Navy Awards $71.6M F/A-18 Integrated Product Support Contract to Boeing
Contract Overview
Contract Amount: $71,591,829 ($71.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-01-01
End Date: 2025-12-31
Contract Duration: 364 days
Daily Burn Rate: $196.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CY-2025 INTEGRATED PRODUCT SUPPORT, FMS SHARE AND RAAF SPECIFIC, IN SUPPORT OF THE F/A-18 PROGRAM.
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $71.6 million to THE BOEING COMPANY for work described as: CY-2025 INTEGRATED PRODUCT SUPPORT, FMS SHARE AND RAAF SPECIFIC, IN SUPPORT OF THE F/A-18 PROGRAM. Key points: 1. Contract value of $71.6 million for F/A-18 program support. 2. Sole-source award to The Boeing Company. 3. Focus on integrated product support, FMS share, and RAAF specifics. 4. Engineering services (NAICS 541330) are the primary focus.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking against similar F/A-18 support contracts is difficult without more detailed cost breakdowns.
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 limits price discovery and potentially leads to higher costs compared to a competitive environment.
Taxpayer Impact: The lack of competition for this significant contract may result in taxpayers paying a premium for integrated product support services for the F/A-18 program.
Public Impact
Ensures continued operational readiness for the F/A-18 fleet. Supports international partners (RAAF) with critical program elements. Maintains specialized engineering expertise within The Boeing Company.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus-fixed-fee contract type carries inherent cost risk.
- Lack of detailed cost data hinders value assessment.
Positive Signals
- Supports critical F/A-18 program.
- Includes international partner requirements.
- Long-standing relationship with incumbent provider.
Sector Analysis
This contract falls under Engineering Services, a sector critical for maintaining complex defense systems like the F/A-18. Spending in this area is essential for operational readiness but requires careful oversight due to specialized nature and potential for sole-source awards.
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 within the provided data, which is common for sole-source, specialized support contracts.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Department of the Navy to ensure fair pricing and effective service delivery. Robust performance metrics and regular reviews are crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Potential for cost overruns
- Limited transparency in pricing
- Lack of competitive benchmarking
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $71.6 million to THE BOEING COMPANY. CY-2025 INTEGRATED PRODUCT SUPPORT, FMS SHARE AND RAAF SPECIFIC, IN SUPPORT OF THE F/A-18 PROGRAM.
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 $71.6 million.
What is the period of performance?
Start: 2025-01-01. End: 2025-12-31.
What is the justification for the sole-source award, and how was the fixed fee determined to ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the need for continuity of support for a specific platform. The fixed fee in a Cost Plus Fixed Fee (CPFF) contract is negotiated based on estimated costs and a reasonable profit margin. However, without detailed cost data and the competitive bidding process, verifying the fairness and reasonableness of this fee is challenging and relies heavily on the contracting officer's negotiation and oversight.
What are the specific risks associated with the Cost Plus Fixed Fee contract type in this context, and what mitigation strategies are in place?
The primary risk with CPFF contracts is that the contractor may have less incentive to control costs, as the government bears the majority of the cost risk. The fixed fee provides some incentive, but cost overruns can still occur. Mitigation strategies include strong government oversight, detailed cost tracking, performance metrics, and clear definition of work scope to prevent scope creep. Regular audits and reviews are essential to ensure efficiency and prevent unnecessary expenditures.
How does this contract contribute to the overall effectiveness and readiness of the F/A-18 program, particularly considering the inclusion of FMS share and RAAF specifics?
This contract is crucial for maintaining the operational effectiveness and readiness of the F/A-18 program by providing essential integrated product support. Including FMS share and RAAF specifics ensures that allied nations receive the necessary support for their F/A-18 fleets, enhancing interoperability and joint operational capabilities. This integrated approach streamlines support, potentially improving response times and ensuring commonality in maintenance and logistics, thereby bolstering overall program effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001923R0008
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: $71,591,829
Exercised Options: $71,591,829
Current Obligation: $71,591,829
Subaward Activity
Number of Subawards: 24
Total Subaward Amount: $12,209,007
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001924D0128
IDV Type: IDC
Timeline
Start Date: 2025-01-01
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-12-23
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