Navy awards $27.4M F/A-18 SCS contract to Boeing, raising competition concerns
Contract Overview
Contract Amount: $27,445,338 ($27.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-09-28
End Date: 2023-06-13
Contract Duration: 1,719 days
Daily Burn Rate: $16.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF F/A-18 H14 SYSTEM CONFIGURATION SET (SCS)
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $27.4 million to THE BOEING COMPANY for work described as: IGF::OT::IGF F/A-18 H14 SYSTEM CONFIGURATION SET (SCS) Key points: 1. Contract awarded to a single, large business prime. 2. No small business participation noted. 3. Cost-plus fixed fee contract type can incentivize cost overruns. 4. Long duration (1719 days) may indicate complex requirements or extended need.
Value Assessment
Rating: questionable
The contract's cost-plus fixed fee structure, combined with a lack of competitive bidding, raises questions about whether the $27.4 million price represents the best value. Benchmarking against similar aircraft component contracts would be necessary for a definitive assessment.
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 for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this $27.4 million award means taxpayers may not have received the most cost-effective solution.
Public Impact
Impacts readiness and operational capability of the F/A-18 fleet. Potential for increased maintenance and upgrade costs for naval aviation. Highlights reliance on a single prime contractor for critical aircraft systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- No small business participation
- Long contract duration
Positive Signals
- Awarded to established prime contractor
- Supports critical defense platform
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing. Spending benchmarks for similar sole-source awards on complex defense systems are often high, but competitive pricing is typically lower.
Small Business Impact
There is no indication of small business participation in this contract. This represents a missed opportunity to leverage small business capabilities and potentially achieve cost savings through specialized solutions.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure cost reasonableness and performance. The Department of the Navy should document the justification for not competing this requirement.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- No small business subcontracting plan
- Long contract duration
- Potential for cost growth
Tags
aircraft-manufacturing, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.4 million to THE BOEING COMPANY. IGF::OT::IGF F/A-18 H14 SYSTEM CONFIGURATION SET (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 $27.4 million.
What is the period of performance?
Start: 2018-09-28. End: 2023-06-13.
What is the justification for the sole-source award of the F/A-18 SCS contract to Boeing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Without specific documentation, it's difficult to ascertain the precise rationale, but it often relates to the complexity and integration of specialized aircraft systems.
What are the potential risks associated with a cost-plus fixed fee contract for aircraft systems?
Cost-plus fixed fee contracts carry risks of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. This can reduce the incentive for the contractor to control costs, potentially leading to higher overall expenditures for the government. Effective oversight is crucial to manage these risks.
How does the lack of competition impact the long-term sustainment costs of the F/A-18 fleet?
A lack of competition for critical components like the SCS can lead to higher long-term sustainment costs. Without competitive pressure, the incumbent sole-source provider may face less incentive to offer competitive pricing for spare parts, upgrades, and support services over the life of the F/A-18 fleet.
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: COST PLUS FIXED FEE (U)
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: $39,980,897
Exercised Options: $39,980,897
Current Obligation: $27,445,338
Actual Outlays: $2,581,240
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $251,033
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N6893618D0026
IDV Type: IDC
Timeline
Start Date: 2018-09-28
Current End Date: 2023-06-13
Potential End Date: 2023-06-13 00:00:00
Last Modified: 2025-12-01
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