Boeing awarded $19.2M for IGF Block 1 Maintenance, a task order under a larger contract

Contract Overview

Contract Amount: $19,201,829 ($19.2M)

Contractor: THE Boeing Company

Awarding Agency: Department of Homeland Security

Start Date: 2012-09-17

End Date: 2016-07-31

Contract Duration: 1,413 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: IGF::CT::IGF BLOCK 1 MAINTENANCE TASK ORDER

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.2 million to THE BOEING COMPANY for work described as: IGF::CT::IGF BLOCK 1 MAINTENANCE TASK ORDER Key points: 1. The contract was awarded through full and open competition, suggesting a competitive bidding process. 2. The fixed-price incentive contract type aims to balance cost control with performance incentives. 3. The duration of the task order (1413 days) indicates a significant, long-term service requirement. 4. The task order was issued by U.S. Customs and Border Protection, highlighting its role in border security operations. 5. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services', indicating a broad scope of work. 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 task order is challenging without more detailed cost breakdowns or comparisons to similar maintenance contracts for complex systems. The fixed-price incentive structure suggests an attempt to manage costs, but the final price is subject to performance outcomes. Without insight into the performance metrics and associated incentives, a definitive value-for-money assessment is difficult. However, the award to a large, established contractor like Boeing for specialized maintenance implies a certain level of expected quality and capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a moderate level of competition for this specific requirement. While full and open competition is generally preferred for ensuring fair pricing and access for a wide range of contractors, the actual competitiveness can vary based on the specificity of the requirement and the number of qualified bidders.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions. The fact that multiple bids were received suggests that taxpayer dollars were likely used efficiently in this instance.

Public Impact

This contract directly supports U.S. Customs and Border Protection's operational readiness by ensuring the maintenance of critical systems (IGF Block 1). The services provided are essential for maintaining the functionality and reliability of equipment used in border security operations. The geographic impact is primarily within the operational areas of U.S. Customs and Border Protection, which could span national borders. The workforce implications are likely concentrated within The Boeing Company's technical and maintenance divisions, potentially involving specialized engineers and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess if the incentive structure effectively controlled costs.
The long duration of the task order could lead to scope creep or unforeseen cost increases if not managed diligently.
Reliance on a single large contractor for critical maintenance might pose risks if the contractor faces financial or operational challenges.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified vendors.
The fixed-price incentive contract type is designed to align contractor and government interests in achieving performance goals while managing costs.
The task order is issued to a reputable contractor with extensive experience in aerospace and defense systems.

Sector Analysis

The aerospace and defense sector is characterized by complex, high-value contracts often involving specialized technical services. This contract falls within the professional, scientific, and technical services category, which is a significant segment of the broader defense industrial base. Spending in this area is driven by national security requirements and the need for advanced technological solutions. Comparable spending benchmarks would typically involve other maintenance and support contracts for large-scale government systems, often awarded to prime contractors with deep technical expertise.

Small Business Impact

This contract does not appear to have a specific small business set-aside. The award to The Boeing Company, a large prime contractor, suggests that subcontracting opportunities may exist for small businesses within Boeing's supply chain. However, the extent of these opportunities and the focus on small business participation would depend on Boeing's internal subcontracting plans and the specific nature of the maintenance services required.

Oversight & Accountability

Oversight for this task order would typically fall under the contracting agency, the Department of Homeland Security (specifically U.S. Customs and Border Protection), and potentially the relevant Inspector General's office. Accountability measures would be tied to the performance clauses within the fixed-price incentive contract. Transparency is facilitated by the contract award itself, but detailed operational oversight and performance reviews are internal agency functions.

Related Government Programs

Department of Homeland Security Contracts
U.S. Customs and Border Protection Procurement
Aerospace and Defense Maintenance Contracts
Professional, Scientific, and Technical Services Contracts
Fixed-Price Incentive Contracts

Risk Flags

Long-term contract duration
Fixed-price incentive contract type complexity
Reliance on a single large prime contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.2 million to THE BOEING COMPANY. IGF::CT::IGF BLOCK 1 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 $19.2 million.

What is the period of performance?

Start: 2012-09-17. End: 2016-07-31.

What is the specific nature of the 'IGF BLOCK 1' system requiring maintenance, and what are its critical functions for U.S. Customs and Border Protection?

The 'IGF BLOCK 1' likely refers to a specific system or platform managed by U.S. Customs and Border Protection (CBP) that is crucial for its border security operations. Without access to classified or internal CBP documentation, the exact nature of 'IGF BLOCK 1' cannot be definitively stated. However, given CBP's mission, it could relate to surveillance systems, communication networks, data processing platforms, or operational support infrastructure. The 'maintenance task order' implies that this system requires ongoing upkeep, repair, and potentially upgrades to ensure its continuous and effective operation. The criticality of such systems for CBP cannot be overstated, as they are fundamental to monitoring borders, detecting illicit activities, and facilitating legitimate trade and travel.

How does the fixed-price incentive (FPI) contract type typically function, and what are the potential risks and benefits for the government in this context?

A fixed-price incentive (FPI) contract is a type of cost-reimbursement contract where the contractor and the government share the costs or savings based on whether the final cost is above or below a target cost. The government sets a target cost, a target profit, and a price ceiling. If the final cost is below the target cost, both parties share in the savings according to a pre-negotiated formula. If the final cost exceeds the target cost, both parties share in the overruns up to the price ceiling. The primary benefit for the government is the potential for cost savings if the contractor performs efficiently, while still providing an incentive for the contractor to control costs. However, risks include the complexity of administration, the potential for disputes over cost allocation, and the possibility that the final price could still exceed the target cost, especially if performance targets are challenging or unforeseen issues arise.

What is The Boeing Company's track record with similar maintenance and technical services contracts for federal agencies, particularly within homeland security or defense sectors?

The Boeing Company is a major global aerospace and defense contractor with a long history of providing complex systems, services, and support to government agencies, including the Department of Defense and the Department of Homeland Security. Their track record typically involves large-scale, high-value contracts for aircraft, satellite systems, command and control systems, and related maintenance, sustainment, and technical support. For homeland security and defense sectors, Boeing has been a key provider of platforms and services that require sophisticated maintenance and technical expertise. While specific details of past performance on contracts similar to 'IGF BLOCK 1 MAINTENANCE TASK ORDER' are not publicly available without deeper contract analysis, Boeing's general reputation is that of a capable, albeit expensive, provider of advanced technological solutions and long-term support for critical government assets.

Given the $19.2 million award value and the 1413-day duration, what is the approximate average annual spending for this task order, and how does it compare to typical spending for similar technical se

The total award value for this task order is $19,201,829 over a period of 1413 days. To estimate the average annual spending, we first convert the duration to years: 1413 days / 365.25 days/year ≈ 3.87 years. Dividing the total award value by the duration in years gives an approximate average annual spending: $19,201,829 / 3.87 years ≈ $4.96 million per year. Comparing this to typical spending for similar technical services is challenging without a precise definition of 'IGF BLOCK 1' and its functions. However, for specialized technical maintenance and support of complex government systems, an annual spending of around $5 million can be considered moderate to significant, depending on the criticality and technological sophistication of the system being maintained. Larger, more complex platforms or systems might command higher annual support costs.

What are the potential risks associated with awarding a long-term maintenance contract to a single large contractor like The Boeing Company?

Awarding a long-term maintenance contract to a single large contractor like The Boeing Company presents several potential risks. Firstly, there's a risk of vendor lock-in, where the government becomes heavily reliant on the contractor's proprietary systems, processes, and expertise, making it difficult and costly to switch providers in the future. Secondly, reduced competition over time can lead to complacency and potentially higher prices or lower service quality, as the contractor may face less pressure to innovate or optimize costs. Thirdly, the contractor's financial health or strategic priorities could shift, potentially impacting their commitment or ability to deliver services effectively. Finally, a single point of failure exists; if Boeing experiences significant operational disruptions, financial difficulties, or legal issues, it could directly jeopardize the maintenance and operational readiness of the critical systems covered by the contract.

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 - GENERAL

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, 92647

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,201,829

Exercised Options: $19,201,829

Current Obligation: $19,201,829

Parent Contract

Parent Award PIID: HSBP1006D01353

IDV Type: IDC

Timeline