
The Department of the Navy is the awarding agency. Oversight will be crucial to manage the cost-plus-fixed-fee structure and ensure the delivered software meets specifications within the negotiated fixed fee, especially given the sole-source nature of the award.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition
- Cost-plus contract type can lead to cost overruns
- Long contract duration may indicate lack of competitive alternatives
- Potential for unquantified future sustainment costs
- Lack of small business participation noted
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 $17.9 million to THE BOEING COMPANY. NON-RECURRING ENGINEERING (NRE)FOR THE F/A-18 ENVIRONMENTAL CONTROL SYSTEM SOFTWARE PHASE III UPDATE.
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 $17.9 million.
What is the period of performance?
Start: 2024-09-27. End: 2028-01-31.
What is the projected total lifecycle cost for the F/A-18 Environmental Control System software, including sustainment and future updates?
The provided data only covers the Non-Recurring Engineering (NRE) for Phase III. The total lifecycle cost is not detailed, but it is crucial for the Department of the Navy to project and budget for sustainment, maintenance, and potential future upgrades to ensure the long-term viability and cost-effectiveness of the system.
What justification was provided for the sole-source award to The Boeing Company, and were alternative solutions or vendors considered?
The data indicates the contract was 'NOT COMPETED,' implying a sole-source justification. Typically, this requires demonstrating that only one source can meet the requirement due to unique capabilities, proprietary technology, or urgent need. A thorough review of the justification is necessary to ensure fair and reasonable pricing and to confirm no viable competitive alternatives were overlooked.
How will the effectiveness of the software update be measured, and what are the key performance indicators for this contract?
The effectiveness of the software update will likely be measured through rigorous testing, validation, and operational deployment within the F/A-18 platform. Key performance indicators would typically include system reliability, performance improvements (e.g., efficiency, stability), adherence to specifications, and successful integration with existing aircraft systems. The contract's fixed fee component suggests performance targets are tied to the successful completion of the defined scope.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $18,102,980
Exercised Options: $17,931,472
Current Obligation: $17,931,472
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $9,959,507
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001921G0006
IDV Type: BOA
Timeline
Start Date: 2024-09-27
Current End Date: 2028-01-31
Potential End Date: 2028-01-31 00:00:00
Last Modified: 2025-07-01
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