DHS awards $64M Boeing contract for Integrated Logistics Support, raising questions on value and competition
Contract Overview
Contract Amount: $64,018,335 ($64.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Homeland Security
Start Date: 2008-08-16
End Date: 2010-12-02
Contract Duration: 838 days
Daily Burn Rate: $76.4K/day
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: INTEGRATED LOGISTICS SUPPORT
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $64.0 million to THE BOEING COMPANY for work described as: INTEGRATED LOGISTICS SUPPORT Key points: 1. Contract awarded to The Boeing Company for Integrated Logistics Support. 2. Significant value of $64 million over a two-year period. 3. Lack of transparency regarding competition method and pricing. 4. Services fall under 'All Other Professional, Scientific, and Technical Services' NAICS code.
Value Assessment
Rating: questionable
The contract's Cost Plus Incentive Fee (CPIF) structure can lead to cost overruns if not managed tightly. Benchmarking against similar logistics support contracts is difficult without more detailed service descriptions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract type and award details do not clearly indicate the competition method used. This lack of transparency makes it difficult to assess if fair and reasonable pricing was achieved through robust price discovery.
Taxpayer Impact: The potential for inflated costs due to unclear competition and CPIF structure could result in inefficient use of taxpayer funds.
Public Impact
Customs and Border Protection relies on this support for critical operations. The long-term implications of this contract on operational efficiency are unclear. Boeing's role in providing essential logistics services highlights the reliance on large contractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competitive bidding details
- Cost Plus Incentive Fee structure
- Limited public information on performance metrics
Positive Signals
- Awarded to a major defense contractor
- Supports critical DHS/CBP functions
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, which is broad. Benchmarking is challenging without specific service details, but large-scale logistics support contracts often represent significant government expenditure.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
Oversight of this contract would involve monitoring the CPIF structure to ensure cost control and verifying that the services provided meet the defined performance standards and objectives.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Potential for cost overruns due to CPIF structure
- Lack of transparency in competition and award process
- Difficulty in benchmarking performance and cost
- Reliance on a single large contractor for critical support
Tags
all-other-professional-scientific-and-te, department-of-homeland-security, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $64.0 million to THE BOEING COMPANY. INTEGRATED LOGISTICS SUPPORT
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 $64.0 million.
What is the period of performance?
Start: 2008-08-16. End: 2010-12-02.
What specific logistics support services are included in this contract, and how do they align with agency needs?
The provided data identifies the contract as 'INTEGRATED LOGISTICS SUPPORT' under NAICS code 541990. However, specific details of the services rendered are not available. Understanding the precise nature of these services is crucial for assessing their alignment with the U.S. Customs and Border Protection's operational requirements and for evaluating the overall value proposition.
What was the justification for the chosen contract type (Cost Plus Incentive Fee) and the procurement method?
The Cost Plus Incentive Fee (CPIF) structure suggests that performance targets and cost goals were established, with incentives for meeting or exceeding them. However, without details on the procurement method (e.g., sole-source, full and open competition), it's difficult to assess if this structure was the most effective for achieving fair pricing and optimal value for the government.
How does the performance of this contract compare to industry benchmarks for similar integrated logistics support services?
Assessing performance against industry benchmarks is challenging due to the limited information provided. Key performance indicators, cost efficiency metrics, and service delivery timelines are not publicly available. A thorough comparison would require access to detailed performance reports and cost data relative to comparable contracts in the logistics support sector.
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
Contractor Details
Address: 5301 BOLSA AVE, HUNTINGTON BEACH, CA, 92647
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $64,018,335
Exercised Options: $64,018,335
Current Obligation: $64,018,335
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSBP1006D01353
IDV Type: IDC
Timeline
Start Date: 2008-08-16
Current End Date: 2010-12-02
Potential End Date: 2010-12-02 00:00:00
Last Modified: 2021-07-06
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)