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
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 Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (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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