Boeing awarded $9.56M for F/A-18 EW SCS support, a sole-source contract with a 5-year duration
Contract Overview
Contract Amount: $9,562,818 ($9.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-11-14
End Date: 2023-06-30
Contract Duration: 1,689 days
Daily Burn Rate: $5.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF F/A-18 ELECTRONIC WARFARE SCS SUPPORT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $9.6 million to THE BOEING COMPANY for work described as: IGF::OT::IGF F/A-18 ELECTRONIC WARFARE SCS SUPPORT Key points: 1. Contract awarded to a single, established provider, raising questions about competitive pricing. 2. Long contract duration suggests a need for sustained support, but limits flexibility. 3. Cost-plus-fixed-fee structure may incentivize cost increases, requiring close oversight. 4. Focus on electronic warfare systems indicates a critical capability for naval aviation. 5. Contract performance period spans over five years, aligning with aircraft lifecycle needs. 6. No small business set-aside indicates prime contractor is not a small business.
Value Assessment
Rating: questionable
The contract's value of $9.56 million over five years for specialized electronic warfare support appears reasonable on an annual basis. However, without competitive bidding, it is difficult to benchmark the true value for money. The cost-plus-fixed-fee (CPFF) contract type, while common for complex R&D or services where costs are uncertain, can lead to higher overall costs compared to fixed-price contracts if not managed diligently. Comparing this to similar sole-source EW support contracts for other naval aircraft would be necessary for a more definitive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, The Boeing Company, was solicited. This approach is typically used when only one responsible source is available or when there is a compelling justification for other reasons. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government than if multiple bids had been considered. The justification for this sole-source award would need to be thoroughly reviewed to understand why competition was not feasible.
Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible pricing through competitive negotiation, potentially resulting in higher expenditures for taxpayers.
Public Impact
Naval aviators operating F/A-18 aircraft will benefit from enhanced electronic warfare capabilities. Services delivered include support for critical electronic warfare systems, ensuring operational readiness. Geographic impact is likely concentrated around naval air stations where F/A-18s are based and maintained. Workforce implications include specialized technical support roles for maintaining and upgrading EW systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potential cost savings.
- Cost-plus-fixed-fee structure may lead to cost overruns if not managed effectively.
- Long contract duration could reduce flexibility to adopt newer technologies if they emerge.
Positive Signals
- Award to incumbent contractor (Boeing) suggests continuity of essential EW support.
- Contract duration aligns with the expected operational life of F/A-18 systems.
- Focus on critical EW systems addresses a key defense capability requirement.
Sector Analysis
The aerospace and defense sector is characterized by high R&D costs, long product development cycles, and significant government procurement. Electronic warfare systems are a crucial component of modern military aviation, encompassing technologies designed to protect aircraft from threats and disrupt enemy radar and communication systems. The market for EW systems is specialized, often dominated by a few large prime contractors like Boeing, who possess the necessary expertise and security clearances. This contract fits within the broader category of aircraft sustainment and modernization, a significant area of defense spending.
Small Business Impact
This contract was not set aside for small businesses, and the prime contractor, The Boeing Company, is a large aerospace firm. There is no indication of specific subcontracting requirements for small businesses within the provided data. The absence of a small business set-aside means that opportunities for small businesses to directly participate in this specific contract are limited, though they may still be involved as subcontractors to Boeing.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Given the sole-source nature and CPFF structure, robust oversight is crucial to monitor costs, ensure performance, and verify that the contractor is meeting all contractual obligations. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency would be enhanced through regular reporting requirements and performance reviews.
Related Government Programs
- F/A-18 Aircraft Sustainment
- Naval Aviation Electronic Warfare Systems
- Defense Contractor Support Services
- Aerospace Manufacturing and Support
Risk Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of competitive pricing data
Tags
defense, department-of-the-navy, missouri, aircraft-manufacturing, delivery-order, sole-source, cost-plus-fixed-fee, electronic-warfare, fa-18, boeing, large-business, sustainment
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.6 million to THE BOEING COMPANY. IGF::OT::IGF F/A-18 ELECTRONIC WARFARE SCS SUPPORT
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 $9.6 million.
What is the period of performance?
Start: 2018-11-14. End: 2023-06-30.
What is Boeing's track record with F/A-18 electronic warfare systems support contracts?
The Boeing Company has a long-standing relationship with the U.S. Navy and has been the prime contractor for the F/A-18 Super Hornet program. This includes extensive experience in developing, manufacturing, and sustaining the aircraft and its complex systems, including electronic warfare (EW) suites. Boeing's historical performance on similar contracts would likely involve providing technical support, upgrades, maintenance, and integration services for EW components. A detailed review of past performance evaluations, contract modifications, and any associated disputes or awards would provide a comprehensive understanding of their track record. Given their role as the original equipment manufacturer, their expertise is generally considered high, but oversight is still necessary to ensure cost-effectiveness and adherence to delivery schedules.
How does the $9.56 million contract value compare to similar EW support contracts for naval aircraft?
Benchmarking this $9.56 million contract value requires comparing it to similar sole-source or competed contracts for electronic warfare (EW) system support on other naval aircraft platforms, such as the F-35, P-8 Poseidon, or E-2 Hawkeye. Factors like the complexity of the EW suite, the scope of support (e.g., sustainment, upgrades, training), and the contract duration are critical for a fair comparison. Without access to proprietary data on comparable contracts, it's challenging to definitively state if this value is high or low. However, sole-source awards often carry a premium due to the lack of competitive pressure. Annualizing the cost ($9.56M / 5 years = ~$1.91M/year) provides a starting point for comparison against annual sustainment costs of other EW systems.
What are the primary risks associated with this sole-source, cost-plus-fixed-fee contract?
The primary risks associated with this sole-source, cost-plus-fixed-fee (CPFF) contract are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to inflated pricing and reduced incentive for the contractor to find cost efficiencies. The government may be paying more than it would in a competitive environment. Secondly, the CPFF structure, while providing flexibility for uncertain costs, carries the risk of cost overruns. The contractor is reimbursed for allowable costs plus a fixed fee, which can incentivize them to incur more costs to increase the absolute dollar amount of their fee if the fee is a percentage of costs. Effective government oversight, detailed cost tracking, and clear performance metrics are essential to mitigate these risks.
How effective is the Department of the Navy in overseeing sole-source EW support contracts?
The effectiveness of the Department of the Navy (DON) in overseeing sole-source EW support contracts can vary depending on the specific program, contracting office, and available resources. DON employs various oversight mechanisms, including contract specialists, program managers, and Defense Contract Management Agency (DCMA) representatives, to monitor performance, costs, and compliance. For sole-source CPFF contracts, rigorous oversight is particularly critical. This involves detailed audits of contractor expenditures, regular performance reviews, and proactive risk management. While the DON has established processes, the sheer volume and complexity of defense contracts mean that oversight effectiveness can be inconsistent. Inspector General reports and GAO audits often highlight areas needing improvement in contract oversight.
What is the historical spending trend for F/A-18 electronic warfare system support within the Department of Defense?
Historical spending on F/A-18 electronic warfare (EW) system support within the Department of Defense (DoD) has been substantial, reflecting the critical role of EW capabilities in naval aviation and the long service life of the F/A-18 platform. Spending typically includes sustainment, upgrades, modifications, spare parts, and technical services. Over the years, as the F/A-18 fleet has aged and faced evolving threats, investments in EW modernization have been necessary. This has likely resulted in consistent, multi-million dollar annual expenditures. Analyzing historical contract awards for EW support, including both competed and sole-source actions, would reveal trends in spending levels, the types of services procured, and the primary contractors involved. This specific $9.56M contract represents a portion of that ongoing investment.
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: $13,145,246
Exercised Options: $13,145,246
Current Obligation: $9,562,818
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $3,355,998
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: 2018-11-14
Current End Date: 2023-06-30
Potential End Date: 2023-06-30 00:00:00
Last Modified: 2025-12-03
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