Boeing's F/A-18 Growler Block II Contract Exceeds $53M, Raises Concerns Over Competition
Contract Overview
Contract Amount: $53,140,994 ($53.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-02-21
End Date: 2023-06-13
Contract Duration: 1,573 days
Daily Burn Rate: $33.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF F/A-18 GROWLER BLOCK II SCS
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $53.1 million to THE BOEING COMPANY for work described as: IGF::OT::IGF F/A-18 GROWLER BLOCK II SCS Key points: 1. Significant contract value of $53.14M awarded to The Boeing Company. 2. Lack of competition raises questions about price discovery and potential overspending. 3. The contract is for aircraft manufacturing, a critical defense sector. 4. Potential risks associated with sole-source awards and limited oversight.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure, combined with a lack of competition, makes it difficult to benchmark pricing effectively against similar contracts. Without competitive bids, there's a higher risk of the government paying more than necessary.
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 mechanisms and potentially leads to higher costs for taxpayers as there is no competitive pressure to drive down prices.
Taxpayer Impact: The absence of competition on this $53.14M contract means taxpayers may have paid a premium, as the government did not benefit from the price reductions typically achieved through a competitive bidding process.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The sole-source nature of the award could indicate a lack of available alternatives or a strategic decision that warrants further scrutiny. The long duration of the contract (over 3 years) amplifies the potential financial impact of non-competitive pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Awarded to a major defense contractor with proven capabilities
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending benchmarks in this area are highly variable due to technological complexity and R&D costs. However, non-competitive awards in such a significant sector warrant close examination.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine if small business participation was considered or achieved.
Oversight & Accountability
The sole-source nature of this contract suggests that oversight should focus on the justification for non-competition and the rigorous monitoring of costs to ensure fair pricing and prevent potential waste, fraud, or abuse.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Cost-plus contract type can lead to cost overruns.
- Potential for reduced innovation due to lack of competition.
- Long contract duration increases financial risk.
- Limited visibility into specific cost drivers.
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 $53.1 million to THE BOEING COMPANY. IGF::OT::IGF F/A-18 GROWLER BLOCK II 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 $53.1 million.
What is the period of performance?
Start: 2019-02-21. End: 2023-06-13.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions explored?
The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically require detailed documentation demonstrating that only one source can meet the requirement, or that compelling urgency, national security, or specific technological needs necessitate a sole-source approach. Exploring alternatives is a standard part of procurement regulations to ensure the government obtains the best value.
How were costs validated and controlled under this Cost Plus Fixed Fee (CPFF) contract, given the lack of competition?
With a CPFF contract and no competition, cost validation relies heavily on robust government oversight, including detailed audits of contractor expenses and performance. The fixed fee component provides some incentive for efficiency, but the government must diligently monitor all allowable costs to prevent overruns and ensure the final price reflects reasonable expenditures for the delivered product.
What is the long-term strategic value and necessity of the F/A-18 Growler Block II SCS, and does it justify a sole-source procurement approach?
The long-term strategic value of the F/A-18 Growler Block II SCS is tied to its role in electronic warfare capabilities for the Navy. If this specific configuration or upgrade is unique to Boeing's platform and essential for current operational needs, it might justify a sole-source approach. However, continuous assessment is needed to ensure this remains the most effective and cost-efficient solution over time.
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: $77,500,707
Exercised Options: $77,500,707
Current Obligation: $53,140,994
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $33,949,751
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: 2019-02-21
Current End Date: 2023-06-13
Potential End Date: 2023-06-13 00:00:00
Last Modified: 2023-09-29
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