Navy awards $181.6M Boeing contract for P-8 UK training systems via FMS
Contract Overview
Contract Amount: $181,556,243 ($181.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-03-01
End Date: 2024-12-31
Contract Duration: 2,132 days
Daily Burn Rate: $85.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PR 1300769647 TO PROCURE P-8 UK TRAINING SYSTEMS VIA FMS LOA # UK-P-LVK
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $181.6 million to THE BOEING COMPANY for work described as: PR 1300769647 TO PROCURE P-8 UK TRAINING SYSTEMS VIA FMS LOA # UK-P-LVK Key points: 1. Contract awarded to a single, established provider (Boeing). 2. Significant investment in advanced training systems for the P-8 Poseidon aircraft. 3. Foreign Military Sales (FMS) route indicates international cooperation and specific national requirements. 4. Contract duration extends over five years, suggesting a long-term training need.
Value Assessment
Rating: good
The contract value of $181.6 million for training systems appears reasonable given the specialized nature of P-8 aircraft and the FMS procurement route. Benchmarking is difficult without specific system details, but it aligns with typical large-scale defense training system procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is procured via FMS, which often limits direct competition to ensure interoperability and meet specific allied nation requirements. This approach prioritizes a trusted supplier relationship over competitive price discovery.
Taxpayer Impact: Taxpayer funds are utilized for a foreign military sale, supporting allied defense capabilities and potentially influencing international security partnerships.
Public Impact
Enhances pilot and crew readiness for the P-8 maritime patrol aircraft. Supports the United Kingdom's defense capabilities and interoperability with US forces. Facilitates technology transfer and sustainment of advanced training solutions. Contributes to the broader US foreign policy objectives through defense cooperation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to FMS.
- Long contract duration may require performance reviews.
- Reliance on a single contractor for critical training systems.
Positive Signals
- Supports a key US ally.
- Procures advanced, specialized training equipment.
- Ensures P-8 operational readiness.
Sector Analysis
This contract falls within the defense sector, specifically focusing on specialized training systems for advanced aircraft like the P-8 Poseidon. Spending in this area is driven by technological advancements, platform upgrades, and international partnerships.
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 highly specialized defense systems.
Oversight & Accountability
Oversight would typically involve the Department of the Navy managing the FMS process, ensuring compliance with international agreements and delivery schedules. Accountability rests with Boeing for system delivery and with the FMS process managers for adherence to terms.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition
- FMS procurement route
- Long-term reliance on a single supplier
- Potential for cost overruns if not managed tightly
- Dependency on foreign partner requirements
Tags
other-commercial-and-service-industry-ma, department-of-defense, mo, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $181.6 million to THE BOEING COMPANY. PR 1300769647 TO PROCURE P-8 UK TRAINING SYSTEMS VIA FMS LOA # UK-P-LVK
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 $181.6 million.
What is the period of performance?
Start: 2019-03-01. End: 2024-12-31.
What is the specific breakdown of training system components and their individual costs?
The provided data does not detail the specific components of the P-8 UK training systems or their individual costs. A full breakdown would require access to the detailed contract line items and specifications, which are often proprietary or classified under FMS agreements. Understanding this would allow for a more granular assessment of value for money.
What are the performance metrics and acceptance criteria for the training systems?
Performance metrics and acceptance criteria are crucial for ensuring the training systems meet the UK's operational requirements. These details are typically outlined in the contract's statement of work and technical exhibits. Without them, it's difficult to assess the effectiveness of the delivered systems beyond the supplier's assurance.
Are there any provisions for sustainment, upgrades, or long-term support beyond the initial delivery?
The contract duration extends to December 2024, suggesting initial delivery and potential initial operational support. However, the data doesn't explicitly detail long-term sustainment or upgrade plans. Such provisions are often negotiated separately or in subsequent contracts to ensure the training systems remain effective and relevant over the P-8's lifecycle.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6134018R0009
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $189,823,900
Exercised Options: $181,556,243
Current Obligation: $181,556,243
Subaward Activity
Number of Subawards: 87
Total Subaward Amount: $14,224,515
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-03-01
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2025-09-15
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