DoD awards Boeing $20.1M for Missile and Space Systems R&D, raising questions on value

Contract Overview

Contract Amount: $20,107,911 ($20.1M)

Contractor: Boeing Aerospace Operations, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-06-20

End Date: 2008-12-31

Contract Duration: 2,386 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200209!000186!5700!CZ24 !SMC/PKU KIRTLAND AFB !F0470102C0200 !A!N! !Y! !20020620!20060601!074875162!074875162!009256819!N!BOEING SERVICE COMPANY !3373 BRECKINRIDGE BLVD !RICHARDSON !TX!75082!71900!009!12!TITUSVILLE !BREVARD !FLORIDA !+000000480432!N!N!000011543328!AC26!RDTE/MISSILE AND SPACE SYSTEMS-MGMT SUPPORT !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!003!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to BOEING AEROSPACE OPERATIONS, INC. for work described as: 200209!000186!5700!CZ24 !SMC/PKU KIRTLAND AFB !F0470102C0200 !A!N! !Y! !20020620!20060601!074875162!074875162!009256819!N!BOEING SERVICE COMPANY !3373 BRECKINRIDGE BLVD !RICHARDSON !TX!75082!71900!009!12!TITUSVILLE !BREVA… Key points: 1. Contract awarded to Boeing for missile and space systems R&D. 2. Significant value of $20.1 million over a 6-year period. 3. Full and open competition was utilized. 4. Sector is Research and Development, specifically missile and space systems.

Value Assessment

Rating: questionable

The contract value of $20.1 million over approximately 6 years for R&D in missile and space systems management support appears high without further detail on deliverables. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing mechanisms and how they were evaluated to ensure fair market value are not detailed.

Taxpayer Impact: Taxpayer funds are being used for advanced R&D in defense systems. The effectiveness and long-term benefit of this specific investment will determine the ultimate taxpayer impact.

Public Impact

Supports advanced missile and space systems development, potentially enhancing national security. Investment in R&D could lead to technological advancements with broader applications. Contract duration of over 6 years suggests a long-term strategic commitment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics and deliverables.
Potential for cost overruns in complex R&D projects.
Limited transparency on the specific R&D outcomes.

Positive Signals

Awarded through full and open competition.
Focus on critical defense R&D.
Long-term contract indicates strategic importance.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on missile and space systems management support. Spending in this area is critical for national defense but requires careful oversight due to its complexity and long lead times.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The awardee, Boeing, is a large aerospace corporation.

Oversight & Accountability

Oversight of this contract would typically be managed by the Department of Defense, likely through the Defense Contract Management Agency. Ensuring accountability for R&D spending requires clear milestones and performance reviews.

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 Plus Fixed Fee pricing can lead to cost overruns if not managed tightly.
R&D projects inherently carry a risk of not achieving desired outcomes.
Lack of specific deliverables makes value assessment challenging.
Long contract duration increases exposure to changing technological landscapes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to BOEING AEROSPACE OPERATIONS, INC.. 200209!000186!5700!CZ24 !SMC/PKU KIRTLAND AFB !F0470102C0200 !A!N! !Y! !20020620!20060601!074875162!074875162!009256819!N!BOEING SERVICE COMPANY !3373 BRECKINRIDGE BLVD !RICHARDSON !TX!75082!71900!009!12!TITUSVILLE !BREVARD !FLORIDA !+000000480432!N!N!000011543328!AC26!RDTE/MISSILE AND SPACE SYSTEMS-MGMT SUPPORT !A2 !MISSILE AND SPACE SYSTEMS !3000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is BOEING AEROSPACE OPERATIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.1 million.

What is the period of performance?

Start: 2002-06-20. End: 2008-12-31.

What specific technological advancements or capabilities are expected from this $20.1 million R&D investment?

The data indicates the contract is for 'RDTE/MISSILE AND SPACE SYSTEMS-MGMT SUPPORT'. Without further details, it's difficult to ascertain the precise technological advancements. However, it likely pertains to improving the management, efficiency, or effectiveness of existing or future missile and space systems, potentially involving software, data analytics, or operational enhancements.

How was the 'COST PLUS FIXED FEE' pricing structure evaluated to ensure it represents fair value for the R&D performed?

Cost Plus Fixed Fee contracts are common for R&D where scope can be uncertain. Fair value is typically assessed through detailed cost proposals, audits, and negotiation. The government would scrutinize Boeing's estimated costs and the fixed fee to ensure it aligns with industry standards and the anticipated effort, though specific details of this evaluation are not provided.

What are the key performance indicators (KPIs) and success metrics for this long-term R&D contract?

The provided data does not specify the key performance indicators or success metrics for this contract. For R&D contracts, these often include achieving specific technical milestones, demonstrating proof-of-concept, successful testing, or delivering improved system performance within defined parameters and timelines.

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 › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Boeing Company (UEI: 009256819)

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline