Boeing Awarded $42M for CHAMP JCTD Research and Development by Department of Defense
Contract Overview
Contract Amount: $42,031,068 ($42.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2009-04-27
End Date: 2013-04-10
Contract Duration: 1,444 days
Daily Burn Rate: $29.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: CHAMP JCTD
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $42.0 million to THE BOEING COMPANY for work described as: CHAMP JCTD Key points: 1. Significant R&D investment in advanced defense capabilities. 2. Sole awardee, Boeing, suggests specialized expertise or limited market. 3. Cost-plus-fixed-fee contract type carries inherent cost escalation risk. 4. Long duration (1444 days) indicates complex, multi-phase project.
Value Assessment
Rating: fair
The $42M award for a multi-year R&D project is difficult to benchmark without specific technical details. Cost-plus-fixed-fee contracts can lead to higher final costs than fixed-price agreements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bids were likely considered. However, the sole award to Boeing suggests they were the most qualified or competitive bidder for this specific R&D effort.
Taxpayer Impact: Taxpayer funds are supporting advanced defense research. The cost-plus-fixed-fee structure necessitates careful oversight to ensure value for money.
Public Impact
Investment in cutting-edge defense technology. Potential for technological advancements with broad applications. Supports high-skilled jobs in the aerospace and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overruns due to cost-plus-fixed-fee structure.
- Lack of transparency in R&D progress reporting.
- Potential for scope creep over the long contract duration.
Positive Signals
- Awarded through full and open competition.
- Focus on critical defense research and development.
- Experienced contractor with a strong track record.
Sector Analysis
This contract falls under the Research and Development in Physical, Engineering, and Life Sciences sector, specifically NAICS 541712. Defense R&D spending is a significant portion of the federal budget, often characterized by long project timelines and high technical risk.
Small Business Impact
No specific small business participation is indicated in the provided data. Large prime contractors like Boeing often subcontract, but the extent of small business involvement is not detailed here.
Oversight & Accountability
The Department of Defense, through its agencies like the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial for cost-plus-fixed-fee R&D to manage risks and ensure deliverables.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost escalation risk inherent in Cost Plus Fixed Fee contracts.
- Long contract duration increases potential for scope creep and changing requirements.
- Limited visibility into specific R&D outcomes and technical breakthroughs.
- Sole awardee may limit future competitive opportunities if technology is proprietary.
Tags
research-and-development-in-the-physical, department-of-defense, mo, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.0 million to THE BOEING COMPANY. CHAMP JCTD
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 $42.0 million.
What is the period of performance?
Start: 2009-04-27. End: 2013-04-10.
What specific technological advancements were achieved through this $42M investment, and how do they align with current defense priorities?
The CHAMP JCTD (Counter-electronics High-Power Microwave Advanced Missile Project Joint Capability Technology Demonstration) aimed to develop and demonstrate a directed energy weapon system capable of disabling electronic systems. The investment was intended to provide a non-kinetic strike capability against enemy electronics, aligning with evolving electronic warfare and air defense strategies.
Given the cost-plus-fixed-fee structure, what mechanisms were in place to control costs and ensure the government received fair value for the $42M spent?
Cost-plus-fixed-fee contracts require rigorous oversight. The Defense Contract Management Agency (DCMA) would have monitored expenditures, reviewed contractor costs, and ensured adherence to the contract's scope. Performance metrics and milestone reviews would also be critical to assessing progress and justifying continued funding.
How effective was the full and open competition process in selecting Boeing, and did it lead to the best possible outcome for this complex R&D project?
Full and open competition theoretically ensures the best value by allowing all qualified sources to compete. For specialized R&D like CHAMP JCTD, Boeing's selection suggests they possessed unique capabilities or offered the most compelling technical approach and price. However, the long duration and complexity mean effectiveness is best judged by the project's ultimate success and technological impact.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $42,575,402
Exercised Options: $42,575,402
Current Obligation: $42,031,068
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-04-27
Current End Date: 2013-04-10
Potential End Date: 2013-04-10 00:00:00
Last Modified: 2018-08-17
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