Navy Awards $44.2M for F/A-18E/F Aircraft, Boeing Sole Source

Contract Overview

Contract Amount: $44,239,584 ($44.2M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2025-09-24

End Date: 2027-05-24

Contract Duration: 607 days

Daily Burn Rate: $72.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: F/A-18E/F OP25 SLM AIRCRAFT

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $44.2 million to THE BOEING COMPANY for work described as: F/A-18E/F OP25 SLM AIRCRAFT Key points: 1. Significant contract value for specialized aircraft. 2. Sole-source award to Boeing raises competition concerns. 3. Potential for cost overruns with Cost Plus Incentive Fee contract type. 4. Aircraft Manufacturing sector is critical for defense readiness.

Value Assessment

Rating: questionable

The contract value of $44.2M for a delivery order is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar advanced aircraft.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award to The Boeing Company. This limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The lack of competition in this sole-source award could lead to inflated prices, impacting taxpayer funds negatively.

Public Impact

Ensures continued availability of critical F/A-18E/F aircraft for naval operations. Supports advanced aerospace manufacturing capabilities within the US. Potential for extended reliance on a single supplier for this aircraft platform.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Incentive Fee contract type
Lack of transparency in pricing

Positive Signals

Supports critical defense asset
Long-term contract duration

Sector Analysis

This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is crucial for national security but requires careful oversight due to high costs and specialized nature.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large sole-source awards often bypass small business participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight from the Department of Defense to ensure fair pricing and prevent potential contractor overreach. Transparency in cost reporting will be key.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competition.
Cost Plus Incentive Fee contract type carries inherent cost risk.
Lack of transparency in pricing justification.
Potential for vendor lock-in.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.2 million to THE BOEING COMPANY. F/A-18E/F OP25 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 $44.2 million.

What is the period of performance?

Start: 2025-09-24. End: 2027-05-24.

What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or urgent needs. The Department of the Navy should provide detailed documentation supporting this decision. To ensure fair pricing, robust cost analysis, independent government cost estimates, and stringent negotiation tactics are essential, especially with a Cost Plus Incentive Fee structure.

What are the long-term risks associated with relying on a single supplier for the F/A-18E/F aircraft?

Long-term reliance on a single supplier can lead to reduced competition, potential price increases, and vulnerability if the supplier faces production issues or decides to exit the market. It can also stifle innovation by limiting alternative solutions. The government should explore strategies for fostering competition in future procurements or ensuring robust long-term support agreements.

How does the Cost Plus Incentive Fee (CPIF) structure impact cost control and taxpayer value in this contract?

A CPIF contract incentivizes the contractor to control costs by sharing in any savings or overruns against a target cost. While it aims for better value than a simple cost-plus contract, it still carries inherent risk. If the target cost is set too high or the incentive structure is weak, it can still lead to significant taxpayer expense. Effective government oversight is crucial to manage this.

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: $44,239,584

Exercised Options: $44,239,584

Current Obligation: $44,239,584

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,454,004

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