Boeing awarded $32.18M for VHF radios, with a 7-year performance period
Contract Overview
Contract Amount: $32,182,072 ($32.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2016-02-18
End Date: 2023-02-17
Contract Duration: 2,556 days
Daily Burn Rate: $12.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF TASK ORDER FOR THE VHF COMMUNICATION / VHF NAVIGATION RADIOS (VHF).
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $32.2 million to THE BOEING COMPANY for work described as: IGF::OT::IGF TASK ORDER FOR THE VHF COMMUNICATION / VHF NAVIGATION RADIOS (VHF). Key points: 1. Contract awarded to a single, large prime contractor. 2. Long performance period suggests a need for sustained support. 3. Fixed-price contract type shifts risk to the contractor. 4. Procurement falls under 'Other Aircraft Parts' manufacturing. 5. Delivery order under an existing contract vehicle. 6. Significant duration indicates a critical, long-term requirement.
Value Assessment
Rating: fair
The total contract value of $32.18 million over seven years averages to approximately $4.6 million annually. Benchmarking this against similar sustainment contracts for aviation electronics is challenging without more specific details on the scope of work and the exact nature of the VHF radios. However, the firm-fixed-price structure suggests that the contractor, Boeing, bears the primary risk for cost overruns. The value appears reasonable for a long-term sustainment effort for specialized communication equipment, but a detailed cost breakdown would be needed for a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the fact that it was competed openly suggests a healthy market for these types of communication radios. Open competition generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.
Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best possible price and quality for the required VHF communication and navigation radios.
Public Impact
The U.S. Air Force benefits from the reliable operation of VHF communication and navigation radios. Ensures continued operational capability for aircraft requiring these specific radio systems. Supports aviation safety and mission effectiveness for the Department of Defense. The contract supports jobs within The Boeing Company and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to vendor lock-in if not managed carefully.
- Reliance on a single large prime contractor may limit future competition for upgrades or replacements.
Positive Signals
- Firm-fixed-price contract shifts cost risk to the contractor.
- Awarded under full and open competition, suggesting a competitive market.
- Long performance period indicates a stable, ongoing need for the equipment.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts and electronic systems manufacturing. The market for specialized aviation communication and navigation equipment is typically dominated by a few large, established players like Boeing. Spending in this sub-sector is driven by military modernization programs, sustainment of existing fleets, and evolving communication standards. Comparable spending benchmarks would involve looking at other sustainment contracts for avionics and communication systems across various military branches.
Small Business Impact
The contract data indicates that small business participation was not a primary set-aside objective for this specific award, as it was awarded to The Boeing Company. There is no explicit information on subcontracting plans for small businesses within the provided data. However, large prime contractors like Boeing often engage small businesses for specialized components or services, but the extent of this subcontracting is not detailed here. Further analysis would be needed to determine the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. As a delivery order under an existing contract vehicle, it likely leverages established oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Aircraft Communication Systems
- Avionics Sustainment
- Department of Defense Procurement
- Air Force Logistics Contracts
- VHF Radio Systems
Risk Flags
- Long contract duration may increase risk of technological obsolescence.
- Reliance on a single large prime contractor could limit future market options.
Tags
defense, department-of-defense, department-of-the-air-force, the-boeing-company, firm-fixed-price, delivery-order, full-and-open-competition, aircraft-parts, communication-equipment, missouri, aviation, electronics
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.2 million to THE BOEING COMPANY. IGF::OT::IGF TASK ORDER FOR THE VHF COMMUNICATION / VHF NAVIGATION RADIOS (VHF).
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 $32.2 million.
What is the period of performance?
Start: 2016-02-18. End: 2023-02-17.
What is the specific type and model of VHF radios being procured, and what are their key technical specifications?
The provided data identifies the procurement as 'VHF COMMUNICATION / VHF NAVIGATION RADIOS (VHF)' under task order number 336413. However, it does not specify the exact make, model, or detailed technical specifications of these radios. These radios are crucial for air traffic control communication and navigation, operating within the Very High Frequency spectrum (30-300 MHz). The specific models would likely be proprietary to The Boeing Company or its suppliers and would detail features such as frequency range, power output, modulation capabilities, interoperability standards, and environmental operating conditions (e.g., temperature, vibration resistance). Understanding these specifications is key to assessing their technological relevance and potential obsolescence risks.
How does the $32.18 million contract value compare to historical spending on similar VHF radio systems by the Air Force?
Comparing the $32.18 million contract value for VHF radios requires context on historical spending patterns for similar systems. This contract, awarded in February 2016 and ending in February 2023, represents a seven-year period. The average annual spend is approximately $4.6 million. Without access to historical procurement data for comparable VHF communication and navigation radios, it's difficult to establish a direct benchmark. However, the fact that it's a delivery order under an existing contract suggests it might be part of a larger, ongoing sustainment or upgrade effort. If the Air Force has previously procured similar radios, analyzing those contract values, quantities, and durations would provide a clearer picture of whether this award represents an increase, decrease, or stable level of investment in this technology.
What are the primary risks associated with a seven-year firm-fixed-price contract for specialized aviation electronics?
A seven-year firm-fixed-price (FFP) contract for specialized aviation electronics like VHF radios presents several risks. For the government, the primary risk is potential price escalation if market conditions change significantly over the contract's long duration, although the FFP structure aims to mitigate this by placing the burden on the contractor. There's also a risk of technological obsolescence; if newer, more advanced communication technologies emerge, the government might be locked into using older systems for an extended period. For the contractor (The Boeing Company), the risk lies in underestimating costs, especially for sustainment, maintenance, and potential unforeseen technical challenges over seven years. Unexpected increases in material costs or labor could erode profit margins. Furthermore, ensuring consistent quality and performance over such a long period requires robust quality control processes.
What is The Boeing Company's track record with the Department of Defense for similar communication systems?
The Boeing Company has an extensive and long-standing track record with the Department of Defense (DoD) across a wide array of programs, including complex aviation systems, electronics, and communication equipment. While this specific contract focuses on VHF radios, Boeing is a major defense contractor involved in aircraft manufacturing, defense electronics, and integrated systems. Their history with the DoD includes numerous large-scale contracts for aircraft sustainment, avionics upgrades, and communication suites for various platforms. Generally, Boeing is considered a capable and experienced provider for such requirements. However, like any large contractor, they may have faced specific performance issues or contract disputes on particular programs. A detailed review of their past performance ratings and any significant contract issues related to communication systems would provide a more granular assessment.
How does the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' classification impact the understanding of this contract's scope?
The North American Industry Classification System (NAICS) code '336413 - Other Aircraft Parts and Auxiliary Equipment Manufacturing' provides a broad categorization for this contract. It indicates that the procured items are components or supplementary equipment for aircraft, rather than complete aircraft systems or engines. This classification suggests the VHF radios are likely integrated into existing or new aircraft platforms as essential operational equipment. It implies that the contract likely covers the manufacturing, testing, and potentially initial integration support of these radio units. However, it doesn't specify whether the contract includes long-term maintenance, repair, overhaul (MRO), or extensive lifecycle support, which might fall under different service-oriented NAICS codes. The classification helps frame the contract within the manufacturing segment of the aerospace supply chain.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other 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: $32,182,072
Exercised Options: $32,182,072
Current Obligation: $32,182,072
Actual Outlays: $1,038,944
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $14,092,239
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES 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: 2023-02-17
Potential End Date: 2023-02-17 00:00:00
Last Modified: 2024-08-26
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