Boeing Awarded $38.5M for ADP Software, Raising Concerns Over Competition and Value

Contract Overview

Contract Amount: $38,478,544 ($38.5M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2006-06-16

End Date: 2013-09-30

Contract Duration: 2,663 days

Daily Burn Rate: $14.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: 200609!000065!5700!FA8107!OC-ALC/LAD B52 !FA810706C0001 !A!N! !N! ! !20060616!20070228!007237241!007237241!009256819!N!THE BOEING COMPANY !4615 SOUTH OLIVER !WICHITA !KS!67210!79000!173!20!WICHITA !SEDGWICK !KANSAS !+000001582300!N!N!000150000000!7030!ADP SOFTWARE !A1C!OTHER AIRCRAFT EQUIPMENT !000 !NOT DISCERNABLE !443120!E! !3! ! ! ! ! !99990909!B!F!Y!A! !D!U!U!1!001!N!1A!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!A!N! ! ! ! ! ! !0001! !

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67210

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $38.5 million to THE BOEING COMPANY for work described as: 200609!000065!5700!FA8107!OC-ALC/LAD B52 !FA810706C0001 !A!N! !N! ! !20060616!20070228!007237241!007237241!009256819!N!THE BOEING COMPANY !4615 SOUTH OLIVER !WICHITA !KS!67210!79000!173!20!WICHITA !SEDG… Key points: 1. The contract for ADP software was awarded to The Boeing Company without competition. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 3. The duration of the contract is over 7 years, suggesting a long-term need. 4. The sector is IT, specifically computer and software stores, but the PSC code is unclear. 5. There are concerns regarding the value and taxpayer impact due to the lack of competition.

Value Assessment

Rating: questionable

The contract value is $38.5 million over a period of more than 7 years. Without competitive bidding, it's difficult to assess if this price is reasonable compared to similar ADP software contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no competition. This significantly limits price discovery and could lead to inflated costs for the government.

Taxpayer Impact: The lack of competition raises concerns about whether taxpayers are receiving the best possible value for this significant expenditure.

Public Impact

Taxpayers may be overpaying for ADP software due to the absence of competitive bidding. The long contract duration could lock the government into a potentially suboptimal solution. Lack of transparency in the sole-source award process hinders public trust. The specific nature of the ADP software and its necessity is not clearly defined.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Long contract duration
Unclear PSC code

Positive Signals

Awarded to a major defense contractor
Potential for long-term software solution

Sector Analysis

This contract falls within the Information Technology sector, specifically computer and software stores. However, the Product Service Code (PSC) is listed as '443120', which is broad and could encompass various types of software. Benchmarking IT spending is challenging due to the diverse nature of software and services.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went directly to a large corporation, The Boeing Company.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the government is not being overcharged and that the software procured meets essential needs. Accountability is reduced without a competitive process.

Related Government Programs

Computer and Software Stores
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Cost-plus contract type
Long contract duration
Unclear Product Service Code
Potential for cost overruns
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.5 million to THE BOEING COMPANY. 200609!000065!5700!FA8107!OC-ALC/LAD B52 !FA810706C0001 !A!N! !N! ! !20060616!20070228!007237241!007237241!009256819!N!THE BOEING COMPANY !4615 SOUTH OLIVER !WICHITA !KS!67210!79000!173!20!WICHITA !SEDGWICK !KANSAS !+000001582300!N!N!000150000000!7030!ADP SOFTWARE !A1C!OTHER AIRCRAFT EQUIPMENT !000 !NOT DISCERNABLE !443120!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is THE BOEING COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38.5 million.

What is the period of performance?

Start: 2006-06-16. End: 2013-09-30.

What specific ADP software is being procured, and what is its criticality to the Department of Defense's operations?

The provided data does not specify the exact nature of the ADP software. ADP typically refers to Automated Data Processing. Without further details, it's impossible to ascertain its criticality. This lack of specificity is a concern, especially in a sole-source award, as it prevents a thorough assessment of necessity and value for money.

What justification was provided for awarding this contract on a sole-source basis, and were alternative solutions considered?

The data indicates the contract was 'NOT COMPETED'. Typically, sole-source awards require a justification, such as a unique capability or urgent need. Without this justification, it's impossible to assess if alternatives were explored or if this was the only viable option, raising questions about fair opportunity and potential cost savings.

How does the Cost Plus Fixed Fee structure impact the final cost and the government's risk exposure compared to other contract types?

A Cost Plus Fixed Fee (CPFF) contract reimburses the contractor for allowable costs and pays a fixed fee. While it incentivizes the contractor to control costs to maximize profit, it shifts cost risk to the government. If costs exceed estimates, the government pays more, potentially leading to a higher final price than a fixed-price contract.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

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

Address: 6001 S AIR DEPOT BLVD, OKLAHOMA CITY, OK, 73135

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline