Navy Awards Boeing $150M for F/A-18E/F SLM Aircraft Manufacturing
Contract Overview
Contract Amount: $150,033,362 ($150.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-12-15
End Date: 2028-01-31
Contract Duration: 777 days
Daily Burn Rate: $193.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: F/A-18E/F SLM SAN ANTONIO AIRCRAFT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $150.0 million to THE BOEING COMPANY for work described as: F/A-18E/F SLM SAN ANTONIO AIRCRAFT Key points: 1. Significant contract value for advanced fighter jet production. 2. Sole reliance on Boeing raises competition concerns. 3. Potential for cost overruns with Cost Plus Incentive Fee contract type. 4. Aircraft Manufacturing sector sees substantial defense investment.
Value Assessment
Rating: fair
The contract value of $150M for F/A-18E/F SLM aircraft appears within a reasonable range for specialized defense manufacturing. However, without specific per-unit cost data or comparison to similar sole-source contracts, a definitive assessment of pricing efficiency is challenging.
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 price discovery and may result in higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The absence of competition for this significant defense contract means taxpayers may not be receiving the best possible price, potentially leading to increased overall defense spending.
Public Impact
Ensures continued production of critical naval air assets. Supports advanced fighter jet capabilities for the U.S. Navy. Impacts the defense industrial base and associated employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Incentive Fee contract type
- Long contract duration
Positive Signals
- Secures essential military hardware
- Supports a key defense contractor
Sector Analysis
The Aircraft Manufacturing sector, particularly for defense applications, is characterized by high barriers to entry and significant R&D investment. Spending benchmarks for fighter jet programs are typically in the hundreds of millions to billions, making this $150M award substantial but not exceptionally large within the context of major defense procurement.
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 the provided data, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. The Cost Plus Incentive Fee structure requires careful monitoring of performance and costs to ensure value for money and prevent excessive profit.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price competition.
- Cost Plus Incentive Fee contract type carries inherent cost overrun risk.
- Long contract duration increases exposure to market and technical changes.
- Lack of transparency on per-unit cost makes value assessment difficult.
Tags
aircraft-manufacturing, department-of-defense, mo, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $150.0 million to THE BOEING COMPANY. F/A-18E/F SLM SAN ANTONIO 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 $150.0 million.
What is the period of performance?
Start: 2025-12-15. End: 2028-01-31.
What is the projected cost per aircraft under this contract, and how does it compare to previous F/A-18E/F procurements or similar aircraft?
The provided data does not specify the number of aircraft to be delivered, making it impossible to calculate a precise per-unit cost. Without this information, a direct comparison to previous procurements or similar aircraft is not feasible. Further analysis would require details on the quantity of aircraft included in the $150M award.
What are the specific incentive metrics and target costs associated with the Cost Plus Incentive Fee structure, and what are the potential risks of cost overruns?
The specific incentive metrics and target costs are not detailed in the provided data. The Cost Plus Incentive Fee (CPIF) structure aims to incentivize contractor efficiency by sharing cost savings or overruns. However, risks of cost overruns remain, especially in complex manufacturing, if targets are not well-defined or if unforeseen technical challenges arise.
How will the Department of the Navy ensure effective competition for future F/A-18E/F sustainment or upgrade contracts, given this sole-source award?
The Department of the Navy should explore strategies to foster future competition, such as breaking down future requirements into smaller, more competitive packages or actively seeking alternative sources for sustainment and upgrades. Proactive market research and engagement with potential new entrants could mitigate the long-term effects of this sole-source award.
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 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: $150,033,362
Exercised Options: $150,033,362
Current Obligation: $150,033,362
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001926D0008
IDV Type: IDC
Timeline
Start Date: 2025-12-15
Current End Date: 2028-01-31
Potential End Date: 2028-01-31 00:00:00
Last Modified: 2025-12-16
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