Navy Awards Boeing $56.3M for F/A-18E/F SLM Aircraft Amidst Limited Competition
Contract Overview
Contract Amount: $56,290,124 ($56.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-12-22
End Date: 2025-11-30
Contract Duration: 709 days
Daily Burn Rate: $79.4K/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 $56.3 million to THE BOEING COMPANY for work described as: F/A-18E/F SLM AIRCRAFT Key points: 1. Significant contract value for specialized aircraft modification. 2. Sole-source award to Boeing raises questions about competition and potential cost savings. 3. Risk associated with sole-source procurement and reliance on a single contractor. 4. Aircraft manufacturing sector sees continued defense spending.
Value Assessment
Rating: questionable
The contract value of $56.3 million for aircraft modification appears high, especially given the sole-source nature. Benchmarking against similar sole-source modifications for advanced fighter jets would be necessary to determine true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to The Boeing Company, indicating a lack of competitive bidding. This method limits price discovery and may result in higher costs for the government.
Taxpayer Impact: The absence of competition in this sole-source award could lead to taxpayers paying a premium for these aircraft modifications.
Public Impact
Impacts readiness and capabilities of the Navy's F/A-18E/F fleet. Potential for increased costs due to sole-source procurement. Highlights ongoing reliance on Boeing for critical naval aviation platforms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
Positive Signals
- Supports critical defense capabilities
- Addresses specific fleet modification needs
Sector Analysis
The Department of Defense, specifically the Navy, continues to invest heavily in aircraft manufacturing and sustainment. This contract for F/A-18E/F modifications falls within a sector characterized by high technological complexity and significant government expenditure.
Small Business Impact
This contract was awarded directly to a large prime contractor, The Boeing Company. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution. Accountability for cost and performance will be crucial given the limited competition.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source procurement
- Lack of competitive bidding
- Potential for inflated costs
- Limited transparency in pricing
- Reliance on a single supplier
Tags
aircraft-manufacturing, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.3 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 $56.3 million.
What is the period of performance?
Start: 2023-12-22. End: 2025-11-30.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs that only one contractor can meet. For this F/A-18E/F modification, the Navy likely cited specific technical requirements or existing platform expertise held by Boeing. However, a thorough review should confirm that competitive avenues were indeed explored and deemed unsuitable before resorting to a sole-source procurement.
How does the per-unit cost of this modification compare to similar sole-source or competitively awarded contracts for the F/A-18E/F?
Without access to a benchmark database of similar F/A-18E/F modification contracts, a precise comparison is difficult. However, sole-source contracts are generally expected to be more expensive than competitively awarded ones due to the lack of price pressure. The $56.3 million total for an unspecified number of aircraft suggests a significant per-unit cost that warrants scrutiny against historical data and industry standards.
What are the long-term implications of continued sole-source reliance on Boeing for F/A-18E/F sustainment and upgrades?
Long-term sole-source reliance can stifle innovation, reduce contractor responsiveness, and lead to escalating costs as competition is eliminated. For the F/A-18E/F, this could mean higher sustainment costs over the aircraft's lifespan and potentially slower adoption of technological advancements. It also concentrates risk within a single supplier, making the fleet vulnerable to supply chain disruptions or performance issues.
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: $56,290,124
Exercised Options: $56,290,124
Current Obligation: $56,290,124
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $5,074,063
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: 2023-12-22
Current End Date: 2025-11-30
Potential End Date: 2025-11-30 00:00:00
Last Modified: 2025-06-26
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