Boeing awarded $20.3M for Combat Survivor Evader Locator (CSEL) contractor logistics support

Contract Overview

Contract Amount: $20,299,845 ($20.3M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2025-01-01

End Date: 2026-03-31

Contract Duration: 454 days

Daily Burn Rate: $44.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COMBAT SURVIVOR EVADER LOCATOR (CSEL), CONTRACTOR LOGISTICS SUPPORT (CLS) TASK ORDER FOR YEAR 3 COVERAGE.

Place of Performance

Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to THE BOEING COMPANY for work described as: COMBAT SURVIVOR EVADER LOCATOR (CSEL), CONTRACTOR LOGISTICS SUPPORT (CLS) TASK ORDER FOR YEAR 3 COVERAGE. Key points: 1. Contract awarded to a single, established provider, raising questions about competitive pricing. 2. Logistics support for critical survival equipment suggests high operational necessity. 3. Firm Fixed Price contract type aims to control costs, but limited competition may inflate rates. 4. Contract duration of over 1.5 years indicates a significant, ongoing need. 5. Focus on Year 3 coverage suggests this is part of a larger, multi-year support strategy. 6. The specific nature of CSEL support may limit the pool of qualified contractors.

Value Assessment

Rating: fair

The contract value of $20.3 million for approximately 1.5 years of logistics support for the CSEL system appears to be within a reasonable range for specialized defense systems. However, without direct comparable contracts for CSEL logistics or detailed cost breakdowns, a precise value-for-money assessment is challenging. The firm fixed-price structure provides cost certainty, but the lack of competition could mean the government is not achieving the lowest possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one contractor was solicited. This approach is typically used when only one responsible source is available or when there is a compelling justification for not seeking full and open competition. The lack of multiple bidders means there was no direct price comparison or negotiation against alternatives, potentially leading to a higher price than if the contract had been competed.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the best possible pricing for taxpayers. This can result in higher overall spending compared to competitively awarded contracts for similar services.

Public Impact

Provides essential contractor logistics support for the Combat Survivor Evader Locator (CSEL) system. Ensures the operational readiness and effectiveness of a critical survival system for military personnel. Supports Air Force operations, potentially impacting personnel safety and mission success across various deployments. The contract is managed by the Department of the Air Force, indicating a focus on Air Force personnel and assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings for taxpayers.
Lack of competition may reduce incentives for the contractor to innovate or improve service efficiency.
Dependence on a single contractor for critical logistics support creates potential supply chain risks.

Positive Signals

Firm Fixed Price contract provides cost certainty for the duration of the award.
The contractor, Boeing, is a well-established defense contractor with extensive experience.
The CSEL system is critical for personnel survival, indicating a high priority for support.

Sector Analysis

The defense logistics and support services sector is a significant segment of the federal contracting market. This contract falls within the broader category of professional, scientific, and technical services, specifically tailored to the unique needs of military equipment. The market for specialized defense system support is often characterized by high barriers to entry due to technical expertise, security clearances, and established relationships, which can lead to a concentration of contracts among a few large prime contractors.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the sole-source nature and the specialized requirements of supporting the CSEL system, it is unlikely that significant subcontracting opportunities for small businesses will be mandated or readily available, unless the prime contractor proactively seeks them out.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Air Force, likely through contracting officers and program managers responsible for the CSEL system. Transparency is generally maintained through contract award databases and reporting requirements. However, the specific details of performance metrics and quality assurance surveillance plans are typically internal to the agency and the contractor, with potential oversight from the Government Accountability Office (GAO) or the Inspector General if specific issues arise.

Related Government Programs

Combat Survivor Evader Locator (CSEL) Program
Defense Logistics Support Services
Air Force Materiel Command Contracts
Specialized Military Equipment Support

Risk Flags

Sole-source award
Potential for cost overruns due to lack of competition
Dependency on a single contractor for critical system support

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to THE BOEING COMPANY. COMBAT SURVIVOR EVADER LOCATOR (CSEL), CONTRACTOR LOGISTICS SUPPORT (CLS) TASK ORDER FOR YEAR 3 COVERAGE.

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 $20.3 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-03-31.

What is the historical spending trend for CSEL contractor logistics support?

Analyzing historical spending for CSEL contractor logistics support is crucial for understanding cost trends and identifying potential anomalies. While specific historical data for this exact task order is not provided, the 'br' field indicates a prior obligation of $44,713, suggesting this is a continuation or expansion of existing support. A comprehensive review would involve examining previous years' contract awards for CSEL CLS, including the number of contracts, their values, durations, and the contractors involved. Significant year-over-year increases or decreases, especially in conjunction with changes in system deployment or operational tempo, would warrant further investigation into the drivers of those spending patterns. Understanding this history helps benchmark the current $20.3 million award and assess if it aligns with established cost trajectories or represents a notable shift.

How does the firm fixed-price (FFP) contract type impact cost control for this CSEL support?

The Firm Fixed Price (FFP) contract type is generally favored by the government for cost control because it shifts the risk of cost overruns to the contractor. Under an FFP agreement, the contractor is obligated to perform the specified work for a predetermined price, regardless of their actual costs. This incentivizes the contractor to manage their expenses efficiently and accurately estimate their costs upfront. For the CSEL logistics support, this means Boeing is responsible for delivering the contracted services within the $20.3 million budget. However, the effectiveness of FFP in controlling costs is heavily dependent on the accuracy of the initial price negotiation and the contractor's ability to manage their operations. In a sole-source environment, the initial price negotiation is critical, as there is no competitive pressure to drive the price down.

What are the potential risks associated with a sole-source award for critical defense logistics?

Sole-source awards for critical defense logistics, such as the CSEL system support, present several potential risks. Firstly, the lack of competition can lead to inflated prices, as the government does not benefit from market forces driving down costs. Secondly, it can reduce the incentive for the contractor to innovate or improve service delivery, as there is no competitive threat. Thirdly, it creates a high degree of dependency on a single provider, making the system vulnerable to disruptions if the contractor experiences financial difficulties, operational issues, or decides to exit the market. This dependency can also limit the government's flexibility in adapting to changing requirements or adopting new technologies. Ensuring robust performance standards and clear exit strategies in the contract is vital to mitigate these risks.

What is the track record of The Boeing Company in providing similar logistics support for defense systems?

The Boeing Company has a long and extensive track record in providing a wide range of logistics and support services for complex defense systems across various branches of the U.S. military and international partners. Their experience spans aircraft, missile defense, and other sophisticated platforms, often involving global supply chain management, maintenance, repair, and overhaul (MRO), and technical support. Boeing is known for its capabilities in managing large-scale, long-term support contracts. For CSEL specifically, their involvement suggests a deep understanding of the system's technical requirements and operational context. While their general track record is strong, the specific performance and cost-effectiveness of their CSEL logistics support would be detailed in past performance evaluations during any potential future competitive procurements.

How does the geographic location of contract performance (California) influence logistics and costs?

The contract performance location noted as 'CALIFORNIA' (SN: 'CA') can influence logistics and costs in several ways. If the primary operations or support facilities for the CSEL system are based in California, having the contractor located there can streamline logistical movements, reduce transit times for parts and personnel, and potentially lower transportation expenses. It may also facilitate closer collaboration between the contractor and Air Force units stationed in the state. However, California is also known for its higher operating costs, including labor and facility expenses, which could be reflected in the contract's overall price. The specific impact depends on whether the 'CA' designation refers to the contractor's headquarters, a specific performance site, or the primary region of service delivery for the CSEL system.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $20,299,845

Exercised Options: $20,299,845

Current Obligation: $20,299,845

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $864,296

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