Boeing Awarded $36.4M DARPA Contract for R&D, Not Competed
Contract Overview
Contract Amount: $36,360,641 ($36.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2016-09-16
End Date: 2022-02-28
Contract Duration: 1,991 days
Daily Burn Rate: $18.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: IGF::OT::IGF - DARPA RESEARCH PROJECT.
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
Department of Defense obligated $36.4 million to THE BOEING COMPANY for work described as: IGF::OT::IGF - DARPA RESEARCH PROJECT. Key points: 1. Significant R&D investment by DARPA in advanced physical sciences. 2. Sole-source award to Boeing raises questions about competition and price discovery. 3. Long contract duration (1991 days) suggests complex, multi-phase research. 4. Potential for high taxpayer impact due to cost-plus contract type.
Value Assessment
Rating: questionable
The contract's cost-plus incentive fee structure allows for cost reimbursement plus a fee tied to performance. Without competitive bidding, it's difficult to assess if the $36.4M represents a fair market price for the R&D services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This limits price discovery mechanisms and may lead to higher costs than if multiple vendors had bid.
Taxpayer Impact: The lack of competition and cost-plus nature of the contract could result in a higher overall cost to taxpayers for the research performed.
Public Impact
Taxpayers fund advanced research with potential for significant technological breakthroughs. The award to a single, large contractor may limit opportunities for smaller, innovative firms. Transparency in R&D spending is crucial for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of small business participation indicated
Positive Signals
- Investment in critical R&D
- Award to a major defense contractor
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Defense R&D spending is a significant portion of federal outlays, with DARPA known for funding high-risk, high-reward projects.
Small Business Impact
The data indicates no specific set-aside for small businesses (sb: false). This sole-source award to a large prime contractor like Boeing likely means limited direct opportunities for small businesses on this specific contract.
Oversight & Accountability
The contract's sole-source nature warrants scrutiny from oversight bodies to ensure the research objectives are met efficiently and at a reasonable cost, despite the absence of competitive pressure.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Advanced Research Projects Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Cost-plus contract type can lead to cost overruns.
- Long contract duration may indicate scope creep or inefficiency.
- No indication of small business participation.
- Limited transparency on specific R&D outcomes.
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.4 million to THE BOEING COMPANY. IGF::OT::IGF - DARPA RESEARCH PROJECT.
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 Advanced Research Projects Agency).
What is the total obligated amount?
The obligated amount is $36.4 million.
What is the period of performance?
Start: 2016-09-16. End: 2022-02-28.
What specific technological advancements are expected from this $36.4M DARPA research project, and how will their value be measured?
The specific technological advancements are not detailed in the provided data. DARPA projects typically aim for breakthroughs in areas like advanced materials, AI, or novel propulsion systems. Value measurement would likely involve milestone achievements, prototype development, and potential for future applications, assessed against the project's defined objectives and performance metrics.
What is the justification for awarding this contract on a sole-source basis to The Boeing Company, and what risks does this pose?
The justification for a sole-source award is not provided but could stem from unique capabilities, proprietary technology, or urgent national security needs possessed solely by Boeing. Risks include potentially inflated costs due to lack of competition, reduced innovation incentives, and the possibility that alternative solutions from other vendors were overlooked.
How does the cost-plus incentive fee structure ensure effective use of taxpayer funds for this long-term R&D effort?
The cost-plus incentive fee structure aims to align contractor and government interests by allowing cost reimbursement plus a fee that increases if cost targets are met or exceeded, and decreases if they are missed. For long-term R&D, this can incentivize efficiency, but effectiveness hinges on well-defined targets and robust government oversight to prevent cost overruns and ensure research progress.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 5301 BOLSA AVE, HUNTINGTON BEACH, CA, 92647
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: $40,927,171
Exercised Options: $37,534,642
Current Obligation: $36,360,641
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $335,683
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-09-16
Current End Date: 2022-02-28
Potential End Date: 2022-02-28 00:00:00
Last Modified: 2025-04-22
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)