DoD Awards Boeing $5.6B for F/A-18E/F & EA-18G Modifications, Extending to 2026
Contract Overview
Contract Amount: $5,634,111 ($5.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-08-29
End Date: 2026-01-31
Contract Duration: 520 days
Daily Burn Rate: $10.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F/A-18E/F & EA-18G CHANGES (MODS)
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32221
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $5.6 million to THE BOEING COMPANY for work described as: F/A-18E/F & EA-18G CHANGES (MODS) Key points: 1. Significant contract value for critical aircraft modifications. 2. Sole-source award to Boeing raises competition concerns. 3. Potential for cost overruns with Cost Plus Fixed Fee structure. 4. Defense sector spending on advanced aircraft is substantial.
Value Assessment
Rating: questionable
The contract value of $5.63 billion is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential alternatives or previous similar contracts.
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 lack of competition limits price discovery and may result in higher costs for the government.
Taxpayer Impact: The absence of competition for a contract of this magnitude could lead to taxpayers bearing a higher cost than if multiple vendors had vied for the work.
Public Impact
Ensures continued readiness and modernization of key naval fighter and electronic attack aircraft. Supports advanced capabilities for the U.S. Navy's air wing. Potential impact on future defense procurement strategies if sole-source awards become more prevalent.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration increases exposure to potential cost increases.
Positive Signals
- Maintains critical defense capabilities.
- Supports a major defense contractor.
- Long-term planning for fleet modernization.
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing. Spending in this area is often characterized by high R&D costs, long production cycles, and significant government investment to maintain technological superiority.
Small Business Impact
This contract is awarded directly to a large prime contractor, The Boeing Company. There is no explicit indication of subcontracting opportunities for small businesses within the provided data, which is common for sole-source awards of this nature.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight will be crucial to manage costs and ensure performance given the sole-source and cost-plus nature of the award.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- CPFF contract type poses cost control challenges.
- Potential for scope creep over the contract duration.
- Dependence on a single contractor for critical upgrades.
Tags
aircraft-manufacturing, department-of-defense, fl, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.6 million to THE BOEING COMPANY. F/A-18E/F & EA-18G CHANGES (MODS)
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $5.6 million.
What is the period of performance?
Start: 2024-08-29. End: 2026-01-31.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The Department of Defense should have a documented justification. To ensure fair pricing, the agency may conduct should-cost analyses, benchmark against historical data, or negotiate profit margins rigorously, even without direct competition.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for these aircraft modifications?
The primary risk with CPFF is that the contractor is reimbursed for all allowable costs plus a fixed fee representing profit. This structure can incentivize the contractor to incur higher costs, as their profit margin remains constant regardless of the total cost. This necessitates strong government oversight to control cost growth and ensure efficiency.
How will the modifications impact the operational effectiveness and lifespan of the F/A-18E/F and EA-18G fleets?
These modifications are intended to enhance the operational effectiveness of the F/A-18E/F (Super Hornet) and EA-18G (Growler) aircraft by upgrading their systems, avionics, and potentially their weapons capabilities. This ensures the platforms remain relevant against evolving threats and extends their service life, thereby maximizing the return on investment for these critical assets.
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: N0001923R0009
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6211 AVIATION AVE, JACKSONVILLE, FL, 32221
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: $5,634,111
Exercised Options: $5,634,111
Current Obligation: $5,634,111
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001924D0105
IDV Type: IDC
Timeline
Start Date: 2024-08-29
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2025-12-03
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