Boeing Awarded $353.7M for P-8A Combat Systems Integration, Facing Limited Competition
Contract Overview
Contract Amount: $353,694,495 ($353.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-03-19
End Date: 2026-06-30
Contract Duration: 2,660 days
Daily Burn Rate: $133.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: P-8A INC 3 BLOCK 2 COMBAT SYSTEMS ARCHITECTURE HARDWARE AND SOFTWARE PLATFORM INTEGRATION DEVELOPMENT EFFORT TO IMPLEMENT ENGINEERING CHANGE PROPOSALS (ECPS) 6 AND 7.
Place of Performance
Location: TUKWILA, KING County, WASHINGTON, 98108
Plain-Language Summary
Department of Defense obligated $353.7 million to THE BOEING COMPANY for work described as: P-8A INC 3 BLOCK 2 COMBAT SYSTEMS ARCHITECTURE HARDWARE AND SOFTWARE PLATFORM INTEGRATION DEVELOPMENT EFFORT TO IMPLEMENT ENGINEERING CHANGE PROPOSALS (ECPS) 6 AND 7. Key points: 1. Significant contract value for complex aircraft system integration. 2. Sole-source award to Boeing raises competition concerns. 3. Long-term contract duration (2026) suggests ongoing development needs. 4. Focus on engineering changes indicates evolving platform requirements.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure allows for flexibility but can lead to cost overruns if not managed tightly. Benchmarking against similar complex integration efforts is difficult without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: The lack of competition may result in a higher overall cost to the government compared to a fully competed procurement.
Public Impact
Enhances the combat capabilities of the P-8A Poseidon maritime patrol aircraft. Supports critical defense infrastructure and national security objectives. Impacts the long-term sustainment and modernization of a key military asset.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Supports critical defense platform
- Addresses specific engineering needs
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing. Spending benchmarks for complex system integration on major defense platforms are typically in the hundreds of millions, aligning with this award.
Small Business Impact
The contract was awarded directly to a large prime contractor, The Boeing Company. There is no explicit information provided regarding subcontracting opportunities for small businesses on this specific effort.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. The cost-plus-fixed-fee nature necessitates close monitoring of costs and performance to ensure accountability.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type carries inherent cost overrun risk.
- Long contract duration may not reflect current market efficiencies.
- Lack of transparency on ECP necessity and alternatives.
- Potential for scope creep given the nature of integration efforts.
Tags
aircraft-manufacturing, department-of-defense, wa, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $353.7 million to THE BOEING COMPANY. P-8A INC 3 BLOCK 2 COMBAT SYSTEMS ARCHITECTURE HARDWARE AND SOFTWARE PLATFORM INTEGRATION DEVELOPMENT EFFORT TO IMPLEMENT ENGINEERING CHANGE PROPOSALS (ECPS) 6 AND 7.
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $353.7 million.
What is the period of performance?
Start: 2019-03-19. End: 2026-06-30.
What is the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's difficult to ascertain the precise reasons. However, the complexity of integrating specific engineering change proposals into an existing advanced platform like the P-8A might necessitate specialized knowledge held by the original manufacturer.
How will the cost-plus-fixed-fee structure be managed to mitigate potential cost overruns?
Effective management of a cost-plus-fixed-fee contract relies on robust oversight, detailed cost tracking, and clear performance metrics. The government must diligently audit incurred costs, ensure alignment with the contract's scope, and negotiate fee adjustments based on performance. Regular reviews and communication with the contractor are crucial to identify and address potential cost escalations early.
What is the long-term strategy for the P-8A combat systems, and how does this contract fit into it?
This contract addresses specific engineering changes (ECPs 6 and 7) for the P-8A's combat systems, indicating an ongoing effort to modernize and enhance its capabilities. The long duration suggests these updates are part of a broader, multi-year strategy to maintain the platform's effectiveness against evolving threats. Future contracts will likely focus on further integration, testing, and potential upgrades.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D 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: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134
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: $358,194,495
Exercised Options: $358,194,495
Current Obligation: $353,694,495
Subaward Activity
Number of Subawards: 53
Total Subaward Amount: $53,043,624
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001916G0001
IDV Type: BOA
Timeline
Start Date: 2019-03-19
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-10-21
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