Navy Awards $49.7M to Boeing for F/A-18/EA-18G FY26 Capability Development Support
Contract Overview
Contract Amount: $49,743,411 ($49.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-12-22
End Date: 2027-09-30
Contract Duration: 647 days
Daily Burn Rate: $76.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F/A-18 AND EA-18G FISCAL YEAR 2026 CAPABILITY DEVELOPMENT SYSTEM CONFIGURATION SETS (SCS) SUPPORT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $49.7 million to THE BOEING COMPANY for work described as: F/A-18 AND EA-18G FISCAL YEAR 2026 CAPABILITY DEVELOPMENT SYSTEM CONFIGURATION SETS (SCS) SUPPORT Key points: 1. Boeing, the sole manufacturer of these aircraft, is the only viable source for this specialized support. 2. The contract focuses on critical capability development for frontline Navy aircraft, ensuring continued operational effectiveness. 3. Risk is moderate, stemming from reliance on a single provider and the complexity of advanced aircraft systems. 4. The Engineering Services sector (NAICS 541330) is characterized by high technical expertise and long-term government contracts.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can lead to cost overruns if not managed carefully. The awarded amount of $49.7M for a 647-day duration appears reasonable given the specialized nature of the work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to Boeing's unique position as the original equipment manufacturer for the F/A-18 and EA-18G. This lack of competition limits price discovery and potentially increases costs for the government.
Taxpayer Impact: Taxpayer funds are being used for specialized engineering services on critical defense platforms, with limited opportunity for competitive pricing.
Public Impact
Ensures continued modernization and capability upgrades for essential Navy fighter and electronic warfare aircraft. Supports the operational readiness of the F/A-18 Super Hornet and EA-18G Growler fleets. Directly impacts the technological edge of naval aviation in future combat scenarios.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long-term reliance on a single contractor for critical systems.
Positive Signals
- Addresses critical capability development for key defense assets.
- Leverages specialized expertise of the original equipment manufacturer.
- Supports ongoing modernization of naval aviation platforms.
Sector Analysis
This contract falls within the Engineering Services sector, which supports the design, development, and testing of complex systems. Spending in this sector is often tied to defense procurement and R&D, with significant investment in specialized technical support.
Small Business Impact
This award does not appear to directly benefit small businesses, as it is a sole-source contract awarded to a large prime contractor. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and that the scope of work is strictly adhered to. Regular performance reviews and audits will be crucial for accountability.
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
- Reliance on OEM for critical support
- Potential for cost escalation
- Limited price discovery
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 $49.7 million to THE BOEING COMPANY. F/A-18 AND EA-18G FISCAL YEAR 2026 CAPABILITY DEVELOPMENT SYSTEM CONFIGURATION SETS (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 $49.7 million.
What is the period of performance?
Start: 2025-12-22. End: 2027-09-30.
What is the projected return on investment for this capability development, considering the sole-source nature of the contract?
Quantifying the ROI for capability development under a sole-source contract is challenging. The primary value lies in maintaining and enhancing the operational effectiveness of critical defense assets. Without competition, the government relies on contractor efficiency and robust oversight to ensure value for money, rather than market-driven price reductions.
What are the specific risks associated with relying solely on Boeing for this critical system configuration support?
The primary risks include potential cost overruns due to the CPFF structure and lack of competitive pressure, vendor lock-in limiting future flexibility, and potential delays if Boeing faces internal production or supply chain issues. There's also a risk that without external validation, the chosen configuration sets may not represent the most cost-effective or technologically advanced solutions available.
How will the effectiveness of this capability development be measured and validated, given the absence of competitive alternatives?
Effectiveness will be measured through rigorous testing, performance metrics defined in the contract, and operational feedback from end-users (Navy pilots and aircrews). Independent government assessments and milestone reviews will be crucial to validate that the developed capabilities meet the intended requirements and enhance aircraft performance as expected.
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: $118,426,376
Exercised Options: $118,426,376
Current Obligation: $49,743,411
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: 2025-12-22
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2025-12-23
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