FAA's $20M Weather Enhancement Contract with Boeing Raises Questions on Competition and Value
Contract Overview
Contract Amount: $19,979,371 ($20.0M)
Contractor: Boeing Company, the
Awarding Agency: Department of Transportation
Start Date: 2006-06-07
End Date: 2013-09-10
Contract Duration: 2,652 days
Daily Burn Rate: $7.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: SWIM DOC WEATHER ENHANCEMENT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $20.0 million to BOEING COMPANY, THE for work described as: SWIM DOC WEATHER ENHANCEMENT Key points: 1. Contract awarded to Boeing for custom computer programming services. 2. Significant spending on a single, long-term contract. 3. Lack of competition raises concerns about price discovery and potential overspending. 4. The sector is IT services, specifically custom programming.
Value Assessment
Rating: questionable
The contract's total value of $19.98 million over seven years, with a cost-plus-fixed-fee structure, suggests potential for cost overruns. Benchmarking is difficult without specific deliverables, but the lack of competition implies pricing may not be optimized.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and competitive pressure, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely resulted in a higher price than if multiple vendors had vied for the contract, impacting taxpayer value.
Public Impact
Taxpayers may have paid more due to the absence of competitive bidding. The long duration of the contract limits flexibility for adopting newer technologies. Lack of transparency in the sole-source award process can erode public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- Lack of clear performance metrics (implied)
Positive Signals
- Specific need for weather enhancement technology
- Established relationship with a major aerospace/tech provider
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Government spending in this area is substantial, but competitive bidding is crucial for ensuring value and innovation.
Small Business Impact
The contract was awarded to a large business (Boeing) and did not include any small business set-asides or participation, representing a missed opportunity for small business engagement.
Oversight & Accountability
The sole-source nature of this award warrants closer scrutiny from oversight bodies to ensure the FAA received fair value and that the procurement process was justified.
Related Government Programs
- Custom Computer Programming Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration (7 years)
- No small business participation
- Potential for cost overruns
Tags
custom-computer-programming-services, department-of-transportation, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $20.0 million to BOEING COMPANY, THE. SWIM DOC WEATHER ENHANCEMENT
Who is the contractor on this award?
The obligated recipient is BOEING COMPANY, THE.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $20.0 million.
What is the period of performance?
Start: 2006-06-07. End: 2013-09-10.
What specific weather enhancement capabilities were developed or improved under this contract, and how were these capabilities measured against the fixed fee?
The provided data lacks specific details on the deliverables and performance metrics of the 'SWIM DOC WEATHER ENHANCEMENT' contract. A cost-plus-fixed-fee contract implies a defined scope, but without access to the contract's statement of work and performance reports, it's impossible to assess the value delivered relative to the $19.98 million spent. Further investigation into FAA documentation would be required to determine the specific capabilities and their effectiveness.
Given the sole-source award, what justification did the FAA provide for not competing this requirement, and were alternative solutions considered?
Sole-source awards typically require a strong justification, such as a unique capability possessed by only one vendor or an urgent need that precludes competition. The FAA would need to document why Boeing was the only viable option for the 'SWIM DOC WEATHER ENHANCEMENT' system. Without this justification, the award raises concerns about whether the government explored all potential sources and received the best possible pricing and innovation.
How does the per-unit cost or overall cost of this weather enhancement system compare to similar systems developed or procured by other government agencies or private sector entities?
Benchmarking the cost of this contract is challenging due to its sole-source nature and the lack of specific performance details. Without competitive bids, there's no direct comparison point. To assess value, one would need to compare the system's functionalities and outcomes against publicly available data on similar weather enhancement technologies, considering factors like scale, complexity, and technological sophistication. This comparison is difficult with the current data.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
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
Parent Company: THE Boeing Company (UEI: 009256819)
Address: 707 S GRADY WAY, RENTON, WA, 98057
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,500,000
Exercised Options: $21,910,080
Current Obligation: $19,979,371
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-06-07
Current End Date: 2013-09-10
Potential End Date: 2018-07-15 00:00:00
Last Modified: 2018-02-15
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