Boeing awarded $13.5M for affordable weapons systems, highlighting R&D in physical sciences
Contract Overview
Contract Amount: $13,505,587 ($13.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2007-11-21
End Date: 2009-09-28
Contract Duration: 677 days
Daily Burn Rate: $19.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 11
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AFFORDABLE WEAPONS SYSTEM(S)
Place of Performance
Location: SAINT LOUIS, ST. LOUIS (CITY) County, MISSOURI, 63166
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $13.5 million to THE BOEING COMPANY for work described as: AFFORDABLE WEAPONS SYSTEM(S) Key points: 1. Contract value of $13.5 million for weapons systems development. 2. Focus on Research and Development in physical, engineering, and life sciences. 3. Awarded by the Department of the Navy, indicating defense sector focus. 4. Contract type is Firm Fixed Price, suggesting cost certainty for the government. 5. Full and open competition was utilized, implying a broad search for qualified bidders. 6. Contract duration of 677 days. 7. The contractor, The Boeing Company, is a major defense industry player.
Value Assessment
Rating: good
The contract value of $13.5 million for R&D in weapons systems appears reasonable given the nature of advanced research and development. Benchmarking against similar contracts for weapons system development would provide a more precise assessment of value for money. The firm fixed price structure helps manage cost risks for the government, but the ultimate value is tied to the successful development of the 'affordable weapons system(s)'.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that the Department of the Navy sought proposals from all responsible sources. With 11 bidders, this indicates a healthy level of competition for this R&D effort. A competitive process generally leads to better price discovery and potentially more innovative solutions.
Taxpayer Impact: The use of full and open competition with multiple bidders is beneficial for taxpayers as it likely resulted in a more competitive price and a wider range of technical approaches being considered.
Public Impact
The primary beneficiaries are the Department of Defense and potentially future military personnel who will utilize the developed weapons systems. The services delivered involve research and development activities focused on creating affordable weapons systems. The geographic impact is primarily within the United States, where the research and development activities will be conducted. Workforce implications include employment for scientists, engineers, and technical staff involved in the R&D process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if R&D proves more complex than anticipated, despite fixed-price structure.
- Risk that the developed 'affordable weapons system(s)' may not meet all performance requirements.
- Dependence on a single large contractor (Boeing) for a critical defense R&D effort.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Firm Fixed Price contract type provides cost certainty for the government.
- The contractor, Boeing, has extensive experience in aerospace and defense R&D.
- Focus on 'affordable' systems suggests an effort to control long-term costs.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on research and development for weapons systems. The market for defense R&D is characterized by significant government investment, long development cycles, and specialized technological requirements. Comparable spending benchmarks would involve looking at other R&D contracts for advanced military technology within the Department of Defense.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. As a large contract awarded to a major prime contractor, the primary impact on the small business ecosystem would be through potential subcontracting opportunities if Boeing chooses to engage small businesses for specific components or services.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed price contract, requiring delivery of specified outcomes. Transparency is generally maintained through contract award databases, though specific R&D details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Programs
- Naval Air Systems Command Contracts
- Weapons System Development Contracts
- Advanced Technology Development Contracts
Risk Flags
- Potential for R&D project scope creep.
- Uncertainty in achieving 'affordable' cost targets for new weapons systems.
- Dependence on contractor's technical expertise for successful development.
Tags
defense, department-of-defense, department-of-the-navy, research-and-development, weapons-systems, firm-fixed-price, full-and-open-competition, large-contractor, missouri, aerospace, technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.5 million to THE BOEING COMPANY. AFFORDABLE WEAPONS SYSTEM(S)
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $13.5 million.
What is the period of performance?
Start: 2007-11-21. End: 2009-09-28.
What is the specific nature of the 'affordable weapons system(s)' being developed under this contract?
The provided data does not specify the exact nature of the 'affordable weapons system(s)'. The contract's description is broad, indicating 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. This suggests the project involves the foundational research and early-stage development of new weapon technologies aimed at cost-effectiveness. Further details would likely be found in the contract's statement of work, which is not publicly available in this dataset. The focus on affordability implies a strategic goal to reduce lifecycle costs, acquisition expenses, or operational expenditures compared to existing systems.
How does the $13.5 million contract value compare to typical R&D spending for similar weapons systems?
A direct comparison of the $13.5 million contract value to typical R&D spending for similar weapons systems is challenging without more specific details about the technology and scope of work. However, for early-stage R&D, this amount can be substantial, covering significant engineering and scientific effort over the contract's duration. Major weapons system development often involves multi-billion dollar programs, but initial research and component development phases can fall within this range. The fact that it was competed among 11 bidders suggests it was an attractive opportunity within its specific technological niche. Benchmarking would require access to databases of comparable R&D contracts for specific defense technologies.
What are the key performance indicators (KPIs) or milestones associated with this contract?
The provided data does not explicitly list the Key Performance Indicators (KPIs) or milestones for this contract. However, for a Research and Development contract of this nature, typical milestones would likely include the completion of feasibility studies, prototype development, system integration testing, and final technical reports. Performance would be assessed based on the successful achievement of these stages, adherence to technical specifications, and the demonstration of the 'affordable' aspect of the weapons system. The firm fixed price nature implies that meeting these defined milestones within budget is critical for contractor performance evaluation.
What is The Boeing Company's track record in developing similar weapons systems?
The Boeing Company has an extensive and well-established track record in developing a wide array of complex weapons systems for the U.S. military and international partners. Their portfolio includes fighter jets (like the F-15 and F/A-18), bombers (B-52 modernization), rotorcraft (AH-64 Apache), missiles, and various defense electronics. They have consistently been a major player in defense R&D, undertaking projects that range from incremental improvements to entirely new platforms. Their experience in managing large, complex defense contracts and navigating advanced technological challenges is significant, making them a logical choice for such R&D efforts.
What are the potential risks associated with this specific R&D contract?
The primary risks associated with this R&D contract include technological uncertainty, as the success of developing novel weapons systems is inherently unpredictable. There's a risk that the research may not yield the desired outcomes or that the 'affordable' aspect proves more challenging to achieve than initially projected. Schedule delays are also a common risk in R&D, potentially impacting the delivery timeline. Furthermore, while the contract is firm fixed price, unforeseen technical challenges could strain the contractor's resources or lead to scope adjustments. The long-term viability and integration of the developed system into the existing military infrastructure also present potential risks.
How has spending on 'Research and Development in the Physical, Engineering, and Life Sciences' by the Department of the Navy trended historically?
Historical spending by the Department of the Navy (DoN) on 'Research and Development in the Physical, Engineering, and Life Sciences' (NAICS code 541712) has generally been substantial, reflecting the critical role of technological advancement in naval superiority. While specific year-over-year trends fluctuate based on strategic priorities, budget allocations, and emerging threats, the DoN consistently invests billions annually in R&D across these domains. This includes areas like materials science, advanced propulsion, sensor technology, cyber capabilities, and autonomous systems. Contracts like the one awarded to Boeing are part of this ongoing investment strategy to maintain a technological edge.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: N0001907R0095
Offers Received: 11
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $13,505,587
Exercised Options: $13,505,587
Current Obligation: $13,505,587
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-11-21
Current End Date: 2009-09-28
Potential End Date: 2009-09-28 00:00:00
Last Modified: 2010-08-27
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