DoD's $4.44B Boeing Contract for GBI/AUR Program Management Faces Scrutiny Over R&D Spending
Contract Overview
Contract Amount: $4,438,727,468 ($4.4B)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-03-18
End Date: 2025-12-31
Contract Duration: 2,480 days
Daily Burn Rate: $1.8M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: GBI/AUR PROGRAM MANAGEMENT/SYSTEMS ENG
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35801
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $4.44 billion to THE BOEING COMPANY for work described as: GBI/AUR PROGRAM MANAGEMENT/SYSTEMS ENG Key points: 1. The contract's significant value of $4.44 billion raises questions about cost-effectiveness for R&D in Biotechnology. 2. Boeing, a major defense contractor, holds this award, indicating a concentrated market for such specialized services. 3. Potential risks include cost overruns and the effectiveness of research outcomes given the large, long-term investment. 4. The sector is Research and Development in Biotechnology, a critical but complex area for government investment.
Value Assessment
Rating: questionable
The $4.44 billion contract value is substantial for R&D in Biotechnology. Benchmarking against similar, complex research programs is difficult, but the scale suggests a need for rigorous oversight to ensure value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method should theoretically drive competitive pricing. However, the specialized nature of the work and the long duration may limit the number of truly competitive bids over time.
Taxpayer Impact: The significant taxpayer investment necessitates careful monitoring to ensure the program delivers intended technological advancements and national security benefits.
Public Impact
Taxpayers are funding advanced research and development in a critical national security area. The contract supports high-tech jobs within the aerospace and biotechnology sectors. Successful outcomes could lead to advancements in missile defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for R&D
- Long contract duration
- Potential for scope creep in research projects
Positive Signals
- Awarded via full and open competition
- Supports critical national security mission
Sector Analysis
This contract falls within the Research and Development in Biotechnology sector, a high-cost, high-risk area. Spending benchmarks are difficult to establish due to the unique nature of advanced research, but significant government investment is typical for national security applications.
Small Business Impact
The contract is awarded to a large prime contractor, The Boeing Company. There is no explicit information provided regarding small business participation or subcontracting goals within this data, which could be an area for further review.
Oversight & Accountability
The contract's extensive duration and value necessitate robust oversight mechanisms from the Department of Defense and the Missile Defense Agency to ensure performance, cost control, and adherence to research objectives.
Related Government Programs
- Research and Development in Biotechnology (except Nanobiotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- High dollar value for R&D
- Long contract duration (over 6 years)
- Potential for cost growth in complex research
- Limited visibility into specific R&D outcomes
- Reliance on a single large prime contractor
Tags
research-and-development-in-biotechnolog, department-of-defense, al, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $4.44 billion to THE BOEING COMPANY. GBI/AUR PROGRAM MANAGEMENT/SYSTEMS ENG
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $4.44 billion.
What is the period of performance?
Start: 2019-03-18. End: 2025-12-31.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure the $4.44 billion investment yields tangible R&D breakthroughs in biotechnology?
Key performance indicators would likely focus on milestones related to research progress, technological development, system integration, and successful testing of the GBI/AUR program components. Measurement would involve rigorous technical reviews, independent verification and validation, and demonstration of achieved capabilities against predefined requirements. The effectiveness of the $4.44 billion investment hinges on the clear definition and objective assessment of these KPIs.
Given the long-term nature and significant funding, what are the primary risks associated with cost overruns or research inefficiencies, and what mitigation strategies are in place?
Primary risks include unforeseen scientific challenges, evolving technological landscapes, and potential scope creep in research objectives, all leading to cost overruns. Mitigation strategies likely involve robust contract management, phased funding tied to achievable milestones, independent cost estimates, and strong oversight from the Missile Defense Agency. Regular performance reviews and change control processes are crucial to manage risks effectively.
How will the effectiveness of the biotechnology research funded by this contract be evaluated beyond immediate program needs, considering potential broader scientific or commercial applications?
Evaluating broader effectiveness requires a forward-looking approach. This could involve periodic technology transfer assessments, tracking of patents or publications stemming from the research, and engagement with scientific communities to gauge potential spin-off applications. While the primary focus is national security, establishing mechanisms to identify and potentially leverage secondary benefits ensures a more comprehensive return on the taxpayer's investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Biotechnology (except Nanobiotechnology)
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HQ014710R0016
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 499 BOEING BLVD SW, HUNTSVILLE, AL, 35824
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: $5,293,128,779
Exercised Options: $5,018,448,348
Current Obligation: $4,438,727,468
Actual Outlays: $250,777,959
Subaward Activity
Number of Subawards: 945
Total Subaward Amount: $2,492,066,902
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-03-18
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-11-13
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