Navy Awards $952M for F/A-18 Block III & Growler Equipment, Sole-Sourced to Boeing
Contract Overview
Contract Amount: $95,189,177 ($95.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-04-11
End Date: 2028-07-31
Contract Duration: 1,572 days
Daily Burn Rate: $60.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS UCA IS TO TO PROCURE F/A-18 BLOCK III AND COMMON GROWLER EQUIPMENT, LIFE-OF-TYPE-BUYS, AND SPECIAL TEST EQUIPMENT.
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $95.2 million to THE BOEING COMPANY for work described as: THIS UCA IS TO TO PROCURE F/A-18 BLOCK III AND COMMON GROWLER EQUIPMENT, LIFE-OF-TYPE-BUYS, AND SPECIAL TEST EQUIPMENT. Key points: 1. Significant contract value of $951.9 million for critical naval aviation platforms. 2. Sole-source award to The Boeing Company raises questions about price discovery and competition. 3. Long-term procurement strategy (life-of-type buys) aims for predictable supply but may limit future negotiation opportunities. 4. Focus on F/A-18 and Growler platforms indicates continued investment in existing, high-demand aircraft.
Value Assessment
Rating: questionable
The contract's firm fixed price structure provides cost certainty for the government. However, without competition, it's difficult to benchmark the pricing against market alternatives or assess if it represents the best 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 the government's ability to leverage market forces for potentially lower prices or better terms.
Taxpayer Impact: The absence of competition may result in higher costs for taxpayers compared to a fully competed procurement.
Public Impact
Ensures continued availability of critical F/A-18 Block III and Common Growler aircraft and associated equipment. Supports the U.S. Navy's aviation readiness and operational capabilities. Sustains jobs and economic activity within The Boeing Company and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long-term commitment without competitive pressure
Positive Signals
- Ensures supply of critical defense assets
- Firm fixed price provides cost certainty
Sector Analysis
This procurement falls within the Defense sector, specifically aircraft manufacturing and parts. Spending benchmarks for similar sole-source aircraft procurements can vary widely based on platform complexity and market conditions.
Small Business Impact
The data indicates this is a sole-source award to a large prime contractor, The Boeing Company. There is no explicit information on subcontracting opportunities for small businesses within this specific award notice.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and adherence to contract terms. The Department of the Navy is responsible for managing this contract and ensuring accountability.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for overpayment due to lack of competition
- Risk of vendor lock-in
- Limited transparency on pricing justification
- Dependency on a single supplier for critical assets
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 $95.2 million to THE BOEING COMPANY. THIS UCA IS TO TO PROCURE F/A-18 BLOCK III AND COMMON GROWLER EQUIPMENT, LIFE-OF-TYPE-BUYS, AND SPECIAL TEST EQUIPMENT.
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 $95.2 million.
What is the period of performance?
Start: 2024-04-11. End: 2028-07-31.
What justification was provided for the sole-source award, and were alternative competitive strategies considered?
The provided data states the contract was 'NOT COMPETED' but does not detail the specific justification for this sole-source approach. Typically, sole-source awards require justification based on factors like unique capabilities, urgent needs, or lack of viable alternatives. Further investigation into the contract file would be necessary to understand the rationale and confirm if other competitive avenues were explored and deemed unsuitable.
How does the unit cost of the F/A-18 Block III and Common Growler equipment compare to previous procurements or industry benchmarks?
Without specific unit cost breakdowns or access to historical pricing data for these platforms, a direct comparison is not possible from the provided information. The total award value and duration are known, but the per-unit cost is not explicitly stated or benchmarked. Analyzing the contract's pricing details against prior awards or similar sole-source contracts would be crucial for assessing value.
What is the long-term strategy for ensuring competitive pricing for future F/A-18 and Growler sustainment and upgrades?
The 'life-of-type-buys' suggest a strategy focused on securing long-term supply rather than immediate cost optimization through competition. Future competitive opportunities might arise during major upgrade cycles or if alternative platforms become viable. The Navy will need to plan strategically for future competitions to avoid perpetual sole-source reliance and ensure cost-effectiveness over the platforms' lifespans.
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: FIRM FIXED PRICE (J)
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: $97,136,106
Exercised Options: $95,189,177
Current Obligation: $95,189,177
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $17,841,439
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: 2024-04-11
Current End Date: 2028-07-31
Potential End Date: 2028-07-31 00:00:00
Last Modified: 2026-04-09
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