Boeing awarded $53.8M for multi-functional information distribution systems, with limited competition
Contract Overview
Contract Amount: $53,831,585 ($53.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-05-27
End Date: 2026-12-31
Contract Duration: 2,409 days
Daily Burn Rate: $22.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MULTI-FUNCTIONAL INFORMATION DISTRIBUTION SYSTEM JOINT TACTICAL RADIO SYSTEM, LOW RATE INITAL PRODUCTION 3 AND 4, FULL RATE PRODUCTION 1 AND 2
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $53.8 million to THE BOEING COMPANY for work described as: MULTI-FUNCTIONAL INFORMATION DISTRIBUTION SYSTEM JOINT TACTICAL RADIO SYSTEM, LOW RATE INITAL PRODUCTION 3 AND 4, FULL RATE PRODUCTION 1 AND 2 Key points: 1. Contract awarded to a single, established provider, raising questions about price competitiveness. 2. Limited competition suggests potential for higher costs compared to a more open bidding process. 3. The contract spans over 6 years, indicating a long-term commitment to this specific system. 4. Focus on production phases suggests mature technology, potentially reducing development risks. 5. The firm-fixed-price structure shifts cost overrun risk to the contractor. 6. This award is part of a larger program for tactical radio systems, indicating ongoing defense needs.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without detailed cost breakdowns or comparisons to similar multi-functional information distribution systems. The firm-fixed-price nature provides some cost certainty for the government, but the lack of competition limits the ability to assess if the price reflects the best possible value. Given the sole-source nature, it's difficult to determine if the pricing is competitive with market rates for comparable systems.
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 is required, or when it's deemed not to be in the government's best interest to compete. The lack of multiple bidders means there was no direct price comparison through a competitive bidding process, potentially impacting price discovery.
Taxpayer Impact: Taxpayers may not be receiving the most cost-effective solution due to the absence of competitive pressure to drive down prices.
Public Impact
The primary beneficiaries are the Department of Defense, specifically the Air Force, receiving critical communication and information distribution capabilities. The contract delivers the Low Rate Initial Production (LRIP) 3 and 4, and Full Rate Production (FRP) 1 and 2 of the Joint Tactical Radio System (JTRS). This system is crucial for enhancing battlefield awareness and command and control for U.S. military operations. The contract supports advanced radio and information distribution technologies, contributing to the modernization of military communication infrastructure. While specific geographic impacts are not detailed, the system's deployment is critical for operational readiness across various theaters of operation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potential cost savings for taxpayers.
- Long contract duration (over 6 years) may lock the government into a specific technology without opportunities for re-evaluation.
- Lack of transparency in the sole-source justification makes it difficult to assess the necessity of this approach.
- Potential for vendor lock-in, making future transitions to alternative systems more complex and costly.
Positive Signals
- Firm-fixed-price contract shifts cost overrun risk to the contractor.
- Award to a known entity (Boeing) suggests a degree of confidence in their capability to deliver.
- The contract supports a critical defense system (JTRS), addressing a known military requirement.
- Production phases indicate the technology is likely mature, reducing technical risks.
Sector Analysis
The defense electronics and communication systems sector is characterized by high R&D costs, long product lifecycles, and significant government procurement. Companies like Boeing are major players, often competing for large, complex contracts. This award for the Joint Tactical Radio System (JTRS) fits within the broader trend of modernizing military communication networks to ensure interoperability and enhanced situational awareness. Comparable spending in this sector often involves substantial investments in avionics, communication suites, and integrated systems, with contract values frequently in the tens to hundreds of millions of dollars.
Small Business Impact
This contract does not appear to include specific small business set-asides, nor is there explicit information regarding subcontracting plans for small businesses. As a sole-source award to a large prime contractor, the direct impact on small businesses is likely minimal unless Boeing voluntarily includes them in its supply chain. Further investigation into Boeing's subcontracting practices would be needed to assess any indirect benefits to the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. The firm-fixed-price structure provides some level of financial oversight by limiting the government's exposure to cost overruns. Transparency regarding the sole-source justification and performance metrics would be key to assessing accountability. Inspector General reviews may occur if specific issues of fraud, waste, or abuse arise.
Related Government Programs
- Joint Tactical Radio System (JTRS)
- Tactical Data Links
- Military Communication Systems
- Defense Information Systems Network (DISN)
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Long contract duration
Tags
defense, department-of-defense, department-of-the-air-force, the-boeing-company, sole-source, firm-fixed-price, aircraft-manufacturing, missouri, multi-functional-information-distribution-system, joint-tactical-radio-system, production, communication-systems
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.8 million to THE BOEING COMPANY. MULTI-FUNCTIONAL INFORMATION DISTRIBUTION SYSTEM JOINT TACTICAL RADIO SYSTEM, LOW RATE INITAL PRODUCTION 3 AND 4, FULL RATE PRODUCTION 1 AND 2
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 $53.8 million.
What is the period of performance?
Start: 2020-05-27. End: 2026-12-31.
What is the historical spending trend for the Joint Tactical Radio System (JTRS) program?
Historical spending data for the Joint Tactical Radio System (JTRS) program reveals a complex and evolving procurement history. Initially conceived as a program to provide a common software-defined radio for all U.S. military services, JTRS faced significant cost overruns and schedule delays, leading to program restructuring and consolidation. Over the years, various components and capabilities have been procured through different contract vehicles, often involving multiple vendors and competitive processes. Total spending has been in the billions of dollars across its lifecycle. The current contract for LRIP 3/4 and FRP 1/2 represents a later stage of the program, focusing on production rather than initial development, suggesting a more stable spending pattern for these specific increments compared to earlier phases.
How does the awarded price compare to similar multi-functional information distribution systems?
Directly comparing the awarded price of $53.8 million for this specific contract to similar multi-functional information distribution systems is challenging due to the proprietary nature of pricing data and the unique specifications of defense systems. However, the sole-source nature of this award limits the ability to benchmark against competitive bids. Generally, systems requiring advanced encryption, secure communication, and integration across multiple platforms can command high prices. Without access to cost breakdowns or data from competitively procured, comparable systems, it's difficult to definitively state whether this price represents excellent, good, or fair value. The lack of competition suggests a potential for a higher price than might be achieved in a fully open market.
What are the primary risks associated with this sole-source contract?
The primary risks associated with this sole-source contract are centered around cost and strategic flexibility. Firstly, the lack of competition means the government may be paying a premium, as there was no competitive pressure to drive down prices. This could lead to suboptimal value for taxpayer money. Secondly, a sole-source award can create vendor lock-in, making it difficult and potentially expensive to switch to alternative solutions or technologies in the future. Thirdly, without a competitive process, there's a reduced incentive for the contractor to innovate aggressively on cost-saving measures. Finally, the justification for the sole-source award itself needs to be robust; if the rationale is weak, it raises concerns about the procurement process and potential missed opportunities for better deals.
What is The Boeing Company's track record with the Joint Tactical Radio System (JTRS) program?
The Boeing Company has a significant track record with the Joint Tactical Radio System (JTRS) program, having been involved in various aspects of its development and production. As a major defense contractor, Boeing has extensive experience in delivering complex communication and avionics systems. Their involvement in JTRS spans multiple contract awards and phases, contributing to the system's evolution. While specific performance details for every contract are not publicly available, Boeing's continued selection for production phases, including this recent award, suggests a satisfactory performance history and capability to meet the program's technical requirements. Their long-standing presence indicates a deep understanding of the JTRS architecture and its operational context within the military.
How effective is the Joint Tactical Radio System (JTRS) in enhancing military operations?
The Joint Tactical Radio System (JTRS) is designed to be a cornerstone of modern military communications, aiming to provide secure, interoperable voice and data transmission across different military branches and platforms. Its effectiveness hinges on its ability to enable seamless communication in complex, dynamic battlefield environments. When fully implemented and operational, JTRS significantly enhances situational awareness by allowing real-time information sharing among units. This improved connectivity facilitates better command and control, faster decision-making, and more coordinated operations. However, the program has faced challenges in achieving full interoperability and cost-effectiveness throughout its history. The current production awards suggest that the system, in its evolved form, is considered effective enough to meet critical operational needs, particularly in providing secure, software-defined radio capabilities.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $54,936,403
Exercised Options: $54,069,760
Current Obligation: $53,831,585
Subaward Activity
Number of Subawards: 30
Total Subaward Amount: $11,236,139
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA863417D2696
IDV Type: IDC
Timeline
Start Date: 2020-05-27
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-11-07
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