DoD Awards Boeing $32.8M for F/A-18 Instructor Pilot Services Amidst Limited Competition
Contract Overview
Contract Amount: $32,805,823 ($32.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-11-01
End Date: 2026-10-31
Contract Duration: 1,460 days
Daily Burn Rate: $22.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: F/A-18 KUWAIT INSTRUCTOR PILOT
Plain-Language Summary
Department of Defense obligated $32.8 million to THE BOEING COMPANY for work described as: F/A-18 KUWAIT INSTRUCTOR PILOT Key points: 1. Contract awarded to a single, large business prime. 2. Engineering services sector sees significant DoD spending. 3. Risk of cost overruns due to firm fixed-price contract. 4. Limited competition may impact price discovery and value.
Value Assessment
Rating: fair
The contract value of $32.8 million for instructor pilot services appears reasonable given the specialized nature of the work and the duration. However, without specific benchmarks for similar F/A-18 training contracts, a precise value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited source award. This lack of broad competition limits the government's ability to leverage market forces to achieve the best possible pricing.
Taxpayer Impact: Taxpayer funds are utilized for specialized military training services. The limited competition structure may result in a higher cost than if multiple vendors were engaged.
Public Impact
Ensures continued readiness and proficiency for F/A-18 aircrews. Supports critical training infrastructure for naval aviation. Potential for knowledge transfer and skill development within the military.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Firm Fixed Price contract risk
- Potential for sole-source dependency
Positive Signals
- Supports critical defense training
- Long-term contract duration provides stability
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense aviation training. DoD spending in this area is substantial, reflecting the ongoing need for advanced technical and operational support for military platforms.
Small Business Impact
The contract was awarded to a large business prime (The Boeing Company) and does not indicate any subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The firm fixed-price nature of the contract implies a focus on delivery within the agreed-upon cost, but monitoring performance and potential scope creep remains crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition may lead to higher costs.
- Contractor performance risk under firm fixed-price.
- Potential for vendor lock-in.
- Lack of transparency in pricing due to limited competition.
Tags
engineering-services, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.8 million to THE BOEING COMPANY. F/A-18 KUWAIT INSTRUCTOR PILOT
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 $32.8 million.
What is the period of performance?
Start: 2022-11-01. End: 2026-10-31.
What is the historical cost performance for similar F/A-18 instructor pilot training contracts awarded by the DoD?
Historical cost performance data for similar F/A-18 instructor pilot training contracts is not readily available in the public domain. Analyzing past awards, including their original values, change orders, and final costs, would provide a crucial benchmark. This would help determine if the current $32.8 million award is competitive or potentially inflated due to the limited competition.
What are the specific risks associated with a firm fixed-price contract for specialized instructor pilot services?
A firm fixed-price contract for specialized instructor pilot services carries risks of cost overruns for the contractor if unforeseen challenges arise, potentially leading to reduced quality or contractor default. Conversely, if the contractor significantly underestimates costs, the government might overpay for the services rendered, especially in a limited competition scenario where market checks are absent.
How effectively does this contract ensure the transfer of critical skills to military personnel?
The effectiveness of skill transfer depends heavily on the quality of the instructors provided by Boeing and the curriculum's alignment with current operational needs. While the contract specifies instructor pilot services, the metrics for measuring the actual proficiency gained by the trainees are not detailed. Robust performance metrics and feedback mechanisms are essential to ensure effective knowledge transfer.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6134021R0068
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $36,892,161
Exercised Options: $32,805,823
Current Obligation: $32,805,823
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-11-01
Current End Date: 2026-10-31
Potential End Date: 2027-10-31 00:00:00
Last Modified: 2025-10-30
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)