Boeing Awarded $37.7M for F/A-18 Onsite Test Aircraft Engineering Services by Navy
Contract Overview
Contract Amount: $37,727,780 ($37.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-06-14
End Date: 2021-03-01
Contract Duration: 991 days
Daily Burn Rate: $38.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF ONSITE TEST AIRCRAFT ENGINEERING SERVICES F/A-18 SCS
Place of Performance
Location: RIDGECREST, KERN County, CALIFORNIA, 93555
Plain-Language Summary
Department of Defense obligated $37.7 million to THE BOEING COMPANY for work described as: IGF::OT::IGF ONSITE TEST AIRCRAFT ENGINEERING SERVICES F/A-18 SCS Key points: 1. Contract awarded to The Boeing Company for critical F/A-18 engineering support. 2. Significant value of $37.7 million highlights the importance of aircraft sustainment. 3. Sole-source award raises questions about competition and potential cost efficiencies. 4. Spending falls within the Defense sector, specifically aircraft manufacturing.
Value Assessment
Rating: fair
The contract value of $37.7 million for engineering services needs comparison against similar F/A-18 support contracts. Without benchmark data, assessing optimal pricing is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This limits price discovery and potentially leads to higher costs compared to a competitive environment.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential engineering services.
Public Impact
Ensures continued operational readiness of the F/A-18 fleet. Supports critical engineering expertise for a key defense asset. Potential for increased costs due to sole-source nature impacts defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
Positive Signals
- Essential service for defense asset
- Long-term support
Sector Analysis
This contract falls under the Defense sector, specifically supporting the F/A-18 aircraft. Spending benchmarks for aircraft engineering services can vary widely based on complexity and duration.
Small Business Impact
The data provided does not indicate any subcontracting to small businesses. Further analysis would be needed to determine if small business participation was considered or required.
Oversight & Accountability
Oversight of sole-source contracts is crucial to ensure fair pricing and prevent potential waste. The Department of the Navy's contracting office managed this award.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in justification.
- No indication of small business participation.
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.7 million to THE BOEING COMPANY. IGF::OT::IGF ONSITE TEST AIRCRAFT ENGINEERING SERVICES F/A-18 SCS
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 $37.7 million.
What is the period of performance?
Start: 2018-06-14. End: 2021-03-01.
What was the justification for awarding this contract sole-source instead of competing it?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of alternative sources. Without specific documentation, it's difficult to ascertain the precise reason. However, sole-source awards warrant close scrutiny to ensure they are truly necessary and that the government has negotiated the best possible price.
What is the potential cost overrun risk associated with this sole-source contract?
Sole-source contracts inherently carry a higher risk of cost overruns due to the absence of competitive pressure. The government must rely on robust negotiation and oversight to mitigate this. Without a competitive baseline, it's harder to identify and challenge price increases, potentially leading to expenditures exceeding initial estimates or market value.
How effective is this contract in ensuring the long-term readiness of the F/A-18 fleet?
This contract is likely effective in ensuring the immediate and near-term readiness of the F/A-18 fleet by providing essential engineering services. However, the long-term effectiveness and cost-efficiency depend on ongoing oversight and potential future competition for sustainment needs. Continuous evaluation of performance and cost is vital.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6893615R0072
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: $37,727,780
Exercised Options: $37,727,780
Current Obligation: $37,727,780
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $42,315
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N6893618D0026
IDV Type: IDC
Timeline
Start Date: 2018-06-14
Current End Date: 2021-03-01
Potential End Date: 2021-03-01 00:00:00
Last Modified: 2021-02-03
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