Boeing awarded $8.5M for CSEL Contractor Logistic Support, with limited competition and a 3-year duration
Contract Overview
Contract Amount: $8,524,765 ($8.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-09-25
End Date: 2026-07-21
Contract Duration: 1,030 days
Daily Burn Rate: $8.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: COMBAT SURVIVOR EVADER LOCATOR (CSEL) CONTRACTOR LOGISTIC SUPPORT (CLS)
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
Department of Defense obligated $8.5 million to THE BOEING COMPANY for work described as: COMBAT SURVIVOR EVADER LOCATOR (CSEL) CONTRACTOR LOGISTIC SUPPORT (CLS) Key points: 1. The contract value of $8.5 million over three years suggests a moderate investment in specialized support services. 2. The sole-source nature of this award raises questions about potential price efficiencies and the availability of alternative solutions. 3. Performance is tied to a fixed-price contract, which typically shifts cost risk to the contractor. 4. The support services are critical for the Combat Survivor Evader Locator system, indicating a high-stakes operational requirement. 5. This contract falls within the professional, scientific, and technical services sector, characterized by specialized expertise. 6. The geographic focus on California for logistic support implies a concentration of CSEL assets or operational hubs in the region.
Value Assessment
Rating: fair
Benchmarking the value of this $8.5 million contract is challenging without specific performance metrics or comparable sole-source agreements. However, the fixed-price structure is a positive indicator for cost control. The duration of approximately three years suggests a need for sustained support, but the lack of competitive bidding prevents a direct comparison of pricing against market alternatives. Further analysis would require understanding the specific technical requirements and the cost drivers for contractor logistic support in this niche area.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, The Boeing Company, was solicited. This approach is typically used when a unique capability or proprietary technology is required, or in situations where only one source is available. The lack of competition means that taxpayers did not benefit from a price discovery process that could have emerged from multiple bids, potentially leading to higher costs than if the contract had been competed.
Taxpayer Impact: The sole-source award limits the government's ability to secure the best possible price through competitive negotiation, potentially resulting in a less favorable outcome for taxpayers compared to a fully competed contract.
Public Impact
The primary beneficiaries are military personnel who rely on the Combat Survivor Evader Locator (CSEL) system for survival and recovery operations. The services delivered include contractor logistic support, ensuring the operational readiness and maintenance of the CSEL system. The geographic impact is concentrated in California, where the logistic support activities will be performed. Workforce implications include the potential for specialized technical and logistical jobs within The Boeing Company and its subcontractors in California.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potential taxpayer savings.
- Lack of transparency in the justification for sole-source procurement.
- Potential for cost overruns if not closely managed due to lack of competitive pressure.
- Dependence on a single contractor for critical survival equipment support.
Positive Signals
- Fixed-price contract shifts cost risk to the contractor.
- Boeing's established expertise in aerospace and defense systems.
- Contract ensures continued operational readiness of vital survival equipment.
Sector Analysis
The Combat Survivor Evader Locator (CSEL) Contractor Logistic Support (CLS) contract falls within the broader professional, scientific, and technical services sector. This sector is characterized by highly specialized knowledge and support functions. The market for defense-related logistic support is often concentrated among a few large prime contractors with the necessary security clearances, technical expertise, and infrastructure. Benchmarking this $8.5 million contract requires comparison to similar CLS contracts for specialized defense systems, which can vary significantly based on system complexity and operational tempo.
Small Business Impact
This contract does not appear to include a small business set-aside. As a sole-source award to a large prime contractor, The Boeing Company, there are no direct subcontracting implications for small businesses mandated by this specific award. However, large prime contractors are often encouraged or required by broader federal policy to subcontract with small businesses for various components and services, which may indirectly benefit small businesses if Boeing adheres to such practices.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force, with specific contracting officers and program managers responsible for monitoring performance and ensuring compliance with the fixed-price terms. Transparency is limited due to the sole-source nature. Accountability measures will be embedded within the contract's performance work statement and delivery schedules. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Combat Survivor Evader Locator (CSEL) System
- Contractor Logistic Support (CLS)
- Department of Defense Logistics and Maintenance Contracts
- Aerospace and Defense Services Contracts
Risk Flags
- Sole-source award may indicate limited market competition.
- Lack of detailed performance metrics in the award data.
- Potential for increased costs due to lack of competitive bidding.
Tags
defense, department-of-defense, department-of-the-air-force, contractor-logistic-support, sole-source, firm-fixed-price, professional-scientific-and-technical-services, california, csel, boeing
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.5 million to THE BOEING COMPANY. COMBAT SURVIVOR EVADER LOCATOR (CSEL) CONTRACTOR LOGISTIC SUPPORT (CLS)
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 $8.5 million.
What is the period of performance?
Start: 2023-09-25. End: 2026-07-21.
What is the historical spending on CSEL Contractor Logistic Support by the Department of Defense?
Historical spending data for CSEL Contractor Logistic Support is not readily available in the provided data snippet. However, the current award of $8.5 million for a period of approximately three years suggests a sustained, albeit moderate, level of investment in maintaining the CSEL system's operational readiness. To provide a comprehensive historical context, a deeper dive into the Federal Procurement Data System (FPDS) or other government spending databases would be necessary to identify previous contracts, their values, durations, and the contractors involved in providing similar logistic support for the CSEL system. This would help in understanding spending trends and identifying any significant fluctuations or increases in investment over time.
How does the pricing of this contract compare to similar sole-source logistic support contracts for defense systems?
Directly comparing the pricing of this $8.5 million sole-source contract to similar contracts is challenging without access to detailed pricing structures and performance metrics of those comparable agreements. Sole-source awards inherently lack the price discovery mechanism of competitive bidding, making external benchmarking difficult. However, the fixed-price nature of this contract is a positive indicator, as it places the cost risk on the contractor, The Boeing Company. To assess value, one would need to analyze the specific deliverables, the complexity of the support required for the CSEL system, and compare the implied hourly or daily rates against industry standards for highly specialized technical and logistic support, considering Boeing's established position in the defense sector.
What are the key performance indicators (KPIs) for this contract, and how is Boeing's performance being measured?
The provided data does not specify the key performance indicators (KPIs) for this Combat Survivor Evader Locator (CSEL) Contractor Logistic Support (CLS) contract. Typically, for CLS contracts, KPIs would focus on aspects such as system availability rates, response times for maintenance and repair, turnaround times for parts replacement, adherence to maintenance schedules, and overall system reliability. Performance measurement would likely involve regular reporting by the contractor, government inspections and audits, and potentially user feedback from military personnel utilizing the CSEL system. The fixed-price nature of the contract implies that meeting these KPIs is crucial for Boeing to achieve profitability without incurring cost overruns.
What is the justification for awarding this contract on a sole-source basis to The Boeing Company?
The justification for awarding this contract on a sole-source basis to The Boeing Company is not detailed in the provided data. Generally, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is capable of providing the required supplies or services, or when there is a compelling urgency. For a system like CSEL, it's possible that Boeing possesses unique technical expertise, proprietary data, or has an established infrastructure for its support that makes it the only viable option. A formal justification document, often referred to as a Justification and Approval (J&A), would typically be required and made publicly available, detailing the rationale behind the sole-source decision.
What is the potential impact of this contract on the operational readiness of the CSEL system?
This contract is directly aimed at ensuring the operational readiness of the Combat Survivor Evader Locator (CSEL) system. By providing contractor logistic support, the Department of Defense ensures that the system receives necessary maintenance, repairs, and potentially upgrades, thereby minimizing downtime and maximizing its availability for use by military personnel. The CSEL system is critical for personnel recovery operations, making its readiness a high priority. The $8.5 million investment over approximately three years signifies a commitment to maintaining this capability, and the performance of The Boeing Company under this fixed-price contract will be a key determinant of the system's sustained operational effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA821723R5014
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 14441 ASTRONAUTICS LN, 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: $8,524,765
Exercised Options: $8,524,765
Current Obligation: $8,524,765
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $40,636
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA821723D0002
IDV Type: IDC
Timeline
Start Date: 2023-09-25
Current End Date: 2026-07-21
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2026-01-14
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