DoD Awards Boeing $37.9M for P-8 Trainer Hardware and Kits for Canada
Contract Overview
Contract Amount: $37,909,683 ($37.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-07-29
End Date: 2029-11-30
Contract Duration: 1,585 days
Daily Burn Rate: $23.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LONG LEAD HARDWARE AND SIK KITS FOR P-8 TRAINERS FOR FMS CUSTOMER CANADA.
Place of Performance
Location: SAINT CHARLES, SAINT CHARLES County, MISSOURI, 63301
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $37.9 million to THE BOEING COMPANY for work described as: LONG LEAD HARDWARE AND SIK KITS FOR P-8 TRAINERS FOR FMS CUSTOMER CANADA. Key points: 1. Significant award for specialized aircraft components supporting foreign military sales. 2. Sole-source procurement raises questions about price discovery and competition. 3. Long lead time hardware suggests potential supply chain risks. 4. Focus on trainer aircraft indicates investment in future operational readiness.
Value Assessment
Rating: fair
The award value of $37.9 million for long lead hardware and SIK kits is substantial. Without comparable contract data or a competitive bidding process, assessing the pricing against similar contracts is difficult. The firm fixed price contract type offers some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government and the FMS customer. The justification for sole-source is not provided.
Taxpayer Impact: Taxpayer funds are being used for this FMS sale, and the lack of competition may result in a less favorable price than could be achieved through a competitive process.
Public Impact
Supports a key NATO ally (Canada) with advanced training capabilities. Ensures continued operational readiness and modernization of allied air forces. Highlights the U.S. role in international defense partnerships. Potential for follow-on contracts for integration and support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Long lead time hardware
- Foreign Military Sales (FMS) complexity
Positive Signals
- Supports allied defense capabilities
- Firm fixed price contract
Sector Analysis
This award falls within the Aircraft Engine and Engine Parts Manufacturing sector. Spending in this area is critical for maintaining and modernizing military aviation fleets, both domestically and for allies. Benchmarks for similar specialized hardware can vary widely based on complexity and quantity.
Small Business Impact
The prime contractor is The Boeing Company, a large aerospace firm. There is no indication in the provided data whether small businesses will be involved as subcontractors on this specific delivery order.
Oversight & Accountability
The Department of the Navy, as the contracting activity, is responsible for oversight. The firm fixed price contract type provides a degree of cost control, but the sole-source nature warrants scrutiny to ensure fair pricing.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source procurement may lead to inflated costs.
- Long lead times increase risk of schedule delays.
- Lack of competition limits price transparency.
- Potential for supply chain disruptions impacting delivery.
- Reliance on a single contractor for critical components.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.9 million to THE BOEING COMPANY. LONG LEAD HARDWARE AND SIK KITS FOR P-8 TRAINERS FOR FMS CUSTOMER CANADA.
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 $37.9 million.
What is the period of performance?
Start: 2025-07-29. End: 2029-11-30.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one source can meet. Without this specific justification, it's difficult to assess the necessity. To ensure fair and reasonable pricing, the government might rely on historical pricing data, independent cost estimates, or price analysis techniques, even without competition.
What are the specific risks associated with the 'long lead' nature of this hardware, and how are they being mitigated?
Long lead time hardware implies that components require significant manufacturing or procurement time, increasing the risk of delays, cost overruns due to market fluctuations, or obsolescence. Mitigation strategies could include close monitoring of the supply chain, proactive engagement with suppliers, securing raw materials early, and building schedule buffers into the contract.
How does this procurement align with broader P-8 Poseidon program goals and the strategic objectives of the FMS customer, Canada?
This procurement directly supports the operational readiness and training infrastructure for Canada's P-8 Poseidon fleet, a critical maritime patrol and anti-submarine warfare aircraft. It aligns with NATO interoperability goals and Canada's strategic defense needs, ensuring they can effectively contribute to collective security operations.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $37,909,683
Exercised Options: $37,909,683
Current Obligation: $37,909,683
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,684,358
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001921G0006
IDV Type: BOA
Timeline
Start Date: 2025-07-29
Current End Date: 2029-11-30
Potential End Date: 2029-11-30 00:00:00
Last Modified: 2025-10-22
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