Boeing awarded $76.5M for C3I services by DHS, highlighting long-term government contracting

Contract Overview

Contract Amount: $76,515,289 ($76.5M)

Contractor: THE Boeing Company

Awarding Agency: Department of Homeland Security

Start Date: 2007-12-07

End Date: 2010-06-24

Contract Duration: 930 days

Daily Burn Rate: $82.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: COP/C3I

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $76.5 million to THE BOEING COMPANY for work described as: COP/C3I Key points: 1. Contract value of $76.5M over 3 years suggests significant investment in Command, Control, Communications, and Intelligence (C3I) capabilities. 2. The 'All Other Professional, Scientific, and Technical Services' NAICS code indicates a broad scope of work, potentially encompassing diverse technical support. 3. A Cost Plus Award Fee (CPAF) contract type allows for performance-based incentives, aiming to align contractor efforts with government objectives. 4. The contract was awarded under full and open competition, suggesting a robust bidding process. 5. The duration of 930 days (approx. 2.5 years) indicates a need for sustained support. 6. The award was made to a single contractor, The Boeing Company, for this specific delivery order.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without more granular data on the services provided and comparable contracts. The Cost Plus Award Fee structure introduces variability in the final cost, making direct price comparisons difficult. However, the total award amount of $76.5M over approximately 2.5 years suggests a substantial investment in C3I capabilities. Further analysis would require understanding the specific deliverables and performance metrics tied to the award fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple potential bidders were allowed to submit proposals. The specific number of bidders is not provided, but the designation suggests a competitive process was initiated. This approach is generally favored to ensure fair pricing and access to the best available solutions.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) within the Department of Homeland Security (DHS), receiving enhanced C3I capabilities. The services delivered likely support border security operations, intelligence gathering, and communication systems critical for national security. The geographic impact is likely national, given the scope of CBP's mission, with potential specific operational areas benefiting. Workforce implications may include specialized technical roles within The Boeing Company and potentially indirect impacts on government personnel managing the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can lead to higher costs if not managed diligently, as the government pays costs plus a fee that can increase with performance.
The broad NAICS code 'All Other Professional, Scientific, and Technical Services' might obscure the specific nature of the services, making detailed performance assessment more complex.
Lack of specific bidder numbers in the provided data makes it difficult to fully assess the intensity of competition.

Positive Signals

Awarded under full and open competition, suggesting a structured and potentially cost-effective procurement process.
The use of a Cost Plus Award Fee contract incentivizes contractor performance, potentially leading to higher quality outcomes.
The contract is with a large, established defense contractor (The Boeing Company), which may indicate a level of reliability and expertise.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to IT and defense/security applications (COP/C3I). The market for C3I solutions is substantial, driven by government needs for advanced communication, intelligence, and command capabilities. Comparable spending benchmarks would involve analyzing other large-scale C3I system development and support contracts awarded by defense and homeland security agencies.

Small Business Impact

The provided data indicates that small business participation (sb) was false for this contract. There is no explicit mention of small business set-asides or subcontracting plans. This suggests that the primary award was made to a large business, and opportunities for small businesses would likely depend on Boeing's subcontracting strategy, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Customs and Border Protection (CBP) contracting officers and program managers within the Department of Homeland Security. The Cost Plus Award Fee structure necessitates close monitoring of costs and performance to ensure the award fee is justified. Transparency would be enhanced through regular reporting requirements stipulated in the contract. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Homeland Security Information Network (HSIN)
Command, Control, Communications, Computers, and Intelligence (C4I) Systems
Department of Homeland Security IT Modernization Efforts
Border Surveillance and Detection Technology Contracts

Risk Flags

Potential for cost overruns due to CPAF structure if not managed tightly.
Vendor lock-in risk with a single large contractor for critical C3I systems.
Broad NAICS code may limit transparency into specific service details.
Contract duration and value suggest a significant, long-term dependency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $76.5 million to THE BOEING COMPANY. COP/C3I

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 $76.5 million.

What is the period of performance?

Start: 2007-12-07. End: 2010-06-24.

What specific C3I capabilities does this contract aim to enhance for U.S. Customs and Border Protection?

The provided data abbreviates the service as 'COP/C3I', which typically refers to Common Operational Picture and Command, Control, Communications, and Intelligence systems. For U.S. Customs and Border Protection (CBP), this likely translates to enhancing their ability to gather, process, and disseminate real-time information from various sensors and sources (e.g., radar, aerial surveillance, sensor networks) to a common display. This improves situational awareness for border patrol agents, inter-agency coordination, and decision-making regarding border security threats, smuggling interdiction, and overall operational effectiveness. The specific enhancements could range from software upgrades and system integration to the development of new analytical tools and communication protocols.

How does the Cost Plus Award Fee (CPAF) structure typically function in contracts like this?

A Cost Plus Award Fee (CPAF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs incurred, plus a fee. The fee consists of two parts: a base fee (often a small percentage of estimated costs) and an award fee. The award fee is earned based on the government's evaluation of the contractor's performance against pre-defined criteria and metrics. For this contract with DHS, Boeing would receive its costs plus a base fee, and then potentially earn an additional award fee based on how well they met or exceeded performance expectations related to the C3I services. This structure aims to incentivize high performance by linking a significant portion of the contractor's profit to achieving specific government objectives and quality standards.

What are the potential risks associated with a 'full and open competition' award to a single large contractor for C3I services?

While 'full and open competition' is generally positive, awarding a large C3I contract to a single entity like The Boeing Company carries potential risks. One risk is vendor lock-in, where the government becomes heavily reliant on one provider for critical systems, potentially limiting future flexibility or negotiation leverage. Another risk is that the initial competitive pricing might not hold over the contract's life, especially with a CPAF structure where performance incentives can increase costs. Furthermore, if Boeing's performance falters or if unforeseen technical challenges arise, the government may have limited immediate alternatives due to the specialized nature of C3I and the contractor's established role. Ensuring robust oversight and clear performance metrics is crucial to mitigate these risks.

How does the $76.5M award compare to typical spending on C3I systems by DHS or similar agencies?

The $76.5 million award for C3I services over approximately 2.5 years represents a significant, but not extraordinary, investment for an agency like DHS, particularly for U.S. Customs and Border Protection (CBP). Large-scale C3I system development, integration, and sustainment programs for defense and homeland security agencies can range from tens of millions to billions of dollars. This specific award appears to be for a defined scope of services or a particular phase of a larger C3I initiative, rather than the entire system lifecycle. Without knowing the exact deliverables, it's difficult to benchmark precisely, but it falls within the expected range for substantial technical support contracts in this domain.

What is the historical context of The Boeing Company's involvement in government C3I contracts?

The Boeing Company has a long and extensive history as a major defense contractor involved in numerous Command, Control, Communications, Computers, and Intelligence (C4I) programs for the U.S. military and intelligence agencies. Their portfolio includes developing and integrating complex systems for platforms like aircraft, ships, and ground stations, as well as providing associated software and services. Boeing's experience spans decades and covers a wide array of technological domains relevant to C3I, including networking, data fusion, situational awareness displays, and secure communications. Their involvement in this DHS contract is consistent with their established role as a provider of sophisticated technological solutions for national security applications.

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

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

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: $76,515,289

Exercised Options: $76,515,289

Current Obligation: $76,515,289

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSBP1006D01353

IDV Type: IDC

Timeline