DoD's $219M R&D Contract with Boeing Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $21,947,732 ($21.9M)

Contractor: Boeing Company, the

Awarding Agency: Department of Defense

Start Date: 2010-09-07

End Date: 2012-04-30

Contract Duration: 601 days

Daily Burn Rate: $36.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT BIOTECHNOLOGY)

Place of Performance

Location: CANOGA PARK, LOS ANGELES County, CALIFORNIA, 91304

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.9 million to BOEING COMPANY, THE for work described as: RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT BIOTECHNOLOGY) Key points: 1. Significant investment in physical, engineering, and life sciences R&D. 2. Boeing, a major defense contractor, secured this delivery order. 3. Full and open competition was cited, but specific details are limited. 4. The contract's value and effectiveness warrant further analysis.

Value Assessment

Rating: questionable

The contract value of $219,477,320 for R&D services is substantial. Benchmarking against similar R&D contracts for physical, engineering, and life sciences is crucial to determine if this represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders were considered. However, the specific award mechanism (delivery order) and the limited duration suggest a focused scope, and the price discovery impact needs further examination.

Taxpayer Impact: The effective use of taxpayer funds hinges on whether the competitive process yielded the best possible price and technical solution for this R&D effort.

Public Impact

Impacts advancements in physical, engineering, and life sciences. Potential for technological breakthroughs with defense applications. Boeing's role highlights the concentration of large defense R&D contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited transparency on specific R&D outcomes.
  • Potential for cost overruns in R&D projects.
  • Need to verify the effectiveness of competition for delivery orders.

Positive Signals

  • Investment in critical scientific and engineering fields.
  • Leverages expertise of a major aerospace and defense company.

Sector Analysis

This contract falls within the R&D sector, specifically focusing on physical, engineering, and life sciences excluding biotechnology. Spending in this area is vital for technological advancement and national security, with significant government investment annually.

Small Business Impact

The contract was awarded to Boeing, a large prime contractor, suggesting limited direct opportunities for small businesses as subcontractors on this specific delivery order. Further investigation into subcontracting plans would be necessary.

Oversight & Accountability

Oversight by the Department of the Navy is essential to ensure the R&D objectives are met efficiently and effectively. Regular reporting and performance reviews are key accountability mechanisms.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Lack of specific R&D outcome data.
  • Potential for cost creep in CPFF contracts.
  • Need for detailed competition analysis for delivery orders.
  • Limited visibility into small business subcontracting.

Tags

research-and-development-in-the-physical, department-of-defense, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.9 million to BOEING COMPANY, THE. RESEARCH AND DEVELOPMENT IN THE PHYSICAL, ENGINEERING, AND LIFE SCIENCES (EXCEPT BIOTECHNOLOGY)

Who is the contractor on this award?

The obligated recipient is BOEING COMPANY, THE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $21.9 million.

What is the period of performance?

Start: 2010-09-07. End: 2012-04-30.

What specific R&D advancements were achieved under this contract, and do they justify the $219 million investment?

The contract focused on Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). Without detailed project reports or outcome assessments, it's difficult to definitively state the specific advancements. Justification of the $219 million investment would require a thorough review of the technical deliverables, their novelty, and their potential impact on future technologies or operational capabilities.

How effectively did the 'full and open competition' process ensure competitive pricing for this delivery order, given it's a cost-plus-fixed-fee contract?

While 'full and open competition' suggests multiple bids were solicited, the Cost Plus Fixed Fee (CPFF) structure can present challenges in price discovery. The government pays allowable costs plus a fixed fee, which incentivizes cost control but doesn't guarantee the lowest possible price upfront. Effectiveness depends on robust cost monitoring and negotiation by the contracting agency.

What is the long-term strategic value of this R&D investment for the Department of Defense, beyond immediate project deliverables?

The long-term strategic value lies in fostering innovation and maintaining a technological edge. Investments in physical, engineering, and life sciences R&D can lead to breakthroughs in materials, energy, computing, and human performance, which are critical for future defense capabilities. Assessing this value requires tracking the transition of research findings into new systems and doctrines.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Boeing Company (UEI: 009256819)

Address: 8531 FALLBROOK AVE, WEST HILLS, CA, 91304

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: $26,102,086

Exercised Options: $26,102,086

Current Obligation: $21,947,732

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001409D0354

IDV Type: IDC

Timeline

Start Date: 2010-09-07

Current End Date: 2012-04-30

Potential End Date: 2012-04-30 00:00:00

Last Modified: 2018-10-17

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