Navy Awards Boeing $107.8M for F/A-18E/F PPP SLM Aircraft
Contract Overview
Contract Amount: $107,818,327 ($107.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-12-15
End Date: 2028-03-30
Contract Duration: 836 days
Daily Burn Rate: $129.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: F/A-18E/F PPP SLM AIRCRAFT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $107.8 million to THE BOEING COMPANY for work described as: F/A-18E/F PPP SLM AIRCRAFT Key points: 1. Contract awarded to The Boeing Company for critical naval aircraft. 2. Significant investment in advanced aircraft manufacturing capabilities. 3. Potential for cost overruns due to Cost Plus Incentive Fee structure. 4. Sector focus on advanced aerospace and defense manufacturing.
Value Assessment
Rating: good
The contract value of $107.8 million for F/A-18E/F PPP SLM Aircraft appears reasonable given the complexity and specialized nature of military aircraft production. Benchmarking against similar advanced aircraft procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to the specialized nature of the aircraft and the existing relationship with the sole manufacturer. This lack of competition may limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: Taxpayer funds are being used for a sole-source procurement, highlighting the need for robust oversight to ensure fair pricing and value for money.
Public Impact
Ensures continued readiness and modernization of the Navy's fighter jet fleet. Supports high-tech manufacturing jobs within the aerospace sector. Contributes to national defense capabilities and technological advancement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement limits competitive pricing.
- Cost Plus Incentive Fee contract type carries inherent cost overrun risk.
- Long contract duration increases exposure to market fluctuations.
Positive Signals
- Addresses critical defense needs for advanced aircraft.
- Supports a key defense contractor and its supply chain.
- Long-term delivery schedule allows for phased funding and production.
Sector Analysis
This contract falls within the Aerospace and Defense sector, specifically Aircraft Manufacturing. Spending in this sector is driven by national security requirements and technological innovation. Benchmarks for similar advanced aircraft procurements are typically in the hundreds of millions to billions of dollars.
Small Business Impact
While the prime contractor is The Boeing Company, the contract's execution likely involves numerous small and medium-sized businesses in the aerospace supply chain. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy is responsible for oversight. Given the sole-source nature and cost-plus contract type, rigorous monitoring of performance, costs, and adherence to incentive targets is crucial to ensure accountability and prevent waste.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Cost Plus Incentive Fee structure
- Long contract duration
- Potential for scope creep
- Dependency on a single supplier
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 $107.8 million to THE BOEING COMPANY. F/A-18E/F PPP 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 $107.8 million.
What is the period of performance?
Start: 2025-12-15. End: 2028-03-30.
What specific improvements or upgrades does the 'PPP SLM' designation entail for the F/A-18E/F, and how do these justify the sole-source award?
The 'PPP SLM' likely refers to specific upgrades or modifications to the F/A-18E/F Super Hornet, potentially involving enhanced avionics, weapons systems, or structural improvements. A sole-source award might be justified if these upgrades are proprietary to Boeing, require unique expertise, or are critical for maintaining fleet commonality and operational readiness, thus outweighing the benefits of a competitive bidding process.
What are the potential risks associated with the Cost Plus Incentive Fee (CPIF) contract type for this aircraft procurement?
A CPIF contract incentivizes both the contractor and the government to control costs. However, it carries risks. If the target cost is set too high or the incentive structure is not well-defined, costs could escalate beyond initial projections. The government might end up paying more than anticipated if the contractor achieves performance targets but at a higher-than-expected cost.
How does the extended contract performance period (2028) impact the overall value and risk for the Department of the Navy?
The extended performance period allows for a sustained production rate and integration of potential future upgrades, which can be beneficial for long-term fleet planning and maintaining industrial capacity. However, it also increases exposure to economic fluctuations, technological obsolescence, and potential changes in strategic requirements, necessitating continuous monitoring and flexibility in contract management.
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: $107,818,327
Exercised Options: $107,818,327
Current Obligation: $107,818,327
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: 2028-03-30
Potential End Date: 2028-03-30 00:00:00
Last Modified: 2025-12-16
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