DoD Awards Boeing $28.3M for F/A-18 Modifications, Raising Concerns Over Competition
Contract Overview
Contract Amount: $28,286,423 ($28.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2015-09-25
End Date: 2023-09-30
Contract Duration: 2,927 days
Daily Burn Rate: $9.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: F/A-18 A-D AND E/F MODIFICATIONS
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32221
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $28.3 million to THE BOEING COMPANY for work described as: F/A-18 A-D AND E/F MODIFICATIONS Key points: 1. Significant contract value awarded to a single large contractor. 2. Lack of competition raises questions about price discovery and potential overspending. 3. Contract duration extends over several years, indicating long-term reliance. 4. Focus on aircraft modifications suggests ongoing sustainment and upgrade needs within the defense sector.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a lack of competition, makes it difficult to benchmark pricing effectively against similar contracts. Without competitive bids, it's challenging to ascertain if the $28.3 million represents a fair market price.
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 limits price discovery and may lead to higher costs for taxpayers as there is no market pressure to offer the best value.
Taxpayer Impact: The absence of competition for these modifications could result in taxpayers paying a premium for aircraft sustainment and upgrades.
Public Impact
Taxpayers may be overpaying for F/A-18 aircraft modifications due to a lack of competitive bidding. The long duration of the contract (over 8 years) means sustained potential for inflated costs. Dependence on a single contractor for critical aircraft upgrades could pose a long-term risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Supports critical defense capabilities
- Addresses necessary aircraft modifications
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending on aircraft modifications is typical for maintaining aging fleets and incorporating new technologies. Benchmarks for such modifications vary widely based on complexity and aircraft type.
Small Business Impact
This contract was awarded to The Boeing Company, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting limited small business participation.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. However, the lack of competition and cost-plus structure may limit the effectiveness of oversight in ensuring optimal value for taxpayer dollars.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
- Limited transparency in pricing
- Long contract duration
Tags
aircraft-manufacturing, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.3 million to THE BOEING COMPANY. F/A-18 A-D AND E/F MODIFICATIONS
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 $28.3 million.
What is the period of performance?
Start: 2015-09-25. End: 2023-09-30.
What is the specific breakdown of costs within this Cost Plus Fixed Fee contract, and how does the fixed fee component compare to industry standards for similar modification work?
A detailed breakdown of costs is not provided in the available data. Cost-plus-fixed-fee contracts typically include direct costs, indirect costs, and a predetermined fixed fee. To assess value, one would need to analyze the direct and indirect cost components against industry benchmarks for F/A-18 modifications and evaluate if the fixed fee is reasonable given the scope and risk.
What justification was provided for not competing this contract, and what steps are being taken to ensure fair pricing despite the sole-source nature of the award?
The justification for not competing this contract is not detailed in the provided data. Typically, sole-source awards require specific justifications, such as unique capabilities or urgent needs. To ensure fair pricing, the agency should conduct thorough price analyses, potentially using historical data or independent cost estimates, and negotiate aggressively with the contractor.
How will the effectiveness of these F/A-18 modifications be measured, and what performance metrics are in place to ensure they meet the intended operational requirements?
The effectiveness of the modifications will likely be measured through a combination of technical performance reviews, operational testing, and feedback from end-users (e.g., pilots and maintenance crews). Specific performance metrics should be defined in the contract, focusing on aspects like improved reliability, enhanced capabilities, reduced maintenance downtime, or increased operational range.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,286,423
Exercised Options: $28,286,423
Current Obligation: $28,286,423
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $20,751,313
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001914D0001
IDV Type: IDC
Timeline
Start Date: 2015-09-25
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2023-08-16
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