Navy Awards Boeing $105.5M for F/A-18E/F SLM Aircraft Amidst Limited Competition
Contract Overview
Contract Amount: $105,504,289 ($105.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-05-06
End Date: 2026-06-15
Contract Duration: 770 days
Daily Burn Rate: $137.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: F/A-18E/F SLM AIRCRAFT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $105.5 million to THE BOEING COMPANY for work described as: F/A-18E/F SLM AIRCRAFT Key points: 1. Significant contract value for specialized aircraft manufacturing. 2. Sole reliance on Boeing raises competition concerns. 3. Potential risks associated with single-source procurement. 4. Defense sector spending on advanced aircraft.
Value Assessment
Rating: questionable
The contract value of $105.5M for F/A-18E/F SLM Aircraft appears high given the limited competition. Benchmarking against similar sole-source or limited-competition aircraft procurements would be necessary to definitively assess value.
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 leads to higher costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for these specialized aircraft.
Public Impact
Impacts naval aviation readiness and modernization efforts. Highlights reliance on a single prime contractor for critical defense assets. Raises questions about long-term sustainment and potential cost overruns.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competition
- Potential for cost overruns
- Dependence on a single supplier
Positive Signals
- Addresses critical naval aviation needs
- Supports a key defense contractor
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is often characterized by high R&D costs, long production cycles, and significant government oversight due to national security implications.
Small Business Impact
The contract data does not indicate any specific provisions or subcontracting goals for small businesses. As a sole-source award to a large prime contractor, opportunities for small business participation may be limited unless actively pursued by Boeing.
Oversight & Accountability
The Department of the Navy is responsible for oversight. Given the sole-source nature and cost-plus contract type, robust oversight will be crucial to manage costs and ensure performance objectives are met.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for cost overruns due to CPIF contract type.
- Dependence on a single manufacturer.
- Lack of transparency in pricing without competition.
- Risk of schedule delays impacting fleet readiness.
Tags
aircraft-manufacturing, department-of-defense, mo, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $105.5 million to THE BOEING COMPANY. F/A-18E/F SLM AIRCRAFT
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 $105.5 million.
What is the period of performance?
Start: 2024-05-06. End: 2026-06-15.
What is the justification for awarding this contract sole-source, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or a lack of viable alternatives. The Department of the Navy should have documented this justification. For fair pricing, a Cost Plus Incentive Fee (CPIF) contract structure aims to incentivize the contractor to control costs by sharing savings or overruns, but rigorous auditing and negotiation are still essential.
What are the long-term risks associated with relying solely on Boeing for F/A-18E/F SLM aircraft production and sustainment?
Long-term risks include potential price escalation due to lack of competition, vulnerability to supply chain disruptions affecting only one supplier, and reduced leverage for negotiating future upgrades or modifications. Dependence also limits the government's ability to foster competition or explore alternative platforms if needed.
How does this contract contribute to the overall effectiveness and readiness of the naval aviation fleet?
This contract directly contributes to the effectiveness and readiness of the naval aviation fleet by procuring or upgrading critical F/A-18E/F Super Hornet aircraft. These platforms are workhorses for carrier-based operations, and ensuring their availability and capability is paramount for mission accomplishment and maintaining air superiority.
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: $105,504,289
Exercised Options: $105,504,289
Current Obligation: $105,504,289
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $20,811,189
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: 2024-05-06
Current End Date: 2026-06-15
Potential End Date: 2026-06-15 00:00:00
Last Modified: 2025-08-21
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