DoD awards Boeing $53.3M for Laser Pod R&D, raising questions on value and competition
Contract Overview
Contract Amount: $53,291,481 ($53.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2017-01-03
End Date: 2021-05-15
Contract Duration: 1,593 days
Daily Burn Rate: $33.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF LASER POD RESEARCH AND DEVELOPMENT (LPRD) TO 0001
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $53.3 million to THE BOEING COMPANY for work described as: IGF::OT::IGF LASER POD RESEARCH AND DEVELOPMENT (LPRD) TO 0001 Key points: 1. The contract focuses on R&D in physical sciences, a critical but complex area. 2. Boeing, a major defense contractor, secured this award. 3. The contract's value is significant, warranting scrutiny of its effectiveness. 4. Competition details are limited, impacting price discovery and taxpayer value. 5. The sector is characterized by high innovation and long development cycles.
Value Assessment
Rating: questionable
The $53.3 million award for R&D lacks clear benchmarks for comparison. Without detailed cost breakdowns or comparable contracts, assessing the value for money is difficult. The 'Cost Plus Fixed Fee' structure can incentivize cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as full and open competition, the specific award mechanism (Delivery Order) suggests it might be part of a larger IDIQ or framework. This can limit true competition if not managed carefully, potentially impacting price discovery.
Taxpayer Impact: The significant investment requires robust oversight to ensure taxpayer funds are used efficiently and deliver intended technological advancements.
Public Impact
Advancement in laser pod technology could have dual-use applications, impacting both defense and potentially commercial sectors. Investment in R&D signals a commitment to technological superiority, but the return on investment needs to be monitored. The long duration of the contract (over 4 years) suggests a complex and potentially high-risk research endeavor. Potential for technological breakthroughs could enhance national security capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clear value metrics for R&D.
- Potential for cost creep in CPFF contracts.
- Limited insight into competitive landscape for this specific award.
- Long contract duration increases risk of obsolescence or scope creep.
Positive Signals
- Focus on critical R&D area.
- Award to established defense contractor.
- Potential for technological innovation.
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical sciences. Spending in this area is crucial for innovation but often involves higher risk and longer timelines compared to procurement of existing technologies. Benchmarks are difficult due to the unique nature of R&D.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large R&D contracts are often dominated by major prime contractors, potentially limiting opportunities for smaller, innovative firms unless subcontracting is actively pursued.
Oversight & Accountability
The 'Delivery Order' nature suggests this might be one of multiple orders under a larger contract, requiring oversight of the parent contract as well. The 'Cost Plus Fixed Fee' structure necessitates close monitoring of costs and performance to ensure accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns.
- Lack of specific performance metrics makes value assessment difficult.
- Potential for limited true competition despite 'full and open' designation.
- Long contract duration increases risk.
- No clear indication of small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.3 million to THE BOEING COMPANY. IGF::OT::IGF LASER POD RESEARCH AND DEVELOPMENT (LPRD) TO 0001
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 $53.3 million.
What is the period of performance?
Start: 2017-01-03. End: 2021-05-15.
What specific technological advancements are expected from this $53.3M investment, and how will their success be measured?
The contract aims for advancements in Laser Pod Research and Development (LPRD). Success metrics are likely tied to achieving specific technical performance parameters, such as increased range, accuracy, power efficiency, or new functionalities for the laser pod system. The government will likely monitor progress through regular technical reviews, milestone achievements, and final system demonstrations to ensure the R&D investment yields tangible, measurable improvements in capability.
Given the 'Cost Plus Fixed Fee' structure, what mechanisms are in place to mitigate cost overruns and ensure fair pricing?
Cost Plus Fixed Fee (CPFF) contracts require robust government oversight. Mechanisms include detailed cost monitoring, regular audits of contractor expenditures, and strict adherence to the defined scope of work. The 'fixed fee' component provides some incentive for the contractor to control costs, as the fee is fixed regardless of the final cost. However, the government must actively manage the contract to prevent scope creep and ensure all costs are reasonable, allocable, and allowable.
How does the 'full and open competition' for this delivery order ensure optimal value and innovation compared to other contracting methods?
Full and open competition theoretically allows any qualified source to compete, driving down prices and fostering innovation. However, for a specific delivery order under a potentially pre-existing contract vehicle, the actual breadth of competition might be limited to those on the vehicle. Effective price discovery relies on a competitive environment where multiple bidders submit proposals. The government must ensure the solicitation and evaluation process for this order truly encourages robust competition among eligible entities to maximize taxpayer value.
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: 4
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,291,481
Exercised Options: $53,291,481
Current Obligation: $53,291,481
Actual Outlays: $1,285,022
Subaward Activity
Number of Subawards: 39
Total Subaward Amount: $35,330,458
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA945117D0031
IDV Type: IDC
Timeline
Start Date: 2017-01-03
Current End Date: 2021-05-15
Potential End Date: 2021-05-15 00:00:00
Last Modified: 2021-06-03
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