Boeing awarded $48.4M for IP Microsoft Internet Relay Chat Acceleration (IMACCS) UCA services by the Air Force

Contract Overview

Contract Amount: $48,442,597 ($48.4M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2017-11-30

End Date: 2021-06-30

Contract Duration: 1,308 days

Daily Burn Rate: $37.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: INTERNET PROTOCOL (IP) MICROSOFT INTERNET RELAY CHAT (MIRC) ACCELERATION (ACC) (IMACCS) UCA

Place of Performance

Location: TUKWILA, KING County, WASHINGTON, 98108

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $48.4 million to THE BOEING COMPANY for work described as: INTERNET PROTOCOL (IP) MICROSOFT INTERNET RELAY CHAT (MIRC) ACCELERATION (ACC) (IMACCS) UCA Key points: 1. Contract value of $48.4M for specialized IT acceleration services. 2. Awarded to a single, large defense contractor, raising questions about competition. 3. Performance period spans over three years, indicating a significant service duration. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 5. The specific nature of 'IMACCS UCA' suggests a niche but critical IT function. 6. Lack of small business participation noted, potentially limiting broader economic impact.

Value Assessment

Rating: fair

The contract's value of $48.4M for IT acceleration services appears substantial. Benchmarking this against similar specialized IT acceleration contracts is difficult without more detailed service descriptions. The Cost Plus Fixed Fee (CPFF) structure, while common for complex or evolving requirements, carries inherent risks of cost escalation compared to fixed-price contracts. Without specific performance metrics or comparisons to industry standards for similar acceleration technologies, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically justified when only one vendor possesses the necessary unique capabilities, technology, or intellectual property. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to a higher price than if multiple firms had competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there is less assurance that the government secured the best possible price for these specialized IT services.

Public Impact

The primary beneficiary is the Department of the Air Force, receiving enhanced IT acceleration capabilities. Services delivered likely improve the performance and efficiency of specific internet relay chat functionalities. The geographic impact is primarily within the Department of Defense's operational environments. Workforce implications are likely concentrated within the IT and technical support roles at the contractor and potentially within the Air Force IT infrastructure management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Cost Plus Fixed Fee contract type introduces risk of cost overruns.
Lack of transparency in specific service deliverables and performance metrics.
Limited information on the specific technology being accelerated and its criticality.
No indication of small business participation or subcontracting opportunities.

Positive Signals

Awarded to a major defense contractor with a known track record.
Addresses a specific IT acceleration need for the Air Force.
Contract duration suggests a sustained requirement for these services.
The contract is for a defined period, allowing for future re-evaluation of needs.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on network acceleration and communication protocols. The market for IT services supporting defense applications is substantial, with significant government spending allocated to maintaining and enhancing operational IT infrastructure. Comparable spending benchmarks would involve other contracts for network optimization, specialized software acceleration, and secure communication systems within the federal government, particularly for defense agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no information provided regarding subcontracting plans for small businesses. This suggests that the primary contractor, Boeing, will likely perform the majority of the work internally, potentially limiting opportunities for small businesses to participate in this specific contract's value chain and impacting the broader small business IT ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, requiring detailed reporting on costs and progress. Transparency is limited by the sole-source nature and the proprietary aspects of the technology. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Air Force Network Modernization Programs
Specialized Software Development Contracts
Secure Communication Systems Procurement

Risk Flags

Sole-source award
Cost-plus contract type
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.4 million to THE BOEING COMPANY. INTERNET PROTOCOL (IP) MICROSOFT INTERNET RELAY CHAT (MIRC) ACCELERATION (ACC) (IMACCS) UCA

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 $48.4 million.

What is the period of performance?

Start: 2017-11-30. End: 2021-06-30.

What is the specific nature of the 'INTERNET PROTOCOL (IP) MICROSOFT INTERNET RELAY CHAT (MIRC) ACCELERATION (ACC) (IMACCS) UCA' and why was it deemed sole-source?

The acronyms suggest a specialized IT service focused on accelerating the performance of Microsoft Internet Relay Chat (MIRC) communications over Internet Protocol (IP) networks, potentially for command and control or operational coordination within the Air Force. The 'UCA' might refer to Unified Communications or a similar system. It was likely deemed sole-source because the underlying technology or the specific optimization techniques are proprietary to Microsoft or developed by a specific entity with unique expertise that only The Boeing Company could leverage or provide, making competition impractical or impossible without significant duplication of effort and cost.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other contract types for similar IT acceleration services?

Cost Plus Fixed Fee (CPFF) contracts are used when the scope of work is not precisely defined, or when there is uncertainty about the costs involved, such as in research and development or complex IT integration projects. For IT acceleration services, fixed-price contracts (like Firm-Fixed-Price or Fixed-Price Incentive) are generally preferred by the government when requirements are well-defined, as they offer better cost certainty and incentivize contractor efficiency. However, if the acceleration technology or its implementation involves significant unknowns or requires flexibility to adapt to evolving network conditions, CPFF might be chosen. The risk with CPFF is that the final cost can exceed initial estimates, as the contractor is reimbursed for allowable costs plus a fixed fee, potentially leading to higher overall spending compared to a fixed-price arrangement.

What are the potential risks associated with a sole-source award for specialized IT services?

The primary risk of a sole-source award is the lack of price competition, which can lead to the government paying a higher price than it might have in a competitive environment. This reduces the government's leverage in negotiating favorable terms and pricing. Additionally, sole-source awards can limit the government's access to innovative solutions from a broader range of vendors and may foster vendor lock-in, making it difficult to switch providers or adopt alternative technologies in the future. There's also a potential for reduced urgency in performance if the contractor perceives less risk of losing future business due to lack of competition.

What performance metrics or benchmarks are typically used to evaluate the success of IT acceleration contracts like this?

Evaluating the success of IT acceleration contracts typically involves measuring improvements in key performance indicators (KPIs) related to speed, latency, throughput, and reliability. For MIRC acceleration, this could include metrics such as reduced message delivery time, increased data transfer rates, lower error rates, and improved uptime. Benchmarks often involve comparing the accelerated performance against baseline performance (before acceleration) or against industry standards for similar communication protocols and network conditions. The effectiveness of the acceleration technology is also assessed by its ability to maintain performance under varying network loads and conditions, and its compatibility with existing IT infrastructure.

Given the $48.4M value, what is the estimated annual spending on this contract?

The contract has a duration of 1308 days, which is approximately 3.58 years (1308 days / 365.25 days/year). To estimate the annual spending, we can divide the total contract value by the duration in years: $48,442,596.92 / 3.58 years ≈ $13,531,451 per year. This suggests an average annual expenditure of roughly $13.5 million for these specialized IT acceleration services.

What is the track record of The Boeing Company in providing specialized IT services to the Department of Defense?

The Boeing Company has a long and extensive track record of providing a wide array of services and products to the Department of Defense (DoD), including complex IT solutions, systems integration, software development, and sustainment services. While primarily known for its aerospace and defense manufacturing capabilities, Boeing also operates a significant defense and space IT division. They have been involved in numerous large-scale government IT contracts, supporting critical defense missions. Their experience encompasses network infrastructure, cybersecurity, data management, and command and control systems, demonstrating a broad capability to handle sophisticated technological requirements for military branches like the Air Force.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7755 E MARGINAL WAY S, SEATTLE, WA, 98108

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

Financial Breakdown

Contract Ceiling: $49,631,395

Exercised Options: $49,631,395

Current Obligation: $48,442,597

Actual Outlays: $1,222,416

Subaward Activity

Number of Subawards: 35

Total Subaward Amount: $4,732,799

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F1962801D0016

IDV Type: IDC

Timeline