DoD awards Boeing $18.3M for Integrated Computerized Deployment System (ICODES) maintenance through FY25

Contract Overview

Contract Amount: $18,311,417 ($18.3M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $50.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INTEGRATED COMPUTERIZED DEPLOYMENT SYSTEM (ICODES)

Place of Performance

Location: BELLEVILLE, SAINT CLAIR County, ILLINOIS, 62220

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $18.3 million to THE BOEING COMPANY for work described as: INTEGRATED COMPUTERIZED DEPLOYMENT SYSTEM (ICODES) Key points: 1. Contract value represents a significant investment in critical logistics IT infrastructure. 2. Boeing's established presence in defense contracting suggests a degree of familiarity with DoD requirements. 3. The firm-fixed-price structure aims to control costs, but requires careful monitoring for scope creep. 4. Performance period aligns with the upcoming fiscal year, indicating immediate operational needs. 5. The contract falls under 'Other Electronic and Precision Equipment Repair and Maintenance,' highlighting its specialized nature. 6. This award is part of a broader DoD effort to modernize and maintain its deployment systems.

Value Assessment

Rating: good

The contract value of $18.3 million for a 364-day period appears reasonable for specialized IT system maintenance. Benchmarking against similar contracts for large-scale IT system support within the Department of Defense would provide a more precise value-for-money assessment. However, given the complexity of systems like ICODES, this price point suggests a focused scope of work rather than a comprehensive overhaul. The firm-fixed-price nature indicates that the government has negotiated a set price, which can be advantageous if the scope is well-defined and managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 4 bidders suggests a competitive environment, which typically drives better pricing and innovation. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would further illuminate the effectiveness of the competition. A competitive award process is generally favorable for the government.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a marketplace where contractors vie for the best value. This process helps ensure that the government is not overpaying for services.

Public Impact

Military personnel and logistics planners benefit from a reliable and functional ICODES system for deployment operations. The contract ensures the continued operation and maintenance of a critical IT system used across the Department of Defense. Geographic impact is national, as ICODES supports global deployment readiness. Workforce implications include potential support roles for IT specialists and maintenance technicians, likely concentrated where Boeing has operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope is not tightly managed under firm-fixed-price.
Dependence on a single contractor for critical system maintenance could pose future risks.
Limited visibility into the specific maintenance tasks and their efficiency without further detail.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type helps to establish cost certainty.
Boeing's experience in defense contracting suggests a strong understanding of requirements.

Sector Analysis

The IT services sector, particularly within defense, is characterized by complex systems requiring specialized maintenance and support. The market for such services is substantial, with significant government spending allocated to maintaining and upgrading mission-critical IT infrastructure. This contract for the Integrated Computerized Deployment System (ICODES) fits within the broader category of IT support and maintenance for defense logistics, a segment that demands high levels of security, reliability, and technical expertise. Comparable spending benchmarks would likely involve other large-scale IT system maintenance contracts awarded by DoD agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus of this award was on the prime contractor's capabilities. The impact on the small business ecosystem is likely minimal unless Boeing actively engages small businesses as subcontractors for specific support tasks, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the USTRANSCOM contracting office and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is typically facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

DoD Logistics IT Modernization Programs
Defense Transportation Systems
Global Deployment and Mobilization Systems
IT Infrastructure Maintenance Contracts

Risk Flags

Potential for scope creep in firm-fixed-price contracts.
Dependence on a single contractor for critical system maintenance.
Cybersecurity risks associated with legacy IT systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.3 million to THE BOEING COMPANY. INTEGRATED COMPUTERIZED DEPLOYMENT SYSTEM (ICODES)

Who is the contractor on this award?

The obligated recipient is THE BOEING COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $18.3 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the historical spending on the Integrated Computerized Deployment System (ICODES) by the Department of Defense?

Historical spending data for the Integrated Computerized Deployment System (ICODES) prior to this award is not explicitly provided in the given data. However, the fact that a new contract valued at $18.3 million has been awarded for maintenance through September 2025 suggests a sustained need and likely significant prior investment in the system. To provide a comprehensive historical spending picture, one would need to access historical contract databases and search for all previous awards related to ICODES, including development, maintenance, and upgrades, across all relevant fiscal years and agencies within the DoD. This would allow for an analysis of spending trends and the total lifecycle cost of the system.

How does the per-unit cost of maintaining ICODES compare to similar logistics IT systems within the DoD?

A direct per-unit cost comparison for maintaining ICODES is challenging without a clearly defined 'unit' of service (e.g., per user, per server, per transaction) and detailed cost breakdowns. The provided data indicates a total award of $18.3 million for a 364-day period. To benchmark this, we would need to identify comparable DoD logistics IT systems (e.g., Global Combat Support System-Army, Navy Enterprise Resource Planning) and analyze their maintenance contracts. Key metrics for comparison would include cost per server, cost per user license, or cost as a percentage of the system's total value. Without such granular data and defined units of measure, a precise per-unit cost comparison is not feasible based solely on the provided contract information.

What is Boeing's track record with similar large-scale IT system maintenance contracts for the Department of Defense?

The Boeing Company has an extensive and long-standing track record of performing large-scale IT system development, integration, and maintenance for the Department of Defense across various platforms and services. While this specific contract is for the Integrated Computerized Deployment System (ICODES), Boeing has historically been involved in numerous complex defense IT programs, including command and control systems, logistics management systems, and communication networks. Their experience often involves managing intricate software, hardware, and network infrastructure, adhering to stringent security protocols, and meeting demanding operational requirements. A review of past performance evaluations and contract awards would reveal the breadth and success of their prior engagements in similar IT maintenance roles.

What are the primary risks associated with the maintenance of the ICODES system, and how are they being mitigated?

Primary risks associated with maintaining the ICODES system include potential cybersecurity vulnerabilities, system obsolescence, integration challenges with other DoD systems, and the risk of performance degradation due to aging hardware or software. Mitigation strategies often involve rigorous security testing and patching, phased modernization efforts, robust testing before deploying updates, and maintaining strong technical support from the contractor. The firm-fixed-price nature of this contract helps mitigate cost overrun risks, provided the scope is well-defined. However, the long-term risk of vendor lock-in or the need for significant future investment in system upgrades remains a consideration.

How does the current award for ICODES maintenance compare to previous contract awards for the same system in terms of value and duration?

The provided data shows a current award of $18.3 million with a duration of 364 days (effectively one year). To compare this to previous awards, one would need to access historical contract databases for ICODES. This would involve looking at the total value, duration, contract type, and competition level of prior maintenance or support contracts. For instance, if previous contracts were significantly larger or smaller in value, or had longer durations, it could indicate a change in the system's maintenance needs, the scope of work, or the contracting strategy. A trend of increasing or decreasing contract values could also signal evolving system requirements or market conditions.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HTC71124QD007

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6200 JAMES S MCDONNELL BLVD, SAINT LOUIS, MO, 63134

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,438,305

Exercised Options: $19,886,475

Current Obligation: $18,311,417

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,078,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00G3

IDV Type: FSS

Timeline