Boeing Awarded $98.6M for F/A-18 Radar Development, Facing Limited Competition
Contract Overview
Contract Amount: $98,617,403 ($98.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-12-17
End Date: 2025-06-30
Contract Duration: 2,387 days
Daily Burn Rate: $41.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF F/A-18 RADAR DEV&BIT STABILITY SAR BURNDOWN
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $98.6 million to THE BOEING COMPANY for work described as: IGF::OT::IGF F/A-18 RADAR DEV&BIT STABILITY SAR BURNDOWN Key points: 1. Significant contract value for advanced radar systems. 2. Boeing is the sole provider, raising competition concerns. 3. Potential risks associated with sole-source procurement. 4. Spending falls within the Aircraft Manufacturing sector.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure for development and testing may lead to cost overruns. Benchmarking is difficult without competitive bids, but the total award value is substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Boeing. This limits price discovery and potentially increases costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this critical radar development.
Public Impact
Enhances the combat capabilities of the F/A-18 Super Hornet fleet. Supports advanced radar technology crucial for air superiority. Impacts the readiness and effectiveness of naval aviation assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
Positive Signals
- Critical technology development
- Supports key defense platform
Sector Analysis
This contract falls under the Aircraft Manufacturing sector, specifically for advanced avionics development. Spending benchmarks for similar radar development contracts are difficult to ascertain due to the specialized nature and sole-source award.
Small Business Impact
There is no indication of small business participation in this sole-source contract awarded directly to The Boeing Company.
Oversight & Accountability
Oversight will be critical to manage costs and ensure performance under the cost-plus-fixed-fee structure, especially given the sole-source nature of the award.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Cost-plus contract type
- Lack of competitive bidding
- Potential for cost overruns
- Long contract duration
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 $98.6 million to THE BOEING COMPANY. IGF::OT::IGF F/A-18 RADAR DEV&BIT STABILITY SAR BURNDOWN
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 $98.6 million.
What is the period of performance?
Start: 2018-12-17. End: 2025-06-30.
What is the projected cost growth potential for this cost-plus-fixed-fee contract?
Cost-plus-fixed-fee contracts inherently carry a risk of cost growth as the contractor is reimbursed for allowable costs plus a predetermined fee. Without competitive pressure, the incentive to control costs may be diminished. Robust oversight and clear performance metrics are essential to mitigate this risk and ensure the final cost aligns with the initial projections.
What are the risks associated with relying on a sole-source provider for critical defense technology?
Sole-source procurement eliminates competition, potentially leading to higher prices and reduced innovation. It also creates a dependency on a single supplier, which can pose supply chain risks and limit flexibility if the contractor's performance falters or if alternative technologies emerge. This can impact long-term defense readiness and technological advantage.
How will the effectiveness of the developed radar system be validated without competitive alternatives?
Effectiveness will be validated through rigorous government testing and evaluation protocols, comparing performance against predefined technical specifications and operational requirements. Independent verification and validation (IV&V) by government agencies or third-party contractors will be crucial. Feedback from F/A-18 pilots and operational units during testing phases will also inform the assessment of the radar's real-world effectiveness.
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: $156,235,030
Exercised Options: $156,235,030
Current Obligation: $98,617,403
Actual Outlays: $15,773,748
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $70,946,951
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: 2018-12-17
Current End Date: 2025-06-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-12-02
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