Boeing's $33.4M contract for Maui Space Surveillance System shows R&D focus in physical sciences
Contract Overview
Contract Amount: $33,407,129 ($33.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2016-05-03
End Date: 2025-09-10
Contract Duration: 3,417 days
Daily Burn Rate: $9.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF RASTER - MAUI SPACE SURVEILLANCE SYSTEM (MSSS)
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87109
Plain-Language Summary
Department of Defense obligated $33.4 million to THE BOEING COMPANY for work described as: IGF::OT::IGF RASTER - MAUI SPACE SURVEILLANCE SYSTEM (MSSS) Key points: 1. Contract awarded to a single, large incumbent contractor suggests potential for limited competition. 2. The contract's duration of over 9 years indicates a long-term need for specialized R&D services. 3. Cost-plus-fixed-fee contract type may incentivize cost overruns if not closely monitored. 4. The specific NAICS code points to a niche R&D sector with high barriers to entry. 5. Geographic location in New Mexico may have implications for local workforce and economic impact. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.
Value Assessment
Rating: fair
Benchmarking the value of this R&D contract is challenging due to its specialized nature and long duration. The cost-plus-fixed-fee structure requires careful oversight to ensure value for money. Without comparable contracts for similar space surveillance systems, it's difficult to definitively assess pricing fairness. However, the total award amount over nearly a decade suggests a significant investment in advanced research capabilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were theoretically allowed to compete. However, the award to a single, established contractor like The Boeing Company for a specialized system like the Maui Space Surveillance System might suggest that only a few entities possessed the requisite expertise and security clearances to bid effectively.
Taxpayer Impact: Full and open competition, even with a single awardee, generally benefits taxpayers by establishing a baseline price and encouraging potential future competition. It ensures that the government explored the market for the best possible solution and price.
Public Impact
The primary beneficiaries are the Department of Defense and the intelligence community, who will receive enhanced space surveillance capabilities. The contract supports the development and maintenance of advanced technologies for monitoring objects in space. The geographic impact is concentrated in New Mexico, potentially creating or sustaining high-skilled jobs in the region. The project likely involves a highly specialized workforce of scientists, engineers, and technicians.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can lead to higher costs if not managed diligently.
- Long contract durations may reduce flexibility to adapt to evolving technological needs.
- The specialized nature of the R&D may limit the pool of potential future contractors.
- Reliance on a single contractor for critical systems could pose a risk if performance issues arise.
Positive Signals
- Awarded through full and open competition, suggesting a thorough market assessment.
- The contract supports a critical national security function (space surveillance).
- The long duration allows for sustained development and integration of complex technologies.
- The contractor, Boeing, is a well-established entity with significant experience in aerospace and defense.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for advanced space surveillance systems is highly specialized, dominated by a few large defense contractors with extensive R&D capabilities and security clearances. Spending in this niche is driven by national security imperatives and technological advancements in space-based assets and counter-space capabilities.
Small Business Impact
The contract data indicates no specific small business set-aside. Given the specialized nature of R&D in advanced space surveillance, it is possible that large prime contractors like Boeing are expected to subcontract with small businesses for specific components or services. However, without explicit set-aside goals, the direct impact on the small business ecosystem may be limited unless actively pursued through subcontracting.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency is generally maintained through contract reporting mechanisms, though specific technical details of R&D projects are often classified.
Related Government Programs
- Space-Based Infrared System (SBIRS)
- Missile Defense Agency (MDA) Research Programs
- National Reconnaissance Office (NRO) Satellite Development
- Advanced Technology Development Programs (DARPA)
Risk Flags
- Long contract duration may indicate a lack of agile acquisition or evolving requirements.
- Cost-plus-fixed-fee contract type can lead to cost overruns if not managed stringently.
- Sole awardee in a full and open competition could suggest limited market capacity or high barriers to entry.
Tags
department-of-defense, air-force, research-and-development, space-surveillance, cost-plus-fixed-fee, full-and-open-competition, the-boeing-company, new-mexico, large-contract, long-duration, physical-sciences, system-development
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.4 million to THE BOEING COMPANY. IGF::OT::IGF RASTER - MAUI SPACE SURVEILLANCE SYSTEM (MSSS)
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 $33.4 million.
What is the period of performance?
Start: 2016-05-03. End: 2025-09-10.
What is the historical spending trend for the Maui Space Surveillance System (MSSS) prior to this award?
Detailed historical spending data specifically for the Maui Space Surveillance System (MSSS) prior to the May 3, 2016 award is not readily available in the provided data. However, the nature of such a system suggests a continuous need for research, development, and sustainment, likely involving multiple contracts over time. The current contract's duration (ending September 10, 2025) and value ($33.4 million) indicate a significant, long-term investment. To understand historical trends, one would need to access historical contract databases (like FPDS or SAM.gov) for the specific system name and relevant agencies (Department of Defense, Air Force) over previous fiscal years. This would reveal patterns in contract types, award values, and contractor performance, providing context for the current award's scale and scope.
How does the cost-plus-fixed-fee (CPFF) contract type compare to other R&D contract types in terms of risk and value for the government?
The Cost-Plus-Fixed-Fee (CPFF) contract type is common in R&D where the scope of work is not precisely defined at the outset, allowing for flexibility as research progresses. For the government, CPFF offers flexibility but carries a higher risk of cost overruns compared to fixed-price contracts, as the contractor is reimbursed for all allowable costs plus a fixed fee. The fixed fee provides the contractor with an incentive to control costs, but the primary incentive is profit, not necessarily cost minimization. Compared to other R&D contract types like Cost-Plus-Incentive-Fee (CPIF), which offers stronger cost control incentives, or Firm-Fixed-Price (FFP) contracts (less common for exploratory R&D), CPFF strikes a balance. It ensures the government can pursue innovative research without being overly constrained by a rigid price, while the fixed fee provides some level of cost predictability for the contractor's profit margin.
What are the key performance indicators (KPIs) typically used to evaluate the success of space surveillance R&D contracts?
Evaluating the success of space surveillance R&D contracts involves a multi-faceted approach focusing on technical performance, schedule adherence, and cost management. Key Performance Indicators (KPIs) often include metrics related to the system's detection and tracking capabilities, such as accuracy, range, and revisit rates for space objects. Technical KPIs might also encompass the reliability and maintainability of developed technologies, the successful integration of new components, and the achievement of specific research objectives outlined in the contract. Schedule adherence is critical, measured by milestones met and overall project completion time. Cost performance is monitored through variance analysis against the estimated cost and the final fee earned. Furthermore, successful knowledge transfer, documentation quality, and the system's ability to meet evolving operational requirements are crucial indicators of long-term value and effectiveness.
What is The Boeing Company's track record with similar Department of Defense R&D contracts, particularly in space systems?
The Boeing Company has an extensive and well-established track record with the Department of Defense (DoD) and other government agencies, particularly in complex aerospace and defense systems, including space-related technologies. They are a prime contractor on numerous large-scale programs involving satellite development, launch services, and advanced defense platforms. Their experience spans decades and covers a wide range of R&D efforts, from conceptual design and prototyping to full-scale system integration and sustainment. For space surveillance specifically, Boeing has been involved in various projects contributing to the nation's space domain awareness capabilities. While specific performance metrics for individual contracts are often proprietary, Boeing's consistent selection as a prime contractor for critical DoD R&D initiatives underscores their perceived capability, technical expertise, and capacity to manage large, complex, and sensitive programs within the defense sector.
Are there any known risks associated with the Maui Space Surveillance System (MSSS) technology or its operational environment?
The Maui Space Surveillance System (MSSS) operates in a technologically advanced and dynamic environment, presenting inherent risks. Technologically, the primary risks revolve around the rapid evolution of space-based threats and the need for continuous system upgrades to maintain relevance. This includes the challenge of tracking increasingly smaller or stealthier objects, as well as countering potential adversary advancements in space. Operationally, risks can stem from environmental factors affecting sensor performance (e.g., atmospheric conditions), cybersecurity threats targeting sensitive data, and the potential for system obsolescence if R&D efforts do not keep pace with technological advancements. Furthermore, reliance on specialized hardware and software introduces risks related to supply chain disruptions or the availability of skilled personnel to maintain and operate the system effectively over its lifecycle.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA945113R0243
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4411 THE 25 WAY, SUITE 350, ALBUQUERQUE, NM, 87109
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: $34,649,403
Exercised Options: $34,649,403
Current Obligation: $33,407,129
Subaward Activity
Number of Subawards: 55
Total Subaward Amount: $7,070,645
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA945116D0001
IDV Type: IDC
Timeline
Start Date: 2016-05-03
Current End Date: 2025-09-10
Potential End Date: 2025-09-10 00:00:00
Last Modified: 2025-09-09
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