Boeing Awarded $26.4M for Mission Display Processors by Air Force

Contract Overview

Contract Amount: $26,370,586 ($26.4M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2016-02-18

End Date: 2020-07-07

Contract Duration: 1,601 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF TASK ORDER FOR THE MISSION DISPLAY PROCESSOR (MDP).

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $26.4 million to THE BOEING COMPANY for work described as: IGF::OT::IGF TASK ORDER FOR THE MISSION DISPLAY PROCESSOR (MDP). Key points: 1. The contract is for Mission Display Processors, a critical component for aircraft. 2. Awarded to The Boeing Company, indicating a significant relationship with this prime contractor. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The duration of the contract is over 4 years, indicating a long-term need.

Value Assessment

Rating: good

The contract value of $26.4 million over approximately 4 years appears reasonable for specialized aircraft components. Benchmarking against similar complex electronic systems would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which generally promotes competitive pricing. The specific pricing mechanisms and the number of bids received would further clarify the price discovery effectiveness.

Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by encouraging multiple bidders to offer competitive prices.

Public Impact

Supports Air Force readiness and operational capabilities through advanced display technology. Contributes to the aerospace manufacturing sector, potentially supporting jobs and innovation. Ensures pilots have access to critical flight information, enhancing safety and mission effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in long-term fixed-price contracts.
  • Reliance on a single prime contractor for critical components.

Positive Signals

  • Awarded through full and open competition.
  • Supports a key defense mission.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically related to aircraft components. Spending in this area is driven by military modernization and sustainment needs.

Small Business Impact

The data does not indicate any specific subcontracting goals or participation by small businesses in this contract award. Further analysis would be needed to assess small business involvement.

Oversight & Accountability

The contract was awarded by the Department of the Air Force. Oversight would typically involve contract management by the procuring agency to ensure timely delivery and adherence to specifications.

Related Government Programs

  • Other Aircraft Parts and Auxiliary Equipment Manufacturing
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Long contract duration increases risk of price escalation.
  • Potential for contractor lock-in if competition was limited in practice.
  • Dependence on a single supplier for critical technology.
  • Lack of transparency on specific performance metrics and quality assurance.

Tags

other-aircraft-parts-and-auxiliary-equip, department-of-defense, mo, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.4 million to THE BOEING COMPANY. IGF::OT::IGF TASK ORDER FOR THE MISSION DISPLAY PROCESSOR (MDP).

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 $26.4 million.

What is the period of performance?

Start: 2016-02-18. End: 2020-07-07.

What is the specific function and criticality of the Mission Display Processor (MDP) for the Air Force's aircraft?

The Mission Display Processor (MDP) is a crucial avionics component that processes and displays flight, navigation, and tactical information to pilots. Its criticality lies in providing real-time, integrated situational awareness, directly impacting pilot decision-making, mission success, and overall aircraft safety. Modern MDPs are complex systems integrating various data streams into a user-friendly interface.

What are the potential risks associated with a firm fixed-price contract for a complex system like the MDP over a four-year period?

A firm fixed-price contract for a complex system over an extended period carries risks of cost overruns for the contractor if unforeseen technical challenges or material cost increases arise. For the government, the risk is paying a potentially inflated price if competition was not robust or if the contractor fails to deliver on time or to specification, leading to schedule delays and potential rework costs.

How does the use of full and open competition for this contract ensure value for taxpayer money?

Full and open competition ensures value by allowing multiple qualified vendors to bid on the contract, fostering a competitive environment. This typically drives down prices as companies strive to offer the most attractive bid. It also encourages innovation and efficiency as contractors aim to differentiate themselves. The government benefits from a wider range of solutions and a greater likelihood of securing the best possible price and quality.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingOther Aircraft Parts and Auxiliary Equipment Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA821115R0001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134

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: $26,370,586

Exercised Options: $26,370,586

Current Obligation: $26,370,586

Actual Outlays: $4,342,443

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $3,193,797

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA821116D0001

IDV Type: IDC

Timeline

Start Date: 2016-02-18

Current End Date: 2020-07-07

Potential End Date: 2020-07-07 00:00:00

Last Modified: 2020-09-09

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