Kuwait's F/A-18E TOFT Contract Awarded to Boeing for $59.4M
Contract Overview
Contract Amount: $59,409,918 ($59.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-12-21
End Date: 2025-12-31
Contract Duration: 2,567 days
Daily Burn Rate: $23.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F/A-18E TOFT #1 FOR KUWAIT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $59.4 million to THE BOEING COMPANY for work described as: F/A-18E TOFT #1 FOR KUWAIT Key points: 1. Contract awarded to a single, established prime contractor. 2. Significant investment in defense capabilities for an allied nation. 3. Potential for long-term sustainment and upgrade opportunities. 4. Limited transparency on specific performance metrics. 5. Sector focus on aerospace and defense manufacturing.
Value Assessment
Rating: fair
The contract value of $59.4 million for F/A-18E TOFT is difficult to benchmark without specific details on the scope of work and comparable international sales. Pricing is likely influenced by the specialized nature of the equipment and the sole-source award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited competition scenario, potentially due to specific requirements or existing platform integration. This limits price discovery and competitive pressure.
Taxpayer Impact: Taxpayer impact is indirect, as this contract supports foreign military sales, contributing to the U.S. defense industrial base and diplomatic relations, rather than direct U.S. government spending on domestic operations.
Public Impact
Enhances Kuwait's air combat capabilities with advanced fighter jet technology. Supports U.S. foreign military sales objectives and strengthens regional security partnerships. Contributes to the U.S. aerospace and defense manufacturing sector, sustaining jobs and expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competitive bidding may lead to suboptimal pricing.
- Contract duration extends to 2025, requiring ongoing monitoring.
- Specific performance metrics and deliverables are not detailed.
Positive Signals
- Supports a key U.S. ally with advanced defense assets.
- Leverages established Boeing production capabilities for F/A-18E.
- Firm fixed price contract provides cost certainty for the buyer.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on military aircraft components and support. Spending in this sector is often characterized by high unit costs, long development cycles, and significant government involvement, both domestically and through foreign military sales.
Small Business Impact
The data does not indicate any specific provisions or subcontracting requirements for small businesses within this contract. As a sole-source award to a large prime contractor, direct small business participation may be limited unless incorporated through Boeing's internal supply chain.
Oversight & Accountability
Oversight would typically be managed by the Department of the Navy, ensuring contract compliance and delivery according to specifications. The firm fixed price nature provides some cost control, but monitoring performance and potential change orders remains crucial.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding.
- Potential for cost overruns if scope is not clearly defined.
- Dependence on a single supplier for critical defense assets.
- Long contract duration increases exposure to market and technological changes.
Tags
other-commercial-and-service-industry-ma, department-of-defense, mo, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.4 million to THE BOEING COMPANY. F/A-18E TOFT #1 FOR KUWAIT
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 $59.4 million.
What is the period of performance?
Start: 2018-12-21. End: 2025-12-31.
What is the specific "TOFT" designation and its impact on the F/A-18E's capabilities and cost?
TOFT likely refers to a specific upgrade package or modification for the F/A-18E Super Hornet, potentially related to targeting, operational, or training functions. The exact nature of TOFT is crucial for understanding the value proposition and cost justification. Without this detail, it's difficult to assess if the $59.4 million represents a fair price for the enhanced capabilities or modifications provided.
Given the limited competition, what mechanisms are in place to ensure the $59.4 million contract price is reasonable and reflects fair market value?
As a limited competition or sole-source award, price reasonableness is typically assessed through techniques like comparison to previous contracts for similar items, analysis of contractor cost data (if available), or benchmarking against industry standards. The Department of the Navy would likely employ these methods, but the absence of competitive bids inherently reduces the pressure for the lowest possible price.
How does this contract contribute to the overall effectiveness and readiness of Kuwait's air force, and what are the long-term implications?
This contract directly enhances Kuwait's air combat effectiveness by providing advanced F/A-18E aircraft or related support. The long-term implications include improved regional security posture for Kuwait and strengthened military ties with the U.S. However, it also necessitates ongoing sustainment, training, and potential future upgrade investments, which require separate planning and budgeting.
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: N6134018R0065
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: $59,688,879
Exercised Options: $59,409,918
Current Obligation: $59,409,918
Subaward Activity
Number of Subawards: 60
Total Subaward Amount: $10,532,843
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-12-21
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-04-15
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