DoD awards Boeing $45.5M for CSEL NGCA, raising concerns over limited competition and cost-plus contract
Contract Overview
Contract Amount: $45,519,068 ($45.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2017-10-31
End Date: 2022-03-31
Contract Duration: 1,612 days
Daily Burn Rate: $28.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: IGF::OT::IGF NEXT GENERATION CRYPTOGRAPHIC ARCHITECTURE (NGCA) FOR THE COMBAT SURVIVOR EVADER LOCATOR (CSEL) PROGRAM
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
Department of Defense obligated $45.5 million to THE BOEING COMPANY for work described as: IGF::OT::IGF NEXT GENERATION CRYPTOGRAPHIC ARCHITECTURE (NGCA) FOR THE COMBAT SURVIVOR EVADER LOCATOR (CSEL) PROGRAM Key points: 1. Significant contract value awarded to a single vendor. 2. Lack of competition may lead to inflated costs. 3. Cost-plus contract type introduces financial risk. 4. Focus on advanced communication technology for critical defense systems.
Value Assessment
Rating: questionable
The $45.5M award to Boeing for the CSEL NGCA program is substantial. Without competitive benchmarks, it's difficult to assess if this price is optimal. The cost-plus incentive fee structure necessitates close monitoring to ensure cost efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, indicating a limited source selection. This approach can reduce administrative burden but may forgo potential cost savings and innovation that could arise from a competitive bidding process.
Taxpayer Impact: The lack of competition raises concerns about taxpayer value, as the government may not be securing the best possible price or terms.
Public Impact
Ensures critical communication capabilities for combat survivors. Supports advanced cryptographic architecture for secure data transmission. Potential for cost overruns due to contract type and limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Supports critical defense mission
- Utilizes advanced technology
Sector Analysis
This contract falls within the defense sector, specifically focusing on advanced communications equipment manufacturing. Spending in this area is crucial for national security, but often involves high R&D costs and specialized production.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. Future opportunities should explore avenues for small business participation in the supply chain or related services.
Oversight & Accountability
The Department of the Air Force awarded this contract. Oversight will be critical to manage costs and ensure performance under the cost-plus incentive fee structure, especially given the lack of competition.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may lead to higher costs.
- Cost-plus contract type increases financial risk.
- Potential for contractor to prioritize profit over cost efficiency.
- Limited transparency on pricing justification.
- Dependency on a single contractor for critical technology.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.5 million to THE BOEING COMPANY. IGF::OT::IGF NEXT GENERATION CRYPTOGRAPHIC ARCHITECTURE (NGCA) FOR THE COMBAT SURVIVOR EVADER LOCATOR (CSEL) PROGRAM
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $45.5 million.
What is the period of performance?
Start: 2017-10-31. End: 2022-03-31.
What is the justification for not competing this contract, and what steps were taken to ensure fair and reasonable pricing?
The justification for not competing this contract is not provided in the data. Typically, sole-source or limited competition is used when only one source possesses the necessary capabilities or technology. To ensure fair and reasonable pricing, the government should conduct a thorough price analysis, potentially using historical data, cost realism assessments, and market research, even without direct competition.
What are the specific risks associated with the cost-plus incentive fee (CPIF) contract type for this program?
The primary risk with a CPIF contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to cover allowable costs plus a fee. While the incentive component aims to align contractor and government interests, potential for cost overruns remains, especially if the target cost is not well-defined or if scope creep occurs without adequate adjustments.
How does the NGCA program contribute to the overall effectiveness and security of the CSEL system?
The Next Generation Cryptographic Architecture (NGCA) is crucial for enhancing the security and resilience of the Combat Survivor Evader Locator (CSEL) program. By upgrading the cryptographic capabilities, it ensures that sensitive location and communication data transmitted by CSEL devices remains protected against evolving threats, thereby improving the reliability and effectiveness of rescue and support operations for downed or isolated personnel.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA821717R0424
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 5301 BOLSA AVE, HUNTINGTON BEACH, CA, 92647
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: $50,723,438
Exercised Options: $45,822,068
Current Obligation: $45,519,068
Actual Outlays: $766,874
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-10-31
Current End Date: 2022-03-31
Potential End Date: 2022-03-31 00:00:00
Last Modified: 2024-09-03
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