Navy Awards Boeing $18.4M for F/A-18/EA-18G Capability Development in FY25
Contract Overview
Contract Amount: $18,398,401 ($18.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-08-26
End Date: 2026-09-30
Contract Duration: 400 days
Daily Burn Rate: $46.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F/A-18 AND EA-18G FISCAL YEAR 2025 CAPABILITY DEVELOPMENT FOR SYSTEM CONFIGURATION SETS (SCS).
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $18.4 million to THE BOEING COMPANY for work described as: F/A-18 AND EA-18G FISCAL YEAR 2025 CAPABILITY DEVELOPMENT FOR SYSTEM CONFIGURATION SETS (SCS). Key points: 1. This contract focuses on enhancing the F/A-18 and EA-18G aircraft systems. 2. Boeing is the sole awardee, indicating a lack of broader competition for this specific development. 3. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 4. The engineering services sector is critical for maintaining and upgrading advanced military platforms.
Value Assessment
Rating: fair
The award amount of $18.4M for system configuration sets is a specific development task. Benchmarking is difficult without detailed scope, but the Cost Plus Fixed Fee structure warrants close monitoring for cost overruns compared to fixed-price development contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to the specialized nature of the required engineering services for existing platforms where Boeing holds unique knowledge. This limits price discovery and potentially increases costs compared to a competitive process.
Taxpayer Impact: Taxpayer funds are directed to a single contractor for specialized aircraft system development, with potential for higher costs due to the lack of competition.
Public Impact
Ensures continued modernization and capability of critical naval air assets. Supports advanced military technology development and national defense. Impacts readiness and effectiveness of fighter and electronic warfare aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Limited transparency on specific development scope.
Positive Signals
- Addresses critical capability development for key aircraft.
- Supports established defense contractor with relevant expertise.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense aerospace. Spending in this area is driven by the need to maintain and upgrade complex military platforms to meet evolving threats and technological advancements.
Small Business Impact
The awardee is a large business (Boeing). There is no indication of subcontracting opportunities for small businesses within this specific contract announcement, which is common for sole-source, specialized development efforts.
Oversight & Accountability
Oversight will be crucial given the sole-source nature and Cost Plus Fixed Fee contract type. The Department of the Navy must ensure rigorous monitoring of costs, performance, and adherence to the defined scope to protect taxpayer interests.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Potential for cost growth
- Limited public detail on scope
Tags
engineering-services, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.4 million to THE BOEING COMPANY. F/A-18 AND EA-18G FISCAL YEAR 2025 CAPABILITY DEVELOPMENT FOR SYSTEM CONFIGURATION SETS (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 $18.4 million.
What is the period of performance?
Start: 2025-08-26. End: 2026-09-30.
What is the specific technical scope of the 'System Configuration Sets' being developed, and how does it directly enhance F/A-18/EA-18G capabilities?
The specific technical scope of the System Configuration Sets (SCS) is not detailed in the award notice. However, SCS typically refers to the specific hardware, software, and integration required to modify or upgrade an aircraft's systems. For the F/A-18 and EA-18G, this could involve updates to avionics, electronic warfare suites, communication systems, or weapons integration, aimed at improving performance, survivability, or mission effectiveness against current and future threats.
What are the primary risks associated with a sole-source, Cost Plus Fixed Fee contract for advanced aerospace development?
The primary risks include potential cost overruns, as the contractor is reimbursed for actual costs plus a fixed fee, incentivizing higher spending. Lack of competition limits price discovery and may result in paying a premium. Furthermore, defining and controlling the scope can be challenging, potentially leading to contract modifications and increased costs. Ensuring adequate government oversight is critical to mitigate these risks.
How does this investment in capability development align with the Navy's long-term strategic goals for its carrier-based air wings?
This investment directly supports the Navy's strategic goal of maintaining a technologically superior and combat-ready air wing. By ensuring the F/A-18 and EA-18G platforms remain capable and relevant, the Navy can continue to project power and conduct complex missions. This development is crucial for countering evolving threats and ensuring the effectiveness of carrier-based operations in contested environments.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JAMES S 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: $77,051,629
Exercised Options: $77,051,629
Current Obligation: $18,398,401
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N6893623D0001
IDV Type: IDC
Timeline
Start Date: 2025-08-26
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-11-03
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