DHS Awards Boeing $31M for O&M Services Amidst Full and Open Competition
Contract Overview
Contract Amount: $30,989,251 ($31.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Homeland Security
Start Date: 2011-07-01
End Date: 2013-03-16
Contract Duration: 624 days
Daily Burn Rate: $49.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIXED PRICE INCENTIVE
Sector: Other
Official Description: OPERATIONS AND MAINTENANCE TASK ORDER
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $31.0 million to THE BOEING COMPANY for work described as: OPERATIONS AND MAINTENANCE TASK ORDER Key points: 1. Significant contract value of $30.99 million awarded to a major defense contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is for 'All Other Professional, Scientific, and Technical Services,' a broad category. 4. Fixed Price Incentive contract type introduces performance-based cost sharing. 5. The contract duration is substantial at 624 days.
Value Assessment
Rating: good
The contract value of $30.99 million for professional, scientific, and technical services appears reasonable given the duration and the contractor's expertise. Benchmarking against similar large-scale O&M contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition indicates that multiple vendors had the opportunity to bid, which typically drives better pricing and value. The fixed-price incentive structure further encourages cost efficiency from the contractor.
Taxpayer Impact: The competitive bidding process is expected to have yielded a fair price, maximizing taxpayer value for the services rendered.
Public Impact
Ensures continued operational support for critical U.S. Customs and Border Protection functions. Supports national security by maintaining essential systems and infrastructure. The award to a large, established contractor may impact opportunities for smaller, specialized firms. The fixed-price incentive contract type aims to control costs while ensuring performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Broad service category could mask specific cost drivers.
- Fixed Price Incentive contracts can be complex to manage.
- Lack of small business participation noted.
Positive Signals
- Full and open competition utilized.
- Award to a reputable contractor.
- Clear contract duration and start/end dates.
Sector Analysis
This contract falls under professional, scientific, and technical services, a broad category often associated with IT, engineering, and specialized support. Spending in this sector can vary widely, but large O&M contracts like this are common for agencies with complex operational needs.
Small Business Impact
The contract data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the contract was awarded to a large business prime contractor, potentially limiting subcontracting opportunities for small businesses.
Oversight & Accountability
The use of full and open competition and a fixed-price incentive contract type suggests a structured approach to procurement and cost control. Further oversight would focus on performance metrics and adherence to the incentive clauses.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Broad service category definition.
- Potential for vendor lock-in.
- Lack of small business participation.
- Complexity of Fixed Price Incentive contracts.
Tags
all-other-professional-scientific-and-te, department-of-homeland-security, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $31.0 million to THE BOEING COMPANY. OPERATIONS AND MAINTENANCE TASK ORDER
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 $31.0 million.
What is the period of performance?
Start: 2011-07-01. End: 2013-03-16.
What specific O&M tasks are covered under 'All Other Professional, Scientific, and Technical Services' for CBP?
The 'All Other Professional, Scientific, and Technical Services' category is broad and can encompass a wide range of activities. For CBP, this could include maintenance of specialized equipment, technical support for IT systems, scientific analysis related to border security, or other professional services not easily classified elsewhere. A detailed review of the PWS (Performance Work Statement) would clarify the exact scope.
How effectively does the Fixed Price Incentive (FPI) structure manage cost overruns given the contract's duration?
The FPI structure aims to incentivize cost savings by sharing any cost underruns between the government and the contractor. However, it also includes a ceiling price. For a 624-day contract, effective management relies on robust baseline cost estimates and diligent monitoring of contractor performance against those estimates. The government's ability to track progress and enforce the incentive clauses is crucial for cost control.
What is the potential impact of awarding such a large contract to a single entity on future competition for similar services?
Awarding a significant contract like this to a single, large entity can sometimes create a barrier to entry for smaller or newer competitors in subsequent procurements. It may also lead to vendor lock-in if the incumbent develops highly specialized knowledge or integrated systems. However, if the initial competition was robust, it suggests the market can support such awards, and future solicitations can be structured to encourage broader participation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 5301 BOLSA AVE, HUNTINGTON BEACH, CA, 47
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $30,989,251
Exercised Options: $30,989,251
Current Obligation: $30,989,251
Parent Contract
Parent Award PIID: HSBP1006D01353
IDV Type: IDC
Timeline
Start Date: 2011-07-01
Current End Date: 2013-03-16
Potential End Date: 2013-03-16 00:00:00
Last Modified: 2012-12-20
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