Boeing awarded $42.2M for HYFLY2 R&D, focusing on advanced propulsion systems
Contract Overview
Contract Amount: $42,247,314 ($42.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-05-17
End Date: 2024-12-27
Contract Duration: 1,320 days
Daily Burn Rate: $32.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: HYFLY2
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $42.2 million to THE BOEING COMPANY for work described as: HYFLY2 Key points: 1. Contract value represents a significant investment in next-generation aerospace technology. 2. The R&D nature suggests potential for high innovation but also inherent risks. 3. Competition was full and open, indicating a potentially competitive pricing environment. 4. The contract duration spans over three years, allowing for substantial development. 5. Performance is tied to a Cost Plus Fixed Fee structure, incentivizing cost control. 6. This award falls within the broader category of defense research and development.
Value Assessment
Rating: good
The contract value of $42.2 million for HYFLY2 R&D appears reasonable given the scope of advanced propulsion research. Benchmarking against similar R&D contracts in aerospace is challenging due to the unique nature of cutting-edge technology development. However, the Cost Plus Fixed Fee (CPFF) structure, while common for R&D, requires careful monitoring to ensure cost efficiency. The fixed fee component provides some incentive for the contractor to manage costs effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple capable contractors had the opportunity to bid. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government. The specific number of bidders is not provided, but the method of competition indicates a robust process.
Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that can drive down costs and encourage innovation.
Public Impact
The primary beneficiaries are the Department of the Air Force and potentially future military aviation capabilities. The contract will deliver advancements in physical, engineering, and life sciences research, specifically in advanced propulsion. The geographic impact is primarily centered around the contractor's facilities in Missouri. Workforce implications include specialized engineering and research roles, contributing to the high-tech aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- R&D contracts inherently carry risk of technical challenges and cost overruns.
- The CPFF structure requires diligent oversight to manage costs effectively.
- The long duration could lead to scope creep if not managed tightly.
Positive Signals
- Full and open competition suggests a potentially well-vetted and competitive award.
- The focus on advanced propulsion aligns with strategic defense modernization goals.
- The fixed fee component in the CPFF contract provides some cost control incentive.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The aerospace R&D market is characterized by high innovation, significant capital investment, and long development cycles. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature of advanced propulsion, but significant government investment in this area is common for maintaining technological superiority.
Small Business Impact
There is no indication of a small business set-aside for this contract, nor are there explicit subcontracting requirements mentioned in the provided data. The focus on advanced R&D by a large prime contractor like Boeing suggests that the primary work will likely be performed in-house or with large subcontractors, potentially limiting direct opportunities for small businesses unless they are part of Boeing's established supply chain.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Air Force contracting and technical officers. Accountability measures will be tied to the achievement of research milestones and adherence to the contract's fixed fee. Transparency is generally maintained through contract reporting requirements, though specific details of the R&D progress may be sensitive.
Related Government Programs
- Advanced Propulsion Research Programs
- Aerospace Technology Development
- Department of Defense Research Contracts
- Air Force Science and Technology Investments
Risk Flags
- Potential for cost overruns due to R&D uncertainty
- Technical feasibility risks inherent in advanced research
- Need for rigorous government oversight of CPFF contract
Tags
research-and-development, department-of-defense, air-force, missouri, cost-plus-fixed-fee, full-and-open-competition, delivery-order, aerospace, propulsion-systems, advanced-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.2 million to THE BOEING COMPANY. HYFLY2
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 $42.2 million.
What is the period of performance?
Start: 2021-05-17. End: 2024-12-27.
What is the specific technological objective of the HYFLY2 program?
The HYFLY2 program, awarded to The Boeing Company, is focused on advancing propulsion technologies for future aerospace applications. While the provided data does not detail the specific technological objectives, such programs typically aim to develop more efficient, powerful, or environmentally friendly propulsion systems. This could involve research into novel engine designs, advanced materials for engine components, or new fuel combustion techniques. The 'HYFLY' designation often relates to hypersonic or high-speed flight, suggesting a focus on capabilities beyond current conventional aircraft.
How does the Cost Plus Fixed Fee (CPFF) structure influence contractor behavior and government oversight?
The Cost Plus Fixed Fee (CPFF) contract structure is common for research and development efforts where the final costs are uncertain. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This structure incentivizes the contractor to complete the work but provides less direct incentive for cost savings compared to fixed-price contracts. For the government, it necessitates robust oversight to ensure that costs are reasonable and allowable, and that the fixed fee remains appropriate for the scope of work. The government bears the majority of the cost risk.
What are the potential risks associated with a multi-year R&D contract like HYFLY2?
Multi-year R&D contracts, such as HYFLY2, carry several inherent risks. Technical risks include the possibility that the research may not yield the desired technological advancements or that unforeseen scientific challenges arise, potentially delaying or halting progress. Cost risks are also significant, as R&D is inherently unpredictable, and costs could exceed initial estimates, even with a CPFF structure. Programmatic risks involve potential changes in government priorities, budget fluctuations, or the emergence of superior alternative technologies during the contract's duration. Effective risk management, including regular reviews and adaptive planning, is crucial.
Can the 'Research and Development in the Physical, Engineering, and Life Sciences' classification provide insight into the contract's specific focus?
Yes, the NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' provides a broad classification for the HYFLY2 contract. This indicates that the research is grounded in scientific principles and engineering methodologies, likely involving experimentation, analysis, and the development of new processes or products. The exclusion of nanotechnology and biotechnology suggests the focus is on more traditional engineering disciplines related to physics and mechanics, such as materials science, thermodynamics, fluid dynamics, and structural engineering, all relevant to advanced propulsion systems.
What does the 'Delivery Order' (AW) status imply about the contract's execution?
The 'Delivery Order' (AW) status indicates that this contract is likely a task order or delivery order issued under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a basic ordering agreement. This means that the $42.2 million represents the value of this specific order for services or supplies, rather than the total potential value of a parent contract. Delivery orders are common for phased R&D projects or when specific deliverables are required over time. It implies a structured approach to acquiring the research and development services, with specific milestones and delivery schedules tied to this order.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
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: $43,011,828
Exercised Options: $43,011,828
Current Obligation: $42,247,314
Actual Outlays: $493,146
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $6,466,148
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA865019D2055
IDV Type: IDC
Timeline
Start Date: 2021-05-17
Current End Date: 2024-12-27
Potential End Date: 2024-12-27 00:00:00
Last Modified: 2024-08-05
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