Boeing awarded $20.2M contract for EGRESS SYSTEM STUDY by the Department of the Air Force

Contract Overview

Contract Amount: $20,221,567 ($20.2M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2022-08-05

End Date: 2026-12-31

Contract Duration: 1,609 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: EGRESS SYSTEM STUDY

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $20.2 million to THE BOEING COMPANY for work described as: EGRESS SYSTEM STUDY Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. Performance period spans over 4 years, indicating a long-term need for the study. 4. The North American Industry Classification System (NAICS) code 336411 points to aircraft manufacturing, aligning with the contractor's expertise. 5. The contract is a delivery order under a larger contract vehicle, implying a structured procurement process. 6. No small business set-aside was noted, which may limit opportunities for smaller firms in this specific award.

Value Assessment

Rating: fair

The contract value of $20.2 million for an egress system study appears reasonable given the duration and the contractor's specialization in aircraft manufacturing. However, without specific benchmarks for similar studies or detailed cost breakdowns, a precise value-for-money assessment is challenging. The Time and Materials pricing structure introduces inherent risk, as costs can escalate if not carefully monitored and controlled by the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the open competition suggests a healthy level of market interest. This approach is generally expected to yield competitive pricing and a wider range of technical solutions.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it maximizes the potential for cost savings through competitive pressure and encourages a broad base of contractors to vie for government work.

Public Impact

The primary beneficiary is the Department of the Air Force, which will receive critical research and analysis for aircraft safety systems. The study will likely contribute to improved safety protocols and design considerations for aircraft egress systems. The geographic impact is primarily within the United States, where the study will be conducted and its findings implemented. Workforce implications may include specialized engineers and researchers within The Boeing Company, contributing to the aerospace sector's knowledge base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently.
Lack of specific competition details (number of bidders) makes it difficult to fully assess the competitive landscape.
The study's scope and deliverables need clear definition to ensure it meets Air Force requirements effectively.

Positive Signals

Awarded through full and open competition, indicating a robust procurement process.
Contractor (The Boeing Company) is a major aerospace manufacturer with relevant expertise.
Long performance period allows for thorough study and analysis.

Sector Analysis

The aerospace and defense sector is characterized by high R&D investment and complex manufacturing processes. Contracts for system studies, like this egress system analysis, are crucial for maintaining technological superiority and safety standards. Spending in this area is often driven by stringent regulatory requirements and the need for continuous innovation. Comparable spending benchmarks for specialized system studies can vary widely based on complexity and duration, but this $20.2 million award falls within a typical range for significant research efforts within the aircraft manufacturing sub-sector.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there information indicating significant subcontracting opportunities for small businesses. The primary contractor, The Boeing Company, is a large aerospace firm. This suggests that the direct impact on the small business ecosystem for this specific award may be limited, though Boeing's broader supply chain could involve smaller enterprises.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Air Force contracting and program management offices. Accountability measures will be tied to the delivery of study milestones and final reports as outlined in the contract. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Safety Systems Research
Aerospace Engineering Services
Defense Research and Development Contracts
Air Force Aircraft Modernization Programs

Risk Flags

Cost Overrun Risk (Time and Materials)
Scope Definition Uncertainty
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.2 million to THE BOEING COMPANY. EGRESS SYSTEM STUDY

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 $20.2 million.

What is the period of performance?

Start: 2022-08-05. End: 2026-12-31.

What is the specific scope and expected outcome of the EGRESS SYSTEM STUDY?

The provided data does not detail the specific scope or expected outcomes of the EGRESS SYSTEM STUDY. However, based on the contractor's industry (Aircraft Manufacturing) and the awarding agency (Department of the Air Force), the study likely focuses on analyzing and potentially improving the systems and procedures related to personnel evacuation from aircraft during emergencies. This could involve evaluating current egress mechanisms, identifying potential failure points, researching new technologies, and recommending design modifications or procedural changes to enhance safety and survivability. The final deliverables would typically include comprehensive reports, data analysis, and recommendations for the Air Force.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar studies?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve, as is common in research and study contracts. Unlike fixed-price contracts, T&M pays the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. While offering flexibility, T&M contracts carry a higher risk of cost overruns for the government compared to firm-fixed-price contracts, as there is less incentive for the contractor to control costs. For studies where the scope is well-defined, a firm-fixed-price contract might offer better cost certainty. However, for exploratory or developmental studies like this egress system analysis, T&M can be appropriate if robust government oversight is in place to monitor labor hours and material costs.

What is The Boeing Company's track record with similar Air Force contracts?

The Boeing Company is a major defense contractor with an extensive history of performing complex contracts for the Department of the Air Force and other military branches. While specific details on past egress system studies are not provided, Boeing has a long-standing expertise in aircraft design, manufacturing, and systems integration. They have been involved in numerous programs related to aircraft safety, performance, and sustainment. Their track record generally includes large-scale, high-value contracts, often involving advanced technologies and critical systems. Performance on these contracts can be reviewed through sources like the Contractor Performance Assessment Reporting System (CPARS), which provides detailed evaluations of contractor performance on past government contracts.

What are the potential risks associated with a $20.2 million study contract awarded under Time and Materials?

The primary risk with a $20.2 million Time and Materials (T&M) contract is cost escalation. Since the contractor is reimbursed for labor hours and materials used, there's a potential for costs to exceed the initial estimate if the project takes longer than anticipated or requires more resources. Without strong government oversight, including detailed monitoring of labor hours, resource allocation, and justification for expenditures, the final cost could significantly surpass the $20.2 million figure. Another risk is scope creep, where the project's objectives may expand beyond the original intent, further driving up costs. Ensuring clear milestones, regular progress reviews, and effective management of the T&M ceiling are crucial to mitigate these risks.

How does this contract's value compare to historical spending on aircraft system studies by the Air Force?

Historical spending on aircraft system studies by the Air Force can vary significantly based on the complexity, scope, and technological advancement of the systems involved. A $20.2 million contract for a specialized study like an egress system analysis, especially one awarded to a prime contractor like Boeing over a multi-year period (2022-2026), is substantial but not necessarily outside the norm for major defense research and development efforts. The Air Force invests billions annually in R&D and system upgrades. To provide a precise comparison, one would need to analyze historical data for similar types of studies (e.g., safety systems, human factors, cockpit design) awarded over comparable timeframes and to similar types of contractors. This specific award represents a significant investment in ensuring the safety and effectiveness of Air Force aircraft egress capabilities.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

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: $22,488,567

Exercised Options: $22,488,567

Current Obligation: $20,221,567

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $13,580,679

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA861718D6219

IDV Type: IDC

Timeline