DoD Awards Boeing $16.3M for Common Tactical Edge Network R&D

Contract Overview

Contract Amount: $16,278,121 ($16.3M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2022-07-11

End Date: 2026-02-20

Contract Duration: 1,320 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COMMON TACTICAL EDGE NETWORK

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $16.3 million to THE BOEING COMPANY for work described as: COMMON TACTICAL EDGE NETWORK Key points: 1. Boeing secured a significant R&D contract for a critical defense network. 2. The contract value is substantial, indicating a complex and important project. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The R&D focus in physical and engineering sciences points to advanced technological development.

Value Assessment

Rating: good

The contract value of $16.3 million for R&D appears reasonable given the scope of developing a tactical network. Benchmarking against similar large-scale defense R&D projects would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The use of a delivery order under a larger contract structure suggests a phased approach to acquisition.

Taxpayer Impact: Taxpayer funds are being used for advanced defense technology development, aiming to enhance national security capabilities.

Public Impact

Enhances battlefield communication and data sharing capabilities for the Air Force. Supports the development of cutting-edge technology for military operations. Potential for broader application in other defense branches or allied nations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in long-term R&D projects.
  • Dependence on a single contractor (Boeing) for critical network development.
  • Ensuring interoperability with existing and future defense systems.

Positive Signals

  • Awarded through full and open competition.
  • Focus on critical R&D for national security.
  • Contract awarded to a reputable defense contractor.

Sector Analysis

This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Defense R&D spending is a significant portion of the federal budget, often focused on maintaining technological superiority.

Small Business Impact

The prime contractor is The Boeing Company, a large aerospace firm. There is no explicit mention of small business participation in this specific delivery order, which is common for large prime contracts.

Oversight & Accountability

The Department of the Air Force is responsible for oversight. The contract's duration and phased nature suggest ongoing monitoring and performance reviews will be crucial for accountability.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Technological obsolescence risk.
  • Integration challenges with legacy systems.
  • Potential for scope creep in R&D.
  • Contractor performance risk.
  • Cybersecurity vulnerabilities.

Tags

research-and-development-in-the-physical, department-of-defense, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.3 million to THE BOEING COMPANY. COMMON TACTICAL EDGE NETWORK

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 $16.3 million.

What is the period of performance?

Start: 2022-07-11. End: 2026-02-20.

What specific technological advancements does the Common Tactical Edge Network aim to achieve, and how will these directly impact operational effectiveness?

The Common Tactical Edge Network likely aims to improve real-time data dissemination, enhance situational awareness, and enable more agile command and control on the battlefield. These advancements are expected to directly impact operational effectiveness by providing warfighters with faster, more reliable information, leading to better-informed decisions and improved mission outcomes in complex tactical environments.

What are the key performance indicators (KPIs) being used to measure the success of this R&D effort, and how will they be tracked?

Key performance indicators would likely include metrics related to network speed, reliability, security, bandwidth, latency, and successful integration with existing platforms. These KPIs would be tracked through rigorous testing, simulations, and operational assessments conducted by the Department of the Air Force throughout the contract duration.

How does the pricing structure (firm fixed price) align with the inherent uncertainties of research and development, and what mechanisms are in place to manage potential cost escalations?

A firm fixed price (FFP) contract for R&D can be challenging due to inherent uncertainties. While FFP provides cost certainty for the government, it places risk on the contractor. Mechanisms to manage potential cost escalations might include detailed scope definitions, phased development with clear milestones, and robust change control processes to limit scope creep.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5301 BOLSA AVE, HUNTINGTON BEACH, CA, 92647

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: $84,069,264

Exercised Options: $18,405,514

Current Obligation: $16,278,121

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA872618D0006

IDV Type: IDC

Timeline

Start Date: 2022-07-11

Current End Date: 2026-02-20

Potential End Date: 2026-02-20 00:00:00

Last Modified: 2025-12-19

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