DoD's $182.6M Broadband AMSS Support Services Contract with Boeing Raises Questions on Competition and Value

Contract Overview

Contract Amount: $182,637,371 ($182.6M)

Contractor: Boeing Aerospace Operations, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-06-01

End Date: 2018-09-30

Contract Duration: 1,217 days

Daily Burn Rate: $150.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF SLC3S-A BROADBAND AMSS SUPPORT SERVICES

Place of Performance

Location: TUKWILA, KING County, WASHINGTON, 98108

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $182.6 million to BOEING AEROSPACE OPERATIONS, INC. for work described as: IGF::OT::IGF SLC3S-A BROADBAND AMSS SUPPORT SERVICES Key points: 1. The contract awarded to Boeing for $182.6M lacks competition, raising concerns about potential overpricing. 2. Satellite telecommunications sector spending benchmarks are not readily available for direct comparison. 3. The firm fixed-price contract type offers some cost certainty, but the lack of competition is a significant risk. 4. The absence of small business participation is noted, potentially limiting broader economic impact.

Value Assessment

Rating: questionable

The contract's value of $182.6M for broadband AMSS support services is difficult to assess without competitive benchmarks. The lack of competition suggests potential for inflated pricing compared to a more open market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to less favorable terms for the government.

Taxpayer Impact: The lack of competition likely results in higher costs for taxpayers than if the contract had been openly competed.

Public Impact

Taxpayers may be overpaying for essential satellite telecommunications support due to the absence of competitive bidding. The Department of Defense relies on this contract for critical broadband AMSS, highlighting the importance of ensuring value for money. The sole-source nature of the award limits opportunities for other qualified vendors, potentially stifling innovation in the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
No small business participation

Positive Signals

Firm fixed-price contract type
Long-term support for critical infrastructure

Sector Analysis

This contract falls within the Defense sector, specifically for satellite telecommunications. Spending in this area is often characterized by high technical requirements and specialized vendors, but competition is still crucial.

Small Business Impact

The contract data indicates no small business participation. This is a missed opportunity to leverage the capabilities of smaller businesses and promote economic diversity within the defense contracting landscape.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the government is receiving fair and reasonable pricing. Accountability for the decision not to compete is essential.

Related Government Programs

Satellite Telecommunications
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Absence of small business participation
Limited transparency in award justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $182.6 million to BOEING AEROSPACE OPERATIONS, INC.. IGF::OT::IGF SLC3S-A BROADBAND AMSS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is BOEING AEROSPACE OPERATIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $182.6 million.

What is the period of performance?

Start: 2015-06-01. End: 2018-09-30.

What specific factors justified the sole-source award for these broadband AMSS support services, and were alternatives explored?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without detailed documentation, it's difficult to ascertain the specific rationale. Exploring alternatives, even if ultimately deemed unsuitable, is a key aspect of responsible procurement to ensure the government obtains the best value and fosters competition where possible.

How does the cost of this contract compare to similar, albeit potentially smaller or differently scoped, satellite telecommunications support contracts awarded competitively?

Direct comparison is challenging due to the unique nature of AMSS and the sole-source award. However, a review of competitively awarded contracts for satellite bandwidth, ground station operations, or network management services could provide a rough benchmark. Any significant deviation from competitive pricing for comparable services would indicate potential overpayment.

What is the long-term strategy for ensuring competitive sourcing of critical satellite telecommunications support services to avoid future sole-source awards?

The long-term strategy should involve proactive market research to identify potential sources and encourage new entrants. Breaking down large sole-source requirements into smaller, more manageable contract vehicles can also foster competition. Additionally, regular reviews of existing contracts and the evolving technology landscape are necessary to anticipate future needs and plan for competitive procurements.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HC101314R0006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Boeing Company (UEI: 009256819)

Address: 3373 BRECKINRIDGE BLVD, RICHARDSON, TX, 75082

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: $355,185,952

Exercised Options: $182,637,371

Current Obligation: $182,637,371

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline