DoD awards Boeing $5.2M for On-Orbit Sustainment Support, a sole-source contract
Contract Overview
Contract Amount: $5,237,035 ($5.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2026-01-01
End Date: 2026-12-31
Contract Duration: 364 days
Daily Burn Rate: $14.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ON-ORBIT SUSTAINMENT SUPPORT
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80908
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $5.2 million to THE BOEING COMPANY for work described as: ON-ORBIT SUSTAINMENT SUPPORT Key points: 1. Contract awarded to The Boeing Company for $5.24M. 2. Focuses on on-orbit sustainment support for the Department of the Air Force. 3. Contract is sole-source, raising potential competition concerns. 4. Spending falls under 'All Other Telecommunications' sector.
Value Assessment
Rating: fair
The contract value of $5.24M for a one-year period appears reasonable for specialized sustainment support. However, without a competitive benchmark, it's difficult to definitively assess pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs compared to a competitive process.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for these sustainment services.
Public Impact
Ensures continued operational capability of critical space assets. Supports the Department of Defense's strategic objectives in space. Potential for increased costs due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for cost overruns without competitive pressure.
- Limited transparency on pricing justification.
Positive Signals
- Ensures critical sustainment support is in place.
- Leverages existing contractor expertise for specialized services.
Sector Analysis
The 'All Other Telecommunications' sector encompasses a wide range of services. Spending benchmarks for on-orbit sustainment are highly specialized and difficult to compare broadly.
Small Business Impact
This contract was awarded to a large business (The Boeing Company) and does not appear to include specific provisions for small business participation.
Oversight & Accountability
Oversight will be crucial to ensure the contractor meets performance requirements and to monitor costs, especially given the sole-source nature of the award.
Related Government Programs
- All Other Telecommunications
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price escalation
- Limited small business involvement
Tags
all-other-telecommunications, department-of-defense, co, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.2 million to THE BOEING COMPANY. ON-ORBIT SUSTAINMENT SUPPORT
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 $5.2 million.
What is the period of performance?
Start: 2026-01-01. End: 2026-12-31.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Agencies must still conduct market research and negotiate to ensure fair and reasonable pricing, often through detailed cost analysis and comparison to historical data or independent government cost estimates.
What are the specific risks associated with relying on a single provider for on-orbit sustainment, and how are these risks being mitigated?
Risks include potential price gouging, lack of innovation, and vendor lock-in. Mitigation strategies involve robust contract management, performance monitoring, clear deliverables, and potentially building in options for future competition or alternative solutions to reduce long-term dependency.
How does this contract contribute to the overall effectiveness and readiness of the Air Force's space assets?
This contract is vital for maintaining the operational status and longevity of critical space assets. Effective sustainment ensures that these assets can perform their intended missions without interruption, directly impacting the Air Force's overall effectiveness and readiness in the space domain.
Industry Classification
NAICS: Information › Other Telecommunications › All Other Telecommunications
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 320 WOOTEN RD, COLORADO SPRINGS, CO, 80916
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $94,354,113
Exercised Options: $23,957,555
Current Obligation: $5,237,035
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA882322D0001
IDV Type: IDC
Timeline
Start Date: 2026-01-01
Current End Date: 2026-12-31
Potential End Date: 2029-12-31 00:00:00
Last Modified: 2025-12-22
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