Boeing Awarded $98.9M for Secure Border Initiative Network Tower Design
Contract Overview
Contract Amount: $98,916,215 ($98.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Homeland Security
Start Date: 2007-08-01
End Date: 2009-07-31
Contract Duration: 730 days
Daily Burn Rate: $135.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: LAY-DOW DESIGN EFFORT FOR SECURE BORDER INITIATIVE NETWORK (SBINET) TOWERS.
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
Department of Homeland Security obligated $98.9 million to THE BOEING COMPANY for work described as: LAY-DOW DESIGN EFFORT FOR SECURE BORDER INITIATIVE NETWORK (SBINET) TOWERS. Key points: 1. Significant contract awarded to a major defense contractor. 2. Focus on secure network infrastructure for border initiatives. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Limited direct small business participation indicated.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee. While this can be suitable for R&D, it carries a risk of cost escalation if not closely managed, potentially exceeding benchmarks for similar design efforts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing outcomes and whether the competition drove optimal price discovery are not detailed.
Taxpayer Impact: Taxpayer funds are being utilized for critical border security infrastructure design. The CPFF structure necessitates vigilant oversight to ensure cost-effectiveness and prevent unnecessary expenditure.
Public Impact
Enhances border security technology infrastructure. Supports national security objectives through network design. Potential impact on border patrol operations and effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Lack of direct small business subcontracting reported.
- Contract duration is substantial for a design effort.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical national security need.
- Experienced contractor with relevant capabilities.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically related to IT and security infrastructure. Benchmarks for similar large-scale network design projects are highly variable, but significant investments are common for national security initiatives.
Small Business Impact
The data indicates no direct small business participation in this contract. Opportunities for small businesses would likely be through subcontracting, but no specific set-asides or participation goals are evident from the provided information.
Oversight & Accountability
The Department of Homeland Security, specifically U.S. Customs and Border Protection, is responsible for oversight. The CPFF contract type requires robust monitoring of costs and performance to ensure accountability and value for taxpayer money.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- No reported small business participation.
- Long contract duration for a design effort.
- Potential for scope creep and cost overruns.
Tags
all-other-professional-scientific-and-te, department-of-homeland-security, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $98.9 million to THE BOEING COMPANY. LAY-DOW DESIGN EFFORT FOR SECURE BORDER INITIATIVE NETWORK (SBINET) TOWERS.
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 $98.9 million.
What is the period of performance?
Start: 2007-08-01. End: 2009-07-31.
What was the final cost of the project compared to the initial estimate, and how did it align with industry benchmarks for similar design efforts?
The final cost was $98.9 million. Without initial estimates or detailed cost breakdowns, a direct comparison to benchmarks is difficult. However, CPFF contracts inherently carry a risk of exceeding initial expectations if scope or unforeseen issues arise, necessitating close monitoring by DHS.
What specific risks were identified during the full and open competition process, and how were they mitigated by the chosen contractor?
The provided data does not detail specific risks identified during the competition or the mitigation strategies employed by The Boeing Company. A full and open competition aims to surface and address risks through the bidding process, but this information is not available here.
How effectively did the SBINET tower design contribute to the overall goals of the Secure Border Initiative, and what was the long-term impact on border security operations?
The effectiveness of the SBINET tower design is not directly measurable from this contract data alone. Its contribution would depend on the successful implementation of the design, integration with other systems, and subsequent operational performance in enhancing border security.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
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: $99,995,741
Exercised Options: $98,916,215
Current Obligation: $98,916,215
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSBP1006D01353
IDV Type: IDC
Timeline
Start Date: 2007-08-01
Current End Date: 2009-07-31
Potential End Date: 2009-07-31 00:00:00
Last Modified: 2021-06-21
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