DOT's $27.7M R&D contract with Boeing for physical sciences research shows fair value with 3 bidders
Contract Overview
Contract Amount: $27,726,516 ($27.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Transportation
Start Date: 2010-07-01
End Date: 2015-12-17
Contract Duration: 1,995 days
Daily Burn Rate: $13.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST SHARING
Sector: R&D
Official Description: BOEING CLEEN OTHER TRANSACTION AGREEMENT TAS::69 8108::TAS
Place of Performance
Location: TUKWILA, KING County, WASHINGTON, 98108
Plain-Language Summary
Department of Transportation obligated $27.7 million to THE BOEING COMPANY for work described as: BOEING CLEEN OTHER TRANSACTION AGREEMENT TAS::69 8108::TAS Key points: 1. Contract awarded to a large, established aerospace firm for specialized research and development. 2. Competition level indicates a moderate level of market interest for this type of R&D. 3. Contract type is cost-sharing, suggesting shared risk and investment between government and contractor. 4. Performance period spans over five years, allowing for in-depth research and development. 5. Sector positioning within R&D for physical sciences highlights investment in foundational research.
Value Assessment
Rating: good
The contract's value of approximately $27.7 million over five years for R&D in physical sciences appears reasonable given the nature of the work and the contractor's expertise. While direct comparisons are difficult without specific project details, the cost-sharing arrangement suggests a commitment from Boeing, potentially indicating a belief in the project's value. Benchmarking R&D contracts is inherently complex due to the unique nature of each project, but the duration and scope suggest a significant undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with three bidders participating. The presence of multiple bidders suggests that the market for this type of specialized R&D is competitive, which generally benefits price discovery and can lead to more favorable terms for the government. The number of bidders, while not exceptionally high, indicates that the opportunity was accessible to qualified entities.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer funds are used efficiently by driving down costs and encouraging innovation among potential contractors.
Public Impact
The primary beneficiary is the Department of Transportation, which gains insights and potential technological advancements in physical sciences relevant to its mission. Services delivered include advanced research and development activities, contributing to the body of scientific knowledge. The geographic impact is likely concentrated around Boeing's research facilities, but the knowledge gained can have broader national implications. Workforce implications include the employment of highly skilled researchers, engineers, and scientists within Boeing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term R&D projects.
- The specific outcomes and applicability of the research may not be fully realized within the contract period.
Positive Signals
- Cost-sharing arrangement aligns contractor and government interests.
- Award to a reputable contractor with a track record in aerospace and R&D.
- Full and open competition suggests a robust selection process.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for innovation and technological advancement across various industries, including transportation. The market for such specialized R&D is often characterized by a few highly capable firms, and government investment plays a significant role in driving progress in foundational scientific areas.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. As a large contract awarded to a major aerospace corporation, the direct impact on the small business ecosystem is likely minimal, though Boeing may engage small businesses as part of its supply chain for materials or specialized services.
Oversight & Accountability
Oversight for this contract would typically be managed by the Federal Aviation Administration (FAA) within the Department of Transportation. Accountability measures would be tied to the research milestones and deliverables outlined in the contract. Transparency is generally maintained through contract award databases and reporting requirements, though the specifics of R&D can be proprietary.
Related Government Programs
- Federal Aviation Administration Research Programs
- Department of Transportation Science and Technology Initiatives
- Aerospace Research and Development Contracts
Risk Flags
- Long-term R&D projects carry inherent uncertainty in outcomes.
- Cost-sharing requires careful monitoring to ensure fair allocation of expenses.
Tags
research-and-development, department-of-transportation, federal-aviation-administration, definitive-contract, cost-sharing, full-and-open-competition, large-business, physical-sciences, aerospace, washington
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $27.7 million to THE BOEING COMPANY. BOEING CLEEN OTHER TRANSACTION AGREEMENT TAS::69 8108::TAS
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $27.7 million.
What is the period of performance?
Start: 2010-07-01. End: 2015-12-17.
What is Boeing's track record with similar government R&D contracts?
Boeing has a long and extensive history of engaging in research and development contracts with various U.S. government agencies, including the Department of Defense and NASA, as well as the Department of Transportation. Their track record includes significant contributions to aerospace technology, materials science, and engineering innovations. While specific performance metrics for past R&D contracts are often not publicly detailed, Boeing's sustained presence as a prime contractor for complex government projects suggests a generally reliable performance history. However, like any large contractor, they have faced scrutiny and challenges on specific programs, underscoring the importance of ongoing oversight for all government contracts.
How does the value of this contract compare to other R&D efforts in physical sciences?
Benchmarking the value of this $27.7 million contract against other R&D efforts in physical sciences is challenging due to the highly specialized and often unique nature of such research. R&D contracts can vary significantly in scope, duration, and objectives. However, for a multi-year project involving a major aerospace contractor like Boeing, this funding level appears within a reasonable range for significant scientific inquiry. Government investment in R&D is crucial for advancing foundational knowledge, and contracts of this magnitude are typical for projects aiming for substantial technological breakthroughs or in-depth scientific exploration.
What are the primary risks associated with this type of cost-sharing R&D contract?
The primary risks associated with this cost-sharing R&D contract include potential cost overruns, where the actual research expenses exceed the initially estimated budget, even with shared costs. There's also the risk that the research may not yield the desired or expected outcomes within the contract's timeframe or budget, leading to a less than optimal return on investment for the government. Furthermore, managing intellectual property rights and ensuring the effective transfer of knowledge and technology can present challenges. The success of R&D is inherently uncertain, making it a higher-risk endeavor compared to procurement of established goods or services.
How effective is the cost-sharing model in ensuring value for money in R&D?
The cost-sharing model is generally considered an effective mechanism for ensuring value for money in R&D contracts. By requiring the contractor to bear a portion of the research costs, it aligns the contractor's financial interests with the government's objective of achieving successful and cost-efficient outcomes. This shared investment incentivizes the contractor to manage resources diligently, seek innovative solutions, and prioritize research areas with the highest potential for success. It also serves as a form of contractor commitment and confidence in the project's viability, potentially mitigating risks associated with government-funded research.
What is the historical spending trend for R&D contracts by the Department of Transportation?
The Department of Transportation (DOT) historically allocates a portion of its budget to research and development to foster innovation in transportation safety, efficiency, and sustainability. While specific figures fluctuate annually based on strategic priorities and available funding, DOT consistently invests in R&D across various modes of transportation, including aviation, highways, and rail. Spending in R&D, particularly in areas like physical sciences and engineering, supports the development of new technologies, materials, and analytical methods that can enhance the national transportation infrastructure. Analyzing historical spending patterns reveals a commitment to leveraging scientific advancements to address evolving transportation challenges.
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 › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST SHARING (T)
Evaluated Preference: NONE
Contractor Details
Address: 7755 E MARGINAL WAY S, SEATTLE, WA, 98108
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: $40,047,625
Exercised Options: $27,726,516
Current Obligation: $27,726,516
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2010-07-01
Current End Date: 2015-12-17
Potential End Date: 2015-12-17 00:00:00
Last Modified: 2022-04-12
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