Boeing awarded $20.7M DHS contract for Tucson, AZ implementation services

Contract Overview

Contract Amount: $20,665,465 ($20.7M)

Contractor: THE Boeing Company

Awarding Agency: Department of Homeland Security

Start Date: 2006-10-13

End Date: 2008-02-15

Contract Duration: 490 days

Daily Burn Rate: $42.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SBINET OFFERORS PROPOSED TASK FOR TUCSON, AZ IMPLEMENTATION.

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85701

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.7 million to THE BOEING COMPANY for work described as: SBINET OFFERORS PROPOSED TASK FOR TUCSON, AZ IMPLEMENTATION. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 490 days indicates a medium-term project. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. The award was a delivery order, implying it's part of a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services'. 6. The contract was awarded to The Boeing Company, a major aerospace and defense contractor.

Value Assessment

Rating: fair

Benchmarking the value of this specific $20.7 million delivery order is challenging without knowing the scope of the underlying contract vehicle and the specific services rendered. However, the award amount itself is substantial, suggesting a significant project. The firm-fixed-price nature of the contract is generally favorable for the government in controlling costs, provided the initial pricing was competitive. Further analysis would require comparing the proposed task order pricing against similar implementations or services within DHS.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 5 offerors suggests a reasonable level of competition for this specific delivery order. A higher number of bidders typically leads to better price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation.

Public Impact

The primary beneficiary is the U.S. Customs and Border Protection (CBP) within the Department of Homeland Security. The contract supports implementation services in Tucson, Arizona. The services likely contribute to border security and management operations. The contract may have implications for the local workforce in Tucson, potentially creating or sustaining jobs in professional, scientific, and technical services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the 'implementation' services makes it difficult to assess the full scope and potential risks.
The contract duration of 490 days (approx. 1.3 years) might be insufficient for complex, long-term system implementations.
Reliance on a single large prime contractor (Boeing) could limit flexibility and potentially increase costs if not managed effectively.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
The contract was awarded to a well-established contractor (Boeing) with significant experience in government contracts.
The delivery order mechanism suggests it aligns with a pre-negotiated contract vehicle, potentially streamlining the acquisition process.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically under NAICS code 541990. This broad category encompasses a wide range of services, including research and development, consulting, and technical support. The market for such services supporting federal agencies, particularly in areas like border security and technology implementation, is substantial. Comparable spending benchmarks would depend heavily on the specific nature of the 'implementation' services provided.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Boeing is a large prime contractor, there is no explicit information provided regarding subcontracting plans or opportunities for small businesses within this specific delivery order. Further investigation into Boeing's subcontracting reports would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Customs and Border Protection (CBP) contracting officers and program managers. As a delivery order under a larger contract vehicle, oversight might also be influenced by the terms of that parent contract. Transparency is limited by the available data; however, contract awards are generally publicly accessible. The Department of Homeland Security has an Inspector General responsible for auditing and investigating programs, which could include oversight of this contract.

Related Government Programs

Department of Homeland Security IT Services
U.S. Customs and Border Protection Technology Modernization
Federal Professional and Technical Services Contracts
Border Security Technology Implementation

Risk Flags

Lack of detailed scope of work
Potential for contractor to reduce quality to meet fixed price
Limited information on small business subcontracting

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.7 million to THE BOEING COMPANY. SBINET OFFERORS PROPOSED TASK FOR TUCSON, AZ IMPLEMENTATION.

Who is the contractor on this award?

The obligated recipient is THE BOEING COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $20.7 million.

What is the period of performance?

Start: 2006-10-13. End: 2008-02-15.

What specific 'implementation' services were provided under this contract?

The provided data indicates the contract was for 'SBINET OFFERORS PROPOSED TASK FOR TUCSON, AZ IMPLEMENTATION.' While the NAICS code 541990 covers 'All Other Professional, Scientific, and Technical Services,' the exact nature of the implementation is not detailed. It could range from system integration, software deployment, infrastructure setup, or process optimization related to border security or internal DHS operations in the Tucson area. Without further documentation, such as the Statement of Work (SOW) for this delivery order, the precise services remain unspecified. This lack of specificity makes it difficult to fully assess the contract's value and performance.

How does the $20.7 million award compare to similar CBP implementation contracts?

Direct comparison of this $20.7 million delivery order to similar CBP implementation contracts is challenging without a precise definition of the 'implementation' services. CBP procures a wide array of services, from IT system development and deployment to physical infrastructure and operational support. If this contract relates to a large-scale IT system rollout, $20.7 million might be a moderate amount for a specific phase or region. However, if it pertains to a more localized or specialized service, it could represent a significant investment. Benchmarking would require identifying contracts with similar NAICS codes, contract types (firm-fixed-price), and project scopes within CBP or DHS.

What is the track record of The Boeing Company in delivering similar services to DHS?

The Boeing Company is a major aerospace and defense contractor with extensive experience serving various U.S. government agencies, including the Department of Homeland Security. Boeing has a long history of delivering complex technological solutions, systems integration, and support services. For DHS, Boeing has been involved in programs related to border security technology, surveillance systems, and aviation security. While specific performance metrics for this particular $20.7 million delivery order are not provided, Boeing's overall track record suggests a capacity to handle large-scale government contracts. However, like any large contractor, past performance can vary across different projects and agencies.

What are the potential risks associated with this firm-fixed-price contract?

While firm-fixed-price (FFP) contracts are generally favored by the government for cost control, they carry inherent risks, primarily for the contractor. For the government, the main risk with an FFP contract is that the contractor may cut corners on quality or scope to protect their profit margin if costs escalate unexpectedly. In this case, if the 'implementation' services are complex or involve unforeseen technical challenges, Boeing might face pressure to reduce the quality of deliverables or limit the scope to stay within the fixed price. Effective government oversight is crucial to mitigate these risks and ensure the contract's objectives are met satisfactorily.

How has DHS spending in 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) trended historically?

Historical spending data for DHS under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' would likely show significant and potentially increasing investment over the years, particularly post-9/11, as the department evolved and expanded its mission. This category is broad and can encompass a wide range of support services essential for agency operations, including research, analysis, consulting, and specialized technical support. Trends would likely reflect evolving security needs, technological advancements, and shifts in federal contracting priorities. Analyzing specific spending patterns would require access to detailed federal procurement databases over multiple fiscal years.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSBP1006R0463

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5301 BOLSA AVE, HUNTINGTON BEACH, CA, 92647

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,665,465

Exercised Options: $20,665,465

Current Obligation: $20,665,465

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSBP1006D01353

IDV Type: IDC

Timeline