Boeing Awarded $136M for Missile and Space Systems R&D, Facing Limited Competition
Contract Overview
Contract Amount: $136,072,592 ($136.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2004-01-05
End Date: 2010-12-31
Contract Duration: 2,552 days
Daily Burn Rate: $53.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 200404!000033!5700!CZ46 !SMC/PKG LOS ANGELES AFB !FA880704C0002 !A!N! !N! ! !20040105!20051231!133039797!133039797!009256819!N!THE BOEING COMPANY !5301 BOLSA AVENUE !HUNTINGTON BEA !CA!92647!70686!059!06!SEAL BEACH !ORANGE !CALIFORNIA!+000010330000!N!N!000020800000!AC22!RDTE/MISSILE AND SPACE SYSTEMS-APPLIED RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !166 !NAVSTAR GPS !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!002!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!D!N! ! ! !Y! ! !0001! !
Place of Performance
Location: SEAL BEACH, ORANGE County, CALIFORNIA, 90740
Plain-Language Summary
Department of Defense obligated $136.1 million to THE BOEING COMPANY for work described as: 200404!000033!5700!CZ46 !SMC/PKG LOS ANGELES AFB !FA880704C0002 !A!N! !N! ! !20040105!20051231!133039797!133039797!009256819!N!THE BOEING COMPANY !5301 BOLSA AVENUE !HUNTINGTON BEA !CA!92647!70686!059!06!SEAL BEACH !ORAN… Key points: 1. Significant contract value of $136 million for applied research in missile and space systems. 2. The Boeing Company is the sole awardee, raising questions about competition. 3. Contract duration is substantial at over 6 years, indicating a long-term project. 4. Spending is concentrated in California, a hub for aerospace and defense.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award value is high, but without specific performance metrics or benchmarks, assessing its value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition', but the data indicates only one awardee, The Boeing Company. This suggests that while the opportunity was advertised, only one entity was capable or chose to bid, potentially limiting price discovery.
Taxpayer Impact: The substantial contract value represents a significant allocation of taxpayer funds towards advanced research and development in a critical defense sector.
Public Impact
Taxpayer funds are directed towards advanced missile and space systems research. The contract supports a major defense contractor, The Boeing Company. The long duration suggests a sustained investment in this technology area. Geographic concentration of spending in California may benefit the regional economy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite 'Full and Open' designation.
- Cost Plus Fixed Fee contract type carries inherent cost risk.
- Long contract duration increases exposure to changing technological needs.
Positive Signals
- Supports critical R&D in missile and space systems.
- Awarded to a major, established defense contractor.
- Significant investment in technological advancement.
Sector Analysis
This contract falls within the Research and Development sector, specifically applied research for missile and space systems. The aerospace and defense industry is characterized by high R&D investment and often involves complex, long-term projects with significant government funding.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Given the nature of the work and the prime contractor, it is unlikely that small businesses played a direct role in the prime award, though they may be subcontractors.
Oversight & Accountability
The contract is managed by the Department of Defense through the Defense Contract Management Agency. Oversight would focus on ensuring the contractor meets research objectives and manages costs effectively under the Cost Plus Fixed Fee structure.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Fixed Fee structure.
- Limited competition may have resulted in a suboptimal price.
- Long contract duration increases risk of technological obsolescence.
- Lack of clear performance metrics makes value assessment challenging.
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $136.1 million to THE BOEING COMPANY. 200404!000033!5700!CZ46 !SMC/PKG LOS ANGELES AFB !FA880704C0002 !A!N! !N! ! !20040105!20051231!133039797!133039797!009256819!N!THE BOEING COMPANY !5301 BOLSA AVENUE !HUNTINGTON BEA !CA!92647!70686!059!06!SEAL BEACH !ORANGE !CALIFORNIA!+000010330000!N!N!000020800000!AC22!RDTE/MISSILE AND SPACE SYSTEMS-APPLIED RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !166 !NAVSTAR GPS !541710!E! !3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $136.1 million.
What is the period of performance?
Start: 2004-01-05. End: 2010-12-31.
What specific research objectives are outlined in this contract, and how will their achievement be measured to ensure value for money?
The contract details are not fully provided, but it's for 'RDTE/MISSILE AND SPACE SYSTEMS-APPLIED RESEARCH'. Measuring value would depend on clearly defined milestones, deliverables, and successful technological advancements. Without specific performance metrics, it's difficult to ascertain if the $136 million is yielding optimal results for taxpayer investment.
Given the limited competition, what steps were taken to ensure the government received the best possible price and terms?
While advertised as 'Full and Open Competition', the award to a single entity suggests potential barriers to entry or a lack of other qualified bidders. The government likely relied on pre-negotiated rates or market research to establish a fair price, but the absence of competing bids inherently limits the government's leverage in price negotiation.
How does this applied research contract align with current and future defense needs in missile and space systems?
Applied research in missile and space systems is crucial for maintaining technological superiority. The long duration suggests a strategic investment in areas deemed critical by the Department of Defense. However, the rapidly evolving nature of these fields means continuous reassessment is needed to ensure the research remains relevant and effective.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 5301 BOLSA AVENUE, HUNTINGTON BEA, CA, 92647
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-01-05
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2018-01-18
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