DoD awards $301M for F-18 flight control surfaces to Boeing, raising concerns over competition
Contract Overview
Contract Amount: $301,171,783 ($301.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2016-08-01
End Date: 2022-11-30
Contract Duration: 2,312 days
Daily Burn Rate: $130.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 17 F18 A-D FLIGHT CONTROL SURFACE NIINS
Place of Performance
Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078
Plain-Language Summary
Department of Defense obligated $301.2 million to THE BOEING COMPANY for work described as: 17 F18 A-D FLIGHT CONTROL SURFACE NIINS Key points: 1. Significant contract value of $301M for critical aircraft components. 2. Sole reliance on Boeing for F-18 flight control surfaces limits market options. 3. Potential for inflated costs due to lack of competitive bidding. 4. Spending falls within the Defense sector, specifically aircraft parts manufacturing.
Value Assessment
Rating: questionable
The contract value of $301M for F-18 flight control surfaces appears high given the lack of competition. Benchmarking against similar sole-source contracts for specialized aircraft parts is difficult but suggests potential for overpayment without competitive pressure.
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 likely resulted in less favorable pricing for the government, as there was no market pressure to drive down costs.
Taxpayer Impact: Taxpayers may be overpaying for these critical flight control surfaces due to the absence of a competitive bidding process.
Public Impact
Ensures continued operational readiness for F-18 aircraft. Supports a major defense contractor and its supply chain. Raises questions about long-term sustainment costs for aging aircraft fleets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Ensures availability of critical parts
- Supports existing fleet readiness
Sector Analysis
This spending is within the aerospace and defense manufacturing sector, specifically for aircraft parts. Benchmarks for sole-source awards in this niche can be difficult to establish, but typically involve higher costs than competed contracts.
Small Business Impact
This contract was awarded to The Boeing Company, a large prime contractor. There is no indication that small businesses were involved in this specific award, either as subcontractors or direct awardees.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the pricing is fair and reasonable. The Defense Logistics Agency should have robust justification for not pursuing competitive options.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Sole-source dependency
- Limited transparency in pricing
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, pa, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $301.2 million to THE BOEING COMPANY. 17 F18 A-D FLIGHT CONTROL SURFACE NIINS
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 Logistics Agency).
What is the total obligated amount?
The obligated amount is $301.2 million.
What is the period of performance?
Start: 2016-08-01. End: 2022-11-30.
What is the justification for awarding this contract sole-source to Boeing, and were alternative sourcing strategies considered?
The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or the inability of other sources to meet the requirement. For critical aircraft components like flight control surfaces, there might be specific technical requirements or existing integration challenges that favor the original equipment manufacturer. However, the agency should have explored options for competitive prototyping or second-sourcing to mitigate cost and ensure long-term supply chain resilience.
How does the pricing of this sole-source contract compare to historical data or industry benchmarks for similar components, if available?
Without access to proprietary data or specific industry benchmarks for F-18 flight control surfaces, a direct price comparison is challenging. However, sole-source contracts are generally expected to be more expensive than competitively awarded ones. The Defense Contract Audit Agency (DCAA) or similar oversight bodies would typically scrutinize the cost proposals to ensure they are fair and reasonable, but the absence of competition inherently limits the government's leverage in price negotiations.
What is the long-term strategy for ensuring a competitive and cost-effective supply of these critical components beyond the current contract duration?
The long-term strategy should involve actively seeking opportunities to introduce competition. This could include market research to identify potential new suppliers, investing in technology transfer to enable other manufacturers, or developing standardized components that are less proprietary. The agency should also consider the total lifecycle cost, including sustainment and potential obsolescence, when planning for future procurements to avoid locking into high-cost, single-source arrangements.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
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: $304,742,188
Exercised Options: $304,742,188
Current Obligation: $301,171,783
Subaward Activity
Number of Subawards: 105
Total Subaward Amount: $51,234,635
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRPA114D002U
IDV Type: IDC
Timeline
Start Date: 2016-08-01
Current End Date: 2022-11-30
Potential End Date: 2022-11-30 00:00:00
Last Modified: 2025-11-14
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