Boeing awarded $39.8M for Common Range Integrated Instrumentation System (CRIIS) by the Department of Defense

Contract Overview

Contract Amount: $39,758,847 ($39.8M)

Contractor: THE Boeing Company (0674)

Awarding Agency: Department of Defense

Start Date: 2008-05-01

End Date: 2011-12-31

Contract Duration: 1,339 days

Daily Burn Rate: $29.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: COMMON RANGE INTEGRATED INSTRUMENTATION SYSTEM (CRIIS)

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $39.8 million to THE BOEING COMPANY (0674) for work described as: COMMON RANGE INTEGRATED INSTRUMENTATION SYSTEM (CRIIS) Key points: 1. Contract awarded to a single, large incumbent provider, raising questions about potential price efficiencies. 2. The contract's cost-plus-fixed-fee structure may incentivize cost overruns, requiring close oversight. 3. Performance period spans over three years, indicating a need for sustained monitoring. 4. The system's focus on navigation and guidance suggests critical defense applications. 5. The award falls within the manufacturing sector for navigation and guidance instruments.

Value Assessment

Rating: fair

The contract's value of approximately $39.8 million for the CRIIS system appears to be within a reasonable range for complex integrated instrumentation. However, without specific benchmarks for similar systems or detailed cost breakdowns, a definitive value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) pricing structure, while common for development and integration, can sometimes lead to higher overall costs compared to fixed-price contracts if not managed diligently. Further analysis of the contractor's historical performance on similar projects and the specific technical requirements would be needed to fully benchmark its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of three bids suggests a degree of competition, which is generally positive for price discovery. However, the specific details of the bidding process, including the number of proposals received and the evaluation criteria, are not provided. A competitive process, even with a limited number of bidders, can help ensure that the government receives a fair price and that the chosen contractor offers the best value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

The Department of Defense is the primary beneficiary, receiving critical instrumentation for its operations. The CRIIS system likely supports advanced testing and evaluation of defense systems. Geographic impact is likely concentrated around defense testing ranges and facilities. The contract supports specialized manufacturing and engineering roles within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type can lead to cost escalation if not tightly managed.
Limited public information on specific performance metrics makes independent assessment difficult.
Reliance on a single awardee for a critical system may pose long-term supply chain risks.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The Boeing Company has extensive experience in aerospace and defense systems.
The contract duration indicates a sustained commitment to a necessary capability.

Sector Analysis

The Common Range Integrated Instrumentation System (CRIIS) falls within the broader aerospace and defense manufacturing sector, specifically focusing on navigation, guidance, and control systems. This sector is characterized by high technological complexity, significant R&D investment, and stringent quality requirements. The market is dominated by a few large, established players like The Boeing Company. Spending in this area is driven by national security needs and the continuous evolution of military technology. Comparable spending benchmarks would typically involve other large-scale defense system integration contracts.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, The Boeing Company, is a large business. There is no explicit information provided regarding subcontracting plans or goals for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though large prime contractors often engage small businesses for specialized components or services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contract management agencies, such as the Defense Contract Management Agency (DCMA). The cost-plus-fixed-fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Performance monitoring would involve tracking progress against technical milestones and delivery schedules. Transparency is generally limited for defense contracts due to security considerations, but Inspector General reports and contract databases provide some level of accountability.

Related Government Programs

Defense Instrumentation Systems
Aerospace Manufacturing
Navigation and Guidance Systems
Test and Evaluation Support Systems

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
Limited public data on specific performance metrics hinders independent assessment.
Potential for contractor lock-in due to system complexity and incumbent status.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.8 million to THE BOEING COMPANY (0674). COMMON RANGE INTEGRATED INSTRUMENTATION SYSTEM (CRIIS)

Who is the contractor on this award?

The obligated recipient is THE BOEING COMPANY (0674).

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $39.8 million.

What is the period of performance?

Start: 2008-05-01. End: 2011-12-31.

What is the historical spending trend for the Common Range Integrated Instrumentation System (CRIIS) or similar systems awarded to The Boeing Company?

Historical spending data for the CRIIS program specifically is not detailed in the provided information. However, The Boeing Company is a major defense contractor with a long history of large-scale system integration and manufacturing contracts. Analyzing past awards for similar complex instrumentation or integrated systems to Boeing, particularly within the Department of Defense, would reveal spending patterns. Typically, such programs involve multi-year commitments with annual expenditures fluctuating based on program phase (e.g., development, production, sustainment). Without access to a comprehensive contract database or specific program history, it's difficult to provide precise historical spending figures for CRIIS. However, the current award of approximately $39.8 million suggests a significant, but not unprecedented, investment for such a system.

How does the pricing structure (Cost Plus Fixed Fee) of this contract compare to industry standards for similar defense instrumentation systems?

The Cost Plus Fixed Fee (CPFF) pricing structure is common in defense contracts, especially for research, development, and complex system integration where the final costs are difficult to predict upfront. For instrumentation systems like CRIIS, where innovation and adaptation may be required, CPFF allows the contractor to recover incurred costs plus a predetermined fixed fee. Industry standards often see a mix of pricing structures. Fixed-price contracts are preferred when requirements are well-defined to incentivize cost control. However, for novel or evolving systems, CPFF or other cost-reimbursement types are often necessary. The 'fairness' of the fee depends on negotiation, the contractor's risk, and the complexity of the work. Benchmarking requires comparing the fee percentage and total cost against similar CPFF contracts for comparable systems, considering factors like technical risk and program duration.

What are the key performance indicators (KPIs) used to measure the success of the CRIIS contract, and how has Boeing performed against them historically?

Specific Key Performance Indicators (KPIs) for the CRIIS contract are not publicly disclosed in the provided data. Typically, for such defense instrumentation systems, KPIs would likely include metrics related to system accuracy, reliability, availability, data processing speed, integration capabilities with other platforms, and adherence to delivery schedules. Performance against these KPIs is usually monitored by the contracting agency (Department of Defense, via DCMA). Historical performance data for The Boeing Company on this specific contract is not available in this summary. However, Boeing's overall track record as a major defense contractor suggests a capacity to meet complex technical requirements, though like any large entity, they may have faced challenges on specific programs. A thorough review would require access to contract performance reports and award fee determinations.

What is the potential impact of this contract on the broader defense instrumentation market and competition?

This contract, awarded to a major incumbent like The Boeing Company, reinforces their position in the defense instrumentation market, particularly for integrated systems. While awarded under full and open competition, the award to a single large entity can consolidate market share. The impact on broader competition depends on the nature of the system and potential for future upgrades or replacements. If CRIIS is a foundational system, it may create barriers to entry for smaller, innovative firms seeking to compete on future iterations or related technologies. However, it also signifies a substantial investment in this technological area, potentially stimulating R&D and subcontracting opportunities within the defense industrial base, which could indirectly benefit other players.

Are there any identified risks associated with The Boeing Company's performance on this contract, such as past performance issues or financial stability concerns?

The provided data does not contain specific risk flags or past performance issues related to The Boeing Company for this particular CRIIS contract. As a major, established defense contractor, Boeing generally possesses significant resources and experience. However, large defense programs inherently carry risks, including potential cost overruns, schedule delays, and technical challenges. Without access to detailed contractor performance evaluations, past performance databases (like CPARS), or financial health reports specific to this contract or program area, a comprehensive risk assessment regarding Boeing's performance is not possible. Standard due diligence for such contracts would involve reviewing their history on similar projects and their overall financial stability.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Boeing Company (UEI: 009256819)

Address: 6200 J S MCDONNELL BLVD, SAINT LOUIS, MO, 63134

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $41,302,623

Exercised Options: $40,511,581

Current Obligation: $39,758,847

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline