Boeing Awarded $235M for GPS IIF Launch and On-Orbit Support
Contract Overview
Contract Amount: $234,750,761 ($234.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2012-12-28
End Date: 2017-06-30
Contract Duration: 1,645 days
Daily Burn Rate: $142.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: GPS IIF LAUNCH AND ON-ORBIT SUPPORT FOLLOW-ON CONTRACT
Place of Performance
Location: SEAL BEACH, ORANGE County, CALIFORNIA, 90740
Plain-Language Summary
Department of Defense obligated $234.8 million to THE BOEING COMPANY for work described as: GPS IIF LAUNCH AND ON-ORBIT SUPPORT FOLLOW-ON CONTRACT Key points: 1. Contract awarded to The Boeing Company for GPS IIF satellite support. 2. Significant value of $235 million highlights the importance of space-based navigation systems. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under the Defense sector, specifically Guided Missile and Space Vehicle Manufacturing.
Value Assessment
Rating: good
The contract value of $235 million for a 5-year period appears reasonable given the complexity of launch and on-orbit support for advanced satellite systems. Benchmarking against similar complex aerospace contracts would provide further insight.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to more competitive pricing and better value for the government. The use of a definitive contract with a firm fixed price indicates clear scope and cost expectations.
Taxpayer Impact: Taxpayer funds are being utilized for critical national defense and civilian infrastructure support through the GPS program. Competitive bidding aims to maximize the value of this investment.
Public Impact
Ensures continued operation and support for the Global Positioning System (GPS) IIF satellites. Supports national security, economic activity, and civilian applications reliant on GPS. Contributes to the technological advancement and maintenance of space-based assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen technical issues arise during on-orbit support.
- Dependence on a single contractor for critical satellite operations.
Positive Signals
- Firm fixed price contract helps control costs.
- Full and open competition likely secured competitive pricing.
- Supports a vital national infrastructure system.
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing and support of guided missiles and space vehicles. Spending in this area is critical for national security and technological superiority, with significant government investment typical for complex space programs.
Small Business Impact
The prime contractor is The Boeing Company, a large aerospace firm. There is no specific information provided regarding the subcontracting opportunities for small businesses on this particular contract.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. The firm fixed price contract and definitive award type suggest a structured approach to accountability, but ongoing monitoring is crucial for performance and cost control.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for scope creep if additional support requirements emerge.
- Risk of technical obsolescence of older GPS IIF satellites during the contract period.
- Dependence on a single source for critical launch and on-orbit support.
- Geopolitical factors could impact satellite operations or require adjustments to support.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $234.8 million to THE BOEING COMPANY. GPS IIF LAUNCH AND ON-ORBIT SUPPORT FOLLOW-ON CONTRACT
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 $234.8 million.
What is the period of performance?
Start: 2012-12-28. End: 2017-06-30.
What is the historical performance of Boeing on similar GPS support contracts?
Assessing Boeing's past performance on previous GPS satellite support contracts, including any issues with delivery, cost overruns, or technical challenges, would provide valuable context. Understanding their track record can help predict the likelihood of successful execution and adherence to budget for this follow-on contract.
How does the per-unit cost of on-orbit support compare to previous GPS satellite generations?
Benchmarking the cost of on-orbit support for the GPS IIF satellites against earlier generations (e.g., GPS IIR, GPS IIA) is essential. This comparison would reveal whether costs have increased, decreased, or remained stable, indicating potential efficiencies or escalating expenses in maintaining aging satellite constellations.
What are the specific performance metrics and key performance indicators (KPIs) for this contract?
Understanding the defined performance metrics and KPIs is crucial for evaluating the effectiveness of the contract. These indicators would detail the expected level of service, satellite availability, response times for issues, and other critical factors that determine the success of the on-orbit support provided by Boeing.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: SPACE VEHICLES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2201 SEAL BEACH BLVD, SEAL BEACH, CA, 90740
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: $693,156,421
Exercised Options: $235,399,594
Current Obligation: $234,750,761
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $181,998
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-12-28
Current End Date: 2017-06-30
Potential End Date: 2017-06-30 00:00:00
Last Modified: 2022-08-31
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