Navy Awards Boeing $7.95M for 2026 CPS Configuration Sets Support
Contract Overview
Contract Amount: $7,949,654 ($7.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-12-22
End Date: 2028-09-30
Contract Duration: 1,013 days
Daily Burn Rate: $7.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FISCAL YEAR 2026 CAPABILITY PRODUCTION SYSTEM CONFIGURATION SETS SUPPORT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $7.9 million to THE BOEING COMPANY for work described as: FISCAL YEAR 2026 CAPABILITY PRODUCTION SYSTEM CONFIGURATION SETS SUPPORT Key points: 1. Significant contract awarded to a major defense contractor. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long-term support contract spanning over three years. 4. Engineering services sector, crucial for defense readiness.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed carefully. Benchmarking against similar engineering support contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this sole-source award means potential cost savings were not realized, impacting taxpayer value.
Public Impact
Ensures critical system configuration support for the Navy's capabilities. Supports advanced engineering services within the defense sector. Potential for cost overruns due to sole-source, cost-plus contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Supports critical defense capability
- Long-term contract provides stability
Sector Analysis
This contract falls under Engineering Services, a vital sector for defense readiness. Spending in this area is often high due to the complexity and specialized nature of defense systems.
Small Business Impact
This contract was awarded directly to The Boeing Company and does not indicate any subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets requirements. Accountability for cost control will be critical.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Lack of competitive bidding may lead to inflated prices.
- Sole-source award limits market competition and innovation.
- Long-term dependency on a single contractor.
Tags
engineering-services, department-of-defense, mo, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.9 million to THE BOEING COMPANY. FISCAL YEAR 2026 CAPABILITY PRODUCTION SYSTEM CONFIGURATION SETS 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 $7.9 million.
What is the period of performance?
Start: 2025-12-22. End: 2028-09-30.
What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's difficult to ascertain the precise reason, but it suggests a lack of readily available alternatives or a critical dependency on Boeing's specific expertise for the 2026 Capability Production System Configuration Sets.
How will the Department of the Navy ensure cost control and value for money given the Cost Plus Fixed Fee and sole-source nature of this contract?
The Navy will likely employ stringent oversight mechanisms, including detailed audits of Boeing's costs, performance metrics tracking, and regular reviews of the fixed fee. They may also establish target cost goals and incentive structures to encourage efficiency. However, the inherent risks of cost overruns in sole-source, cost-plus contracts remain a concern.
What is the long-term strategic implication of relying on a sole-source provider for critical system configuration support?
Long-term reliance on a sole-source provider can stifle innovation and competition within the defense industrial base. It may also create vendor lock-in, making it difficult and expensive to switch providers or adopt new technologies in the future. This can reduce overall system resilience and increase long-term costs for the government.
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: $47,385,861
Exercised Options: $47,385,861
Current Obligation: $7,949,654
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: 2028-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2025-12-22
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