DoD's $21.3M R&D contract with Boeing for advanced aerospace research shows strong competition and positive signals

Contract Overview

Contract Amount: $21,301,661 ($21.3M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2019-04-12

End Date: 2025-09-26

Contract Duration: 2,359 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: GENESIS

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $21.3 million to THE BOEING COMPANY for work described as: GENESIS Key points: 1. Contract awarded through full and open competition, indicating a robust marketplace. 2. Boeing's extensive experience in aerospace R&D suggests a capable contractor. 3. The contract's duration and cost-plus-fixed-fee structure warrant close performance monitoring. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical sector for national security. 5. The contract is a delivery order under a larger IDIQ, suggesting a framework for ongoing needs. 6. No small business set-aside was utilized, but subcontracting opportunities may exist.

Value Assessment

Rating: good

The contract's value of $21.3 million for R&D services appears reasonable within the context of advanced aerospace research. Benchmarking against similar large-scale R&D contracts awarded by the Department of Defense would provide a more precise value-for-money assessment. The cost-plus-fixed-fee (CPFF) pricing structure allows for flexibility in research but necessitates diligent oversight to ensure costs remain controlled and the fixed fee is justified by the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of a competitive bidding process is generally favorable for price discovery and ensuring the government receives the best value. The specific number of bidders is not provided, but the designation implies a healthy level of market interest and capability.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, which benefits taxpayers by potentially lowering the overall cost of the research and development services procured.

Public Impact

The primary beneficiary is the Department of Defense, which will receive advanced research outcomes to enhance aerospace capabilities. Services delivered include research and development in physical, engineering, and life sciences, focusing on advanced aerospace technologies. The geographic impact is primarily centered around the contractor's facilities, with potential for broader national security implications. Workforce implications include highly skilled researchers, engineers, and technicians employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts require vigilant oversight to prevent cost overruns.
The long duration of the contract (over 2 years) necessitates sustained performance monitoring.
Lack of specific performance metrics in the provided data makes outcome assessment challenging.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
Boeing is a well-established aerospace contractor with a strong track record in R&D.
The contract supports critical research and development for national security.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, encompassing advancements in materials, propulsion, avionics, and other technologies that underpin modern military capabilities. The market for aerospace R&D is characterized by high barriers to entry, significant investment, and a limited number of highly specialized contractors, such as Boeing, which possess the necessary expertise and infrastructure. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts within the DoD for similar technological domains.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale R&D effort with a major prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, the extent of small business subcontracting is not detailed in this summary. The absence of a small business set-aside suggests the primary focus was on securing the most capable large prime contractor for this specialized research.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee (CPFF) contract, including milestone achievement and adherence to research objectives. Transparency is facilitated through contract databases like FPDS, though detailed research progress reports are often considered sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Advanced Aerospace Research Programs
Department of Defense Research and Development
Air Force Science and Technology Investments
Aerospace Technology Development Contracts

Risk Flags

Cost Overruns Risk (CPFF)
Technical Feasibility Risk (R&D)
Long Duration Project Management Risk
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.3 million to THE BOEING COMPANY. GENESIS

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 $21.3 million.

What is the period of performance?

Start: 2019-04-12. End: 2025-09-26.

What is Boeing's track record with similar R&D contracts awarded by the Department of Defense?

Boeing has a long and extensive history of performing complex Research and Development (R&D) contracts for the Department of Defense (DoD) across various domains, including aerospace, defense systems, and advanced technologies. They are a prime contractor on numerous large-scale programs involving aircraft development, missile systems, and space exploration technologies. Their track record includes both successes and challenges, as is common with R&D work, which inherently involves uncertainty and innovation. Specific performance metrics for past contracts would require detailed analysis of contract databases and performance reports, but generally, Boeing is considered a capable and experienced R&D performer within the defense industrial base. Their ability to secure significant R&D funding from the DoD underscores their perceived expertise and capacity to deliver on challenging technical requirements.

How does the value of this contract compare to other R&D contracts in the aerospace sector?

The $21.3 million value for this specific R&D contract is moderate within the broader landscape of aerospace R&D, especially when considering the multi-billion dollar programs often undertaken by major defense contractors. However, for a single delivery order under an IDIQ, it represents a significant investment. To provide a precise comparison, one would need to benchmark it against other R&D contracts of similar scope (e.g., specific technological focus, duration, and phase of research) awarded by the DoD or other federal agencies to companies like Lockheed Martin, Northrop Grumman, or Raytheon. The cost-plus-fixed-fee (CPFF) structure is common for R&D where exact costs are difficult to predict, but it necessitates careful oversight to ensure value. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code (541712) encompasses a wide range of activities, making direct comparisons challenging without deeper insight into the specific research objectives.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risks associated with this Cost Plus Fixed Fee (CPFF) contract revolve around cost control and performance management. For the government, the risk is that the contractor may incur higher-than-anticipated costs, even though the fee is fixed. While CPFF contracts are designed to incentivize efficiency, there's a potential for scope creep or less rigorous cost management if oversight is not robust. The contractor bears the risk of cost overruns if actual costs exceed the estimated costs, but they are guaranteed a fixed profit (fee). For R&D, another significant risk is technical feasibility and achieving the desired outcomes within the projected timeline and budget. The inherent uncertainty in research means that breakthroughs are not guaranteed, and the project could encounter unforeseen technical hurdles. Effective risk mitigation requires strong program management, clear communication, and diligent monitoring of expenditures and progress against milestones.

What does the contract duration of 2359 days imply for program effectiveness?

A contract duration of 2359 days (approximately 6.5 years) for an R&D project indicates a long-term commitment to developing potentially complex technologies or conducting extensive research. This extended timeline suggests that the research objectives are ambitious and may require iterative development, testing, and refinement. For program effectiveness, a longer duration can allow for deeper exploration of scientific principles, more thorough testing of prototypes, and adaptation to evolving requirements or technological advancements. However, it also increases the risk of obsolescence if the technology landscape shifts rapidly or if project management falters over such an extended period. Effective management, clear communication channels, and regular reviews are crucial to maintain focus and ensure the program remains aligned with strategic goals throughout its lifecycle.

How does this contract fit into the broader spending patterns for aerospace R&D within the Department of Defense?

This $21.3 million contract represents a component of the Department of Defense's (DoD) overall investment in aerospace R&D, which typically amounts to billions of dollars annually. The DoD prioritizes R&D to maintain technological superiority and address emerging threats. Contracts like this, awarded under full and open competition to established players like Boeing, are indicative of the DoD's strategy to leverage industry expertise for critical advancements. Spending patterns in this area are influenced by national security priorities, technological trends (e.g., AI, hypersonics, stealth), and budget allocations. This specific contract likely supports a niche but important area within the broader aerospace portfolio, contributing to the development of next-generation capabilities that could range from advanced materials to novel aircraft designs or communication systems.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 325 J S MCDONNELL BLVD, HAZELWOOD, MO, 63042

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: $24,175,812

Exercised Options: $24,175,812

Current Obligation: $21,301,661

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $15,619,709

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865017D2401

IDV Type: IDC

Timeline