Boeing Awarded $68.7M for Advanced Technology Development by DoD
Contract Overview
Contract Amount: $68,731,863 ($68.7M)
Contractor: Boeing Company, the
Awarding Agency: Department of Defense
Start Date: 2001-11-02
End Date: 2007-05-28
Contract Duration: 2,033 days
Daily Burn Rate: $33.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST NO FEE
Sector: R&D
Official Description: 200202!000027!5700!GS03 !DET 8, AFRL/PK (SUPPORTS DE) !F2960100D0204 !A!N! !N!0022 !20011102!20020930!785674987!785674987!009256819!N!THE BOEING COMPANY !535 LIPOA PKWY STE 200 !KIHEI !HI!96753!36500!009!15!KIHEI !MAUI !HAWAII !+000000450000!N!N!000000000000!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !5!B!S! ! ! !99990909!B! ! !A! !A!U!S!2!003!B! !Z!N!Z! ! !N!C!N! ! ! !A!C!A!A!000!A!C!N! ! ! ! ! ! !0001!
Place of Performance
Location: KIHEI, MAUI County, HAWAII, 96753
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $68.7 million to BOEING COMPANY, THE for work described as: 200202!000027!5700!GS03 !DET 8, AFRL/PK (SUPPORTS DE) !F2960100D0204 !A!N! !N!0022 !20011102!20020930!785674987!785674987!009256819!N!THE BOEING COMPANY !535 LIPOA PKWY STE 200 !KIHEI !HI!96753!36500!009!15!KIHEI !MAUI … Key points: 1. The contract focuses on Research and Development in Physical, Engineering, and Life Sciences. 2. Awarded by the Department of Defense through the Defense Contract Management Agency. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration is over 2000 days, indicating a long-term project.
Value Assessment
Rating: fair
The contract value is $68.7 million. Without specific unit costs or detailed deliverables, a precise pricing assessment is difficult. However, the 'COST NO FEE' contract type suggests the government is reimbursing Boeing for allowable costs plus a negotiated fee, which can sometimes lead to higher overall costs if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and can lead to more competitive pricing compared to sole-source or limited competition scenarios.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best value and price through market forces.
Public Impact
Supports the Department of Defense's advanced technology development efforts. The contract involves research and development in electronics and communication. Long-term duration suggests a significant and ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fee contract type can lead to cost overruns if not managed effectively.
- Lack of specific performance metrics makes it difficult to assess value for money.
- Long contract duration increases the risk of scope creep or changing technological needs.
Positive Signals
- Awarded through full and open competition, indicating potential for competitive pricing.
- Supports critical defense research and development.
- The contractor, Boeing, is a major aerospace and defense company with extensive experience.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on advanced technology development in electronics and communication for defense applications. Spending in this sector is crucial for maintaining technological superiority but can be subject to long development cycles and evolving requirements.
Small Business Impact
The data indicates the prime contractor is The Boeing Company, a large business. There is no explicit information regarding subcontracting to small businesses within this data snippet.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for overseeing contract performance and ensuring compliance. The 'COST NO FEE' type requires diligent oversight to ensure costs are allowable and reasonable.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost overruns due to 'COST NO FEE' structure.
- Technological obsolescence over the long contract duration.
- Difficulty in measuring R&D success and value for money.
- Potential for scope creep in advanced technology development.
Tags
research-and-development-in-the-physical, department-of-defense, hi, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.7 million to BOEING COMPANY, THE. 200202!000027!5700!GS03 !DET 8, AFRL/PK (SUPPORTS DE) !F2960100D0204 !A!N! !N!0022 !20011102!20020930!785674987!785674987!009256819!N!THE BOEING COMPANY !535 LIPOA PKWY STE 200 !KIHEI !HI!96753!36500!009!15!KIHEI !MAUI !HAWAII !+000000450000!N!N!000000000000!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !5!B!S! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is BOEING COMPANY, THE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $68.7 million.
What is the period of performance?
Start: 2001-11-02. End: 2007-05-28.
What specific advanced technologies are being developed under this contract, and how do they align with current and future defense needs?
The contract specifies 'ELECTRONICS AND COMMUNICATION' as the area of R&D. While the exact technologies are not detailed, they likely pertain to advanced communication systems, electronic warfare capabilities, or sensor technologies crucial for modern defense operations. Alignment with future needs would depend on the strategic foresight of the Air Force Research Laboratory (AFRL) in anticipating technological advancements and threats.
Given the 'COST NO FEE' contract type, what mechanisms are in place to control costs and ensure the government receives good value for its investment?
The 'COST NO FEE' structure means the government reimburses allowable costs plus a fixed fee. Effective cost control relies heavily on robust DCMA oversight, detailed cost reporting from Boeing, and clear contractual limitations on allowable expenses. Regular audits and performance reviews are essential to ensure the fee is earned and costs are reasonable and allocable to the contract.
How will the success or failure of this R&D project be measured, and what are the potential impacts if the developed technologies do not meet expectations?
Success metrics for R&D contracts are often tied to achieving specific technical milestones, demonstrating proof-of-concept, or developing prototypes. Failure could mean the technologies are not mature enough, do not perform as expected, or become obsolete before deployment. The impact could range from wasted investment to a gap in critical defense capabilities, necessitating alternative solutions or further R&D.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 3
Pricing Type: COST NO FEE (S)
Contractor Details
Parent Company: THE Boeing Company (UEI: 009256819)
Address: 535 LIPOA PARKWAY, KIHEI, HI, 02
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F2960100D0204
IDV Type: IDC
Timeline
Start Date: 2001-11-02
Current End Date: 2007-05-28
Potential End Date: 2007-05-28 00:00:00
Last Modified: 2011-06-27
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