Boeing Awarded $39.6M for Little Mountain Test Facility O&M, No Competition
Contract Overview
Contract Amount: $39,623,802 ($39.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2012-06-20
End Date: 2017-09-20
Contract Duration: 1,918 days
Daily Burn Rate: $20.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: OPERATION AND MAINTENANCE OF THE LITTLE MOUNTAIN TEST FACILITY
Place of Performance
Location: OGDEN, WEBER County, UTAH, 84404
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $39.6 million to THE BOEING COMPANY for work described as: OPERATION AND MAINTENANCE OF THE LITTLE MOUNTAIN TEST FACILITY Key points: 1. Significant contract value for specialized engineering services. 2. Sole-source award raises questions about price discovery. 3. Long-term contract duration (5 years) warrants close monitoring. 4. Facility operations are critical for defense testing.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to benchmark pricing against similar services.
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 potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these essential engineering services.
Public Impact
Ensures continued operation of a critical national defense test facility. Supports specialized engineering expertise vital for military readiness. Potential for taxpayer funds to be used inefficiently due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
Positive Signals
- Maintains critical infrastructure
- Supports national defense objectives
Sector Analysis
Engineering services for test facilities are crucial for defense sector operations. Spending benchmarks are difficult to establish without competitive data, but this represents a significant investment in a single facility's upkeep.
Small Business Impact
The data indicates no small business participation in this contract. Further analysis would be needed to determine if opportunities were missed or if the nature of the work precluded small business involvement.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of the Air Force to ensure costs are reasonable and performance meets requirements. Tracking expenditures against the fixed fee is crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost-plus contract type increases risk of cost overruns.
- Long duration limits flexibility and potential for future cost savings.
- No indication of small business participation.
Tags
engineering-services, department-of-defense, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.6 million to THE BOEING COMPANY. OPERATION AND MAINTENANCE OF THE LITTLE MOUNTAIN TEST FACILITY
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 Air Force).
What is the total obligated amount?
The obligated amount is $39.6 million.
What is the period of performance?
Start: 2012-06-20. End: 2017-09-20.
What was the justification for awarding this contract on a sole-source basis?
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 presumed the Air Force determined Boeing was the only viable option for operating the Little Mountain Test Facility, possibly due to specialized knowledge or existing infrastructure integration.
How can the government ensure cost-effectiveness with a Cost Plus Fixed Fee contract awarded without competition?
Ensuring cost-effectiveness requires stringent oversight, detailed cost tracking, and performance monitoring. The Air Force must validate all incurred costs against the contract's scope and ensure the fixed fee remains appropriate. Regular audits and performance reviews are essential to prevent overspending and ensure value for taxpayer money, despite the lack of competitive pressure.
What is the long-term strategic value of maintaining the Little Mountain Test Facility under this contract structure?
The long-term strategic value lies in maintaining a unique national asset for defense testing and development. The facility likely supports critical, specialized testing capabilities that are essential for advancing military technology and ensuring readiness. The current contract structure, while potentially costly, ensures continuity of these vital operations and preserves specialized expertise.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 888 SOUTH 2000 EAST, CLEARFIELD, UT, 84015
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: $75,524,511
Exercised Options: $75,524,511
Current Obligation: $39,623,802
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA820412D7001
IDV Type: IDC
Timeline
Start Date: 2012-06-20
Current End Date: 2017-09-20
Potential End Date: 2017-09-20 00:00:00
Last Modified: 2017-06-14
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