Navy Awards Boeing $37M for F/A-18E/F Aircraft, Extending Production Through 2027
Contract Overview
Contract Amount: $37,026,825 ($37.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-09-24
End Date: 2027-04-30
Contract Duration: 583 days
Daily Burn Rate: $63.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: F/A-18E/F OP25 LOT5 SLM AIRCRAFT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $37.0 million to THE BOEING COMPANY for work described as: F/A-18E/F OP25 LOT5 SLM AIRCRAFT Key points: 1. Significant contract value for advanced fighter aircraft production. 2. Sole-source award to Boeing raises questions about competition. 3. Potential risks associated with single-supplier reliance and cost-plus contracts. 4. Spending aligns with the defense sector's ongoing aircraft modernization efforts.
Value Assessment
Rating: fair
The contract value of $37M for 0 aircraft (likely a placeholder or partial value) is difficult to assess without a clear unit count or comparison to similar lots. Cost-plus contracts can lead to higher final costs than fixed-price agreements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This is a sole-source award, indicating a lack of competitive bidding. This method limits price discovery and may result in higher costs for taxpayers compared to a competed contract.
Taxpayer Impact: Taxpayer funds are committed without exploring potentially lower-cost alternatives through competition.
Public Impact
Ensures continued production of critical naval air assets. Supports jobs and economic activity within the defense manufacturing sector. Potential for cost overruns due to the contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of clear unit count for value assessment
Positive Signals
- Continued production of essential defense equipment
- Supports established defense contractor
Sector Analysis
This contract falls within the defense sector, specifically aircraft manufacturing. Spending benchmarks for similar sole-source, cost-plus contracts for advanced fighter jets can vary widely based on specific configurations and production phases.
Small Business Impact
This contract is awarded to a large prime contractor, The Boeing Company. There is no indication of subcontracting opportunities for small businesses within this specific award notice.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The cost-plus incentive fee structure requires careful monitoring to ensure cost control and contractor performance align with incentives.
Related Government Programs
- Aircraft 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.
- Lack of clear unit count for value assessment.
- Long contract duration (through April 2027).
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 $37.0 million to THE BOEING COMPANY. F/A-18E/F OP25 LOT5 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 $37.0 million.
What is the period of performance?
Start: 2025-09-24. End: 2027-04-30.
What is the total expected cost and number of aircraft for this contract lot, and how does it compare to previous lots?
The provided data lists a contract value of $37,026,825.16 but indicates 0 aircraft. This suggests the value may represent an initial funding increment or a partial estimate. A comprehensive analysis requires the total contract value and the specific number of aircraft to be procured under this lot for accurate cost per unit and trend analysis against historical data.
What are the specific cost drivers and performance metrics incentivized in this Cost Plus Incentive Fee (CPIF) contract?
The CPIF contract type aims to incentivize both the contractor and the government to control costs while achieving performance targets. Specific cost drivers would include materials, labor, and overhead. The incentive structure likely focuses on meeting delivery schedules, performance specifications, and potentially reducing costs below a target price, with shared savings or penalties.
What justification was provided for the sole-source award, and what steps are being taken to ensure fair pricing?
Sole-source awards typically require a justification, such as unique capabilities or lack of alternatives. The government's role is to ensure fair and reasonable pricing through various methods, including historical price analysis, should-cost analysis, and potentially independent cost estimates, despite the absence of direct competition.
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: $37,026,825
Exercised Options: $37,026,825
Current Obligation: $37,026,825
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $1,149,620
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: 2025-09-24
Current End Date: 2027-04-30
Potential End Date: 2027-04-30 00:00:00
Last Modified: 2025-09-24
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