DoD Awards Boeing $194M for CLS Aircraft Systems Engineering Services in 1997

Contract Overview

Contract Amount: $239,324,576 ($239.3M)

Contractor: Boeing Aerospace Operations, I

Awarding Agency: Department of Defense

Start Date: 1997-02-28

End Date: 2010-09-30

Contract Duration: 4,962 days

Daily Burn Rate: $48.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 199706!5700!0060!GD90 !OC-ALC/LKD (CLS AIRCRAFT) !F3460197C0211 !A!*!* !19970228!19970930!194293544!085188316!009256819!N!0LRY9!BOEING AEROSPACE OPERATIONS IN!2601 LIBERTY PKWY !OKLAHOMA CITY !OK!73110!48350!109!40!MIDWEST CITY !OKLAHOMA !OKLAHOMA !0001!+000001447470!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A1A!AIRFRAMES AND SPARES !3AMB!AABNCP-E4 !3728!3!*!*!*!B!A!*!D !N!Y!1!001!N!1G!Z!Y!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!B!N!*!*!*!*!*!

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $239.3 million to BOEING AEROSPACE OPERATIONS, I for work described as: 199706!5700!0060!GD90 !OC-ALC/LKD (CLS AIRCRAFT) !F3460197C0211 !A!*!* !19970228!19970930!194293544!085188316!009256819!N!0LRY9!BOEING AEROSPACE OPERATIONS IN!2601 LIBERTY PKWY !OKLAHOMA CITY !OK!73110!48350!109!40!MIDWEST CITY !OKLAHO… Key points: 1. Significant contract value awarded to a single large aerospace company. 2. Sole-source award raises questions about competition and potential price inflation. 3. Long contract duration (13+ years) suggests a critical, ongoing need. 4. Focus on systems engineering for aircraft points to complex, high-value defense assets.

Value Assessment

Rating: questionable

The contract value of $194 million for systems engineering services is substantial. Without comparable contracts for similar services, it's difficult to benchmark pricing effectively. The long duration and sole-source nature warrant scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This significantly limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this large contract likely results in a higher cost to taxpayers than if it had been competitively bid.

Public Impact

Taxpayers may be overpaying due to the lack of competition. The long-term nature of the contract could lock the government into potentially suboptimal pricing. Dependence on a single contractor for critical aircraft systems engineering raises national security considerations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
Lack of competition
Potential for cost overruns

Positive Signals

Awarded to a major aerospace contractor with established expertise
Addresses critical defense needs for aircraft systems engineering

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting aerospace and defense. Spending benchmarks for such specialized services are highly variable, but large, long-term sole-source contracts often attract scrutiny for value.

Small Business Impact

This contract was awarded to Boeing, a large prime contractor, and there is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The sole-source nature of this award suggests limited initial oversight on price competition. Ongoing oversight would be crucial to ensure effective performance and manage costs over the contract's long duration.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competition
Potential for cost overruns due to long duration
Lack of transparency in pricing justification
High contract value concentrated with one vendor
Extended performance period may not reflect current needs or technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $239.3 million to BOEING AEROSPACE OPERATIONS, I. 199706!5700!0060!GD90 !OC-ALC/LKD (CLS AIRCRAFT) !F3460197C0211 !A!*!* !19970228!19970930!194293544!085188316!009256819!N!0LRY9!BOEING AEROSPACE OPERATIONS IN!2601 LIBERTY PKWY !OKLAHOMA CITY !OK!73110!48350!109!40!MIDWEST CITY !OKLAHOMA !OKLAHOMA !0001!+000001447470!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A1A!AIRFRAMES AND SPARES !3AMB!AABNCP-E4 !3728!3!*!*!*!B!A!*!D !N!Y!1!0

Who is the contractor on this award?

The obligated recipient is BOEING AEROSPACE OPERATIONS, I.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $239.3 million.

What is the period of performance?

Start: 1997-02-28. End: 2010-09-30.

What was the justification for awarding this contract on a sole-source basis, and were alternatives considered?

The justification for a sole-source award is critical for understanding the necessity of bypassing competition. Typically, sole-source contracts are justified by factors such as unique capabilities, urgent needs, or the unavailability of other sources. Without this justification, it's difficult to assess if the government adequately explored competitive options or if this represented a missed opportunity for better value.

How does the cost of these systems engineering services compare to industry benchmarks for similar contracts, especially given the long duration?

Benchmarking the cost of these systems engineering services is challenging without specific details on the scope of work and comparable contracts. However, the long duration (over 13 years) and sole-source nature raise concerns about potential cost escalation and whether the pricing reflects current market rates or historical agreements. A thorough review of performance metrics and cost trends would be necessary.

What mechanisms are in place to ensure the effectiveness and efficiency of Boeing's systems engineering services throughout the contract's extended period?

Given the extended duration of this contract, robust oversight mechanisms are essential to ensure effectiveness and efficiency. This includes regular performance reviews, clear deliverables, and key performance indicators (KPIs) tied to contract payments. The Department of Defense should actively monitor contractor performance and adapt oversight strategies as technology and operational needs evolve over the contract's lifespan.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2601 LIBERTY PKWY, OKLAHOMA CITY, OK, 73110

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,447,470

Exercised Options: $1,447,470

Current Obligation: $239,324,576

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline