Boeing awarded $311M contract for pedestrian and vehicle fence support by DHS
Contract Overview
Contract Amount: $311,091,558 ($311.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Homeland Security
Start Date: 2008-01-07
End Date: 2010-06-15
Contract Duration: 890 days
Daily Burn Rate: $349.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TAS::70 0533::TAS SUPPLY AND SUPPLY CHAIN MANAGEMENT IN SUPPORT OF PEDESTRIAN FENCE 225 AND VEHICLE FENCE 300 PROJECTS
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $311.1 million to THE BOEING COMPANY for work described as: TAS::70 0533::TAS SUPPLY AND SUPPLY CHAIN MANAGEMENT IN SUPPORT OF PEDESTRIAN FENCE 225 AND VEHICLE FENCE 300 PROJECTS Key points: 1. Contract awarded to a single, large defense contractor, raising questions about potential for broader competition. 2. Significant contract value suggests a critical need for border security infrastructure. 3. Long duration of the contract (890 days) indicates a substantial and ongoing requirement. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, potentially masking specific service details. 5. Awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 6. The contract's value is substantial, representing a significant investment in border infrastructure.
Value Assessment
Rating: fair
The contract value of $311 million for fence support services is substantial. Benchmarking this against similar large-scale infrastructure projects for border security is challenging without more specific details on the services rendered. The Cost Plus Fixed Fee (CPFF) pricing structure can sometimes lead to cost overruns if not closely managed, but it also allows for flexibility in complex projects. The relatively low number of bids (implied by 'full and open competition' but likely a single award) might suggest limited price negotiation opportunities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. However, the fact that it resulted in a single award to The Boeing Company suggests that either Boeing was the only bidder, or it was the only one that met the stringent requirements. This level of competition, while technically open, may not have driven the most competitive pricing due to the specialized nature of the requirement or the limited number of qualified bidders.
Taxpayer Impact: While the competition was technically open, a single award might mean taxpayers did not benefit from the full range of price reductions typically seen with multiple competitive bids.
Public Impact
The primary beneficiaries are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), receiving enhanced border security capabilities. Services delivered include support for pedestrian and vehicle fencing projects, crucial for managing border access. The geographic impact is focused on U.S. border regions where these fence projects are implemented. Workforce implications may include direct employment by Boeing and its subcontractors, as well as potential indirect impacts on local economies near border installations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the Cost Plus Fixed Fee (CPFF) contract type if not meticulously managed.
- Limited visibility into the specific technical services provided under the broad 'All Other Professional, Scientific, and Technical Services' NAICS code.
- Reliance on a single large contractor for critical border infrastructure support could pose supply chain or performance risks.
- The long contract duration may indicate a need for ongoing, potentially escalating, investment in border security infrastructure.
Positive Signals
- Awarded through full and open competition, suggesting an attempt to leverage the widest possible market.
- The Boeing Company is a well-established aerospace and defense contractor with significant experience in large-scale projects.
- The contract addresses a critical national security need for border infrastructure.
- The Delivery Order structure implies it is part of a potentially larger, pre-vetted contracting vehicle.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically related to defense and national security. The market for border security technology and infrastructure is substantial, driven by government needs for surveillance, physical barriers, and operational support. Spending in this area often involves large, complex contracts awarded to major defense and aerospace firms, reflecting the scale and technical requirements. Comparable spending benchmarks would likely be found within DHS and DoD contracts for large-scale construction, engineering, and technical support services.
Small Business Impact
The contract data indicates that small business participation was not a stated requirement (ss: false, sb: false). As a large prime contract awarded to The Boeing Company, there is no direct set-aside for small businesses. However, Boeing, like most large federal contractors, is expected to have subcontracting plans. The extent to which small businesses will benefit depends on Boeing's subcontracting strategy and the specific needs of the fence projects. Without explicit small business goals or reporting, the direct impact on the small business ecosystem is uncertain.
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 (DHS). As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure costs remain within the fixed fee parameters. Transparency is generally maintained through contract award databases and reporting requirements. The DHS Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Department of Homeland Security - Border Security
- U.S. Customs and Border Protection - Infrastructure Projects
- Federal Contracts for Physical Security
- Large-Scale Engineering and Technical Services Contracts
Risk Flags
- Potential for cost overruns (CPFF contract type)
- Broad NAICS code limits specificity of services
- Single award in 'full and open' competition raises questions about market breadth
- Long contract duration may indicate sustained, high-level investment
Tags
dhs, u-s-customs-and-border-protection, border-security, infrastructure, pedestrian-fence, vehicle-fence, professional-scientific-and-technical-services, full-and-open-competition, cost-plus-fixed-fee, delivery-order, virginia, the-boeing-company
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $311.1 million to THE BOEING COMPANY. TAS::70 0533::TAS SUPPLY AND SUPPLY CHAIN MANAGEMENT IN SUPPORT OF PEDESTRIAN FENCE 225 AND VEHICLE FENCE 300 PROJECTS
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 $311.1 million.
What is the period of performance?
Start: 2008-01-07. End: 2010-06-15.
What specific technical services are included under the 'All Other Professional, Scientific, and Technical Services' NAICS code for this contract?
The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is a broad category. For this specific contract, it likely encompasses a range of activities related to the planning, design, engineering, installation oversight, and potentially maintenance or integration support for pedestrian and vehicle fences. This could include site surveys, environmental assessments, material sourcing, logistical support for deployment, and technical consulting. Without further declassification or specific contract line item details, the precise nature of these services remains generalized under this broad classification. The value of the contract suggests these services are substantial and critical to the physical security infrastructure at the border.
How does the $311 million contract value compare to historical spending on similar border fence projects by DHS?
Comparing this $311 million contract value to historical spending on similar border fence projects requires access to detailed historical contract data and project scopes. However, it is indicative of a significant investment. Large-scale border infrastructure projects, especially those involving extensive physical barriers and associated technology, can run into hundreds of millions or even billions of dollars over their lifecycle. This particular contract, awarded to Boeing, suggests a substantial component of the overall border security infrastructure budget. To provide a precise comparison, one would need to aggregate spending on comparable fence construction, technology integration, and support services across various DHS contracts over several fiscal years.
What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract?
Key performance indicators (KPIs) for a contract of this nature would likely focus on timely project completion, adherence to technical specifications and quality standards for fence installation, cost control within the fixed fee, and operational effectiveness of the installed barriers. Risk mitigation strategies would be crucial given the CPFF structure and the sensitive nature of border security. These could include robust project management, regular progress reviews, independent quality assurance checks, stringent financial auditing, and contingency planning for unforeseen site conditions or material challenges. The contract's duration and value necessitate a proactive approach to identifying and managing potential risks throughout its lifecycle.
What is The Boeing Company's track record with Department of Homeland Security contracts, particularly in infrastructure or security?
The Boeing Company has a long and extensive track record with various U.S. government agencies, including the Department of Homeland Security (DHS), primarily in aerospace and defense. While Boeing is more widely known for aircraft and defense systems, it also engages in large-scale integration, logistics, and technical support services. Its experience with complex, high-value government contracts suggests a capability to manage projects of this scale. For DHS, Boeing has likely been involved in various technology and support contracts. Specific experience with border infrastructure projects like fence support would need to be verified through detailed contract databases, but their general capacity for managing large, technically demanding government programs is well-established.
Given the 'full and open competition' award, why was only one bid seemingly successful, and what does this imply for future procurements?
A 'full and open competition' award resulting in a single bidder can occur for several reasons. The requirement might be highly specialized, requiring unique technical expertise or security clearances that only a few companies possess, such as The Boeing Company. Alternatively, the solicitation's requirements might have been so stringent that only one offeror could meet them. It's also possible that other potential bidders chose not to compete due to the complexity, cost, or perceived low probability of success. This implies that for similar future procurements, DHS might need to consider market research to ensure adequate competition, potentially by breaking down requirements into smaller, more accessible lots or by adjusting solicitation criteria if feasible and appropriate for the mission.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
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: $311,091,558
Exercised Options: $311,091,558
Current Obligation: $311,091,558
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSBP1006D01353
IDV Type: IDC
Timeline
Start Date: 2008-01-07
Current End Date: 2010-06-15
Potential End Date: 2010-06-15 00:00:00
Last Modified: 2022-02-16
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