Boeing Awarded $13.3 Billion for Space Vehicles, Navstar GPS Systems

Contract Overview

Contract Amount: $3,374,336,190 ($3.4B)

Contractor: Rockwell International Corp

Awarding Agency: Department of Defense

Start Date: 1996-11-04

End Date: 2017-03-31

Contract Duration: 7,452 days

Daily Burn Rate: $452.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200506!000037!5700!FA8807!SMC/GPK !F0470196C0025 !A!N! !N! !P00330!20041101!20121231!133039797!133039797!009256819!N!THE BOEING COMPANY !5301 BOLSA AVENUE !HUNTINGTON BEA !CA!92647!36000!059!06!HUNTINGTON BEACH !ORANGE !CALIFORNIA!+000048080800!N!N!000000000000!1810!SPACE VEHICLES !A2 !MISSILE AND SPACE SYSTEMS !166 !NAVSTAR GPS !541710!E! !3! ! !H! ! !20200930!B! ! !A! !A!N!R!2!002!B! !Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SEAL BEACH, ORANGE County, CALIFORNIA, 90740

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $3.37 billion to ROCKWELL INTERNATIONAL CORP for work described as: 200506!000037!5700!FA8807!SMC/GPK !F0470196C0025 !A!N! !N! !P00330!20041101!20121231!133039797!133039797!009256819!N!THE BOEING COMPANY !5301 BOLSA AVENUE !HUNTINGTON BEA !CA!92647!36000!059!06!HUNTINGTON BEACH !ORAN… Key points: 1. The contract, valued at $13.3 billion, is for space vehicles and Navstar GPS systems. 2. The primary contractor is The Boeing Company, with Rockwell International Corp as a predecessor. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The sector is Defense, specifically Research and Development in Physical, Engineering, and Life Sciences.

Value Assessment

Rating: good

The contract value of $13.3 billion over its duration appears substantial for space vehicles and GPS systems. Benchmarking against similar large-scale defense contracts would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: The significant value of this contract means taxpayer funds are being allocated to advanced defense systems, with the expectation of value derived from technological advancement and national security.

Public Impact

Enhances national security through advanced GPS technology. Supports technological innovation in space and defense sectors. Creates jobs in aerospace and related industries. Contributes to the reliability of critical defense communication and navigation systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 10 years) may introduce risks related to technological obsolescence or changing requirements.
High contract value necessitates robust oversight to ensure efficient use of funds.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Focus on critical defense infrastructure like GPS.
Experienced contractor with a history in aerospace.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on advanced research and development for space vehicles and navigation systems. Spending in this area is crucial for maintaining technological superiority and national security, with significant investments typically seen in R&D for cutting-edge defense capabilities.

Small Business Impact

While The Boeing Company is the prime contractor, the contract details do not specify the extent of small business participation. Large defense contracts often involve complex supply chains where small businesses can play a vital role as subcontractors.

Oversight & Accountability

The contract's long duration and substantial value warrant continuous oversight from agencies like the Department of Defense and the Defense Contract Management Agency to ensure performance, cost control, and adherence to specifications.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential for cost overruns due to complexity and long duration.
Risk of technological obsolescence over the contract's lifespan.
Dependence on a single prime contractor for critical national infrastructure.
Geopolitical factors could impact supply chain or program requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.37 billion to ROCKWELL INTERNATIONAL CORP. 200506!000037!5700!FA8807!SMC/GPK !F0470196C0025 !A!N! !N! !P00330!20041101!20121231!133039797!133039797!009256819!N!THE BOEING COMPANY !5301 BOLSA AVENUE !HUNTINGTON BEA !CA!92647!36000!059!06!HUNTINGTON BEACH !ORANGE !CALIFORNIA!+000048080800!N!N!000000000000!1810!SPACE VEHICLES !A2 !MISSILE AND SPACE SYSTEMS !166 !NAVSTAR GPS !541710!E! !3! ! !H! ! !202

Who is the contractor on this award?

The obligated recipient is ROCKWELL INTERNATIONAL CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.37 billion.

What is the period of performance?

Start: 1996-11-04. End: 2017-03-31.

What is the specific technological advancement or capability improvement this contract aims to achieve beyond existing systems?

The contract likely aims to upgrade or maintain the Navstar GPS constellation and associated space vehicles, potentially incorporating advancements in signal security, accuracy, resilience to jamming, or new functionalities. Specific details on technological leaps would require access to the contract's technical exhibits and statements of work, which are typically not publicly disclosed in detail.

How does the cost per unit or per year compare to similar GPS satellite or space vehicle development contracts?

Without specific unit breakdowns or comparable contract data, a precise per-unit cost comparison is difficult. However, the total value spread over the contract's duration suggests a significant investment per year. Benchmarking against historical GPS program costs or similar satellite development programs would be necessary for a thorough assessment of cost efficiency.

What are the key performance indicators (KPIs) and how is contractor performance being measured to ensure mission success?

Key performance indicators for such a contract would likely include satellite reliability, on-orbit lifespan, signal accuracy, system availability, and timely delivery of milestones. Performance is typically monitored through regular reporting, technical reviews, and adherence to stringent quality assurance protocols by the contracting agency.

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: SPACE VEHICLES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12214 LAKEWOOD BLVD, DOWNEY, CA, 90242

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $848,225,972

Exercised Options: $870,324,537

Current Obligation: $3,374,336,190

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline