Boeing awarded $22.7M for augmented maintenance and training services by the Department of Defense

Contract Overview

Contract Amount: $22,694,084 ($22.7M)

Contractor: THE Boeing Company (0674)

Awarding Agency: Department of Defense

Start Date: 2009-04-01

End Date: 2014-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACTOR AUGMENTED MAINTENANCE&TRAINING

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $22.7 million to THE BOEING COMPANY (0674) for work described as: CONTRACTOR AUGMENTED MAINTENANCE&TRAINING Key points: 1. Contract value of $22.7 million over five years suggests a significant investment in specialized training and support. 2. The contract was awarded under full and open competition, indicating a potentially competitive bidding process. 3. A firm-fixed-price contract type generally transfers risk to the contractor, potentially stabilizing costs. 4. The duration of 1825 days (5 years) allows for sustained support and development of training programs. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade school services. 6. The contract was awarded by the Defense Contract Management Agency, suggesting a focus on defense-related training needs.

Value Assessment

Rating: good

The contract value of $22.7 million over five years averages to approximately $4.5 million annually. Without specific benchmarks for augmented maintenance and training services within the Department of Defense, a direct value-for-money assessment is challenging. However, the firm-fixed-price nature of the contract suggests that the government has negotiated a set price, which can be advantageous if the contractor's costs remain within expectations. Further analysis would require comparing this contract's scope and pricing to similar defense training contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically involves soliciting bids from all responsible prospective contractors. The presence of two bids (no: 2) indicates that while competition was sought, the number of actual bidders was limited. A higher number of bidders generally leads to more competitive pricing and a wider range of solutions. The limited number of bids here might suggest a specialized service where fewer companies possess the required capabilities or were interested.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a broad selection of potential providers. However, with only two bids received, the potential for significant price reductions through intense competition may have been constrained.

Public Impact

Personnel within the Department of Defense, likely military and civilian staff requiring specialized maintenance and operational training, are the primary beneficiaries. The services delivered are expected to enhance the operational readiness and effectiveness of defense systems through advanced training and maintenance support. The contract's geographic impact is not specified but likely centers around military installations or training facilities where the services are rendered. Workforce implications include the potential for employment opportunities for instructors, technical specialists, and support staff employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have reduced the pressure for the lowest possible price.
The firm-fixed-price contract, while transferring risk, could lead to higher initial costs if the contractor's risk assessment is conservative.

Positive Signals

Full and open competition was utilized, adhering to best practices for government procurement.
The firm-fixed-price contract type provides cost certainty for the government.
The contract duration allows for sustained program development and implementation.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on training and support services. The market for defense training is substantial, driven by the need for continuous skill development and adaptation to evolving military technologies. Companies like Boeing play a significant role in providing these specialized services, often leveraging their expertise in specific defense platforms. Comparable spending benchmarks would involve analyzing other contracts for similar technical training and maintenance support within the DoD.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside (sb: false). There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally facilitated through contract award databases, though specific performance details may be sensitive.

Related Government Programs

Defense Training Programs
Military Maintenance Services
Aerospace Support Contracts
Technical Education Services

Risk Flags

Limited Competition
Potential for Cost Overruns (if scope poorly defined)
Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.7 million to THE BOEING COMPANY (0674). CONTRACTOR AUGMENTED MAINTENANCE&TRAINING

Who is the contractor on this award?

The obligated recipient is THE BOEING COMPANY (0674).

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $22.7 million.

What is the period of performance?

Start: 2009-04-01. End: 2014-03-31.

What is the track record of THE BOEING COMPANY (0674) in delivering augmented maintenance and training services to the Department of Defense?

THE BOEING COMPANY has a long-standing and extensive track record with the Department of Defense, encompassing a wide array of services including aircraft manufacturing, defense systems, and support services. For augmented maintenance and training, Boeing typically leverages its deep understanding of the platforms it produces. This includes providing technical manuals, simulator training, hands-on maintenance instruction, and logistical support. Their experience often involves complex systems requiring specialized knowledge, making them a frequent choice for such contracts. The specific performance history on this particular contract (or similar ones) would require a deeper dive into DCMA performance reports and historical contract data, but their general profile suggests a high capability in this domain.

How does the $22.7 million contract value compare to similar augmented maintenance and training contracts within the DoD?

Assessing the $22.7 million value requires context regarding the scope and duration. This contract spans five years, averaging approximately $4.5 million annually. Similar contracts for augmented maintenance and training can vary significantly based on the complexity of the systems being supported, the number of personnel being trained, and the geographic locations involved. For instance, training on advanced fighter jets or complex naval systems would likely command higher annual values than training on more common ground equipment. Without specific details on the systems covered by this Boeing contract, a precise comparison is difficult. However, for specialized, long-term training and maintenance support for a significant defense platform, this value appears within a plausible range for a major defense contractor.

What are the primary risks associated with this contract for the Department of Defense?

The primary risks for the Department of Defense (DoD) in this contract revolve around potential cost overruns if the firm-fixed-price (FFP) structure is not managed effectively by the contractor, although FFP generally shifts cost risk to the contractor. Another risk is the potential for performance deficiencies; if Boeing fails to deliver adequate training or maintenance support, it could impact military readiness and operational effectiveness. Given the limited competition (only two bidders), there's also a risk that the DoD did not achieve the most competitive pricing possible. Finally, reliance on a single contractor for critical training and maintenance could pose a risk if unforeseen issues arise with Boeing's capacity or ability to perform over the five-year period.

How effective is the firm-fixed-price contract type in ensuring value for money for this type of service?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and the risks are understood. For augmented maintenance and training services, FFP provides cost certainty to the government, as the price is fixed regardless of the contractor's actual costs. This incentivizes the contractor to manage its expenses efficiently. However, if the scope is not precisely defined or if unforeseen technical challenges arise, the contractor might build in significant contingency into the price, potentially leading to a higher initial cost than other contract types. The effectiveness hinges on the thoroughness of the initial requirements definition and the contractor's ability to execute within the agreed-upon price.

What are the historical spending patterns for augmented maintenance and training services by the Department of Defense?

Historical spending patterns for augmented maintenance and training services by the Department of Defense are substantial and tend to increase with the introduction of new technologies and platforms. The DoD consistently allocates significant portions of its budget to ensure personnel are proficient in operating and maintaining complex military equipment. Spending in this category is influenced by defense modernization efforts, geopolitical factors requiring increased readiness, and the lifecycle of various weapon systems. Contracts for these services are often long-term, awarded through competitive processes, and can range from millions to billions of dollars depending on the scale and criticality of the systems involved. Analyzing past DoD budgets and contract awards would reveal trends in specific service areas and major contractors.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001908R0060

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Boeing Company (UEI: 009256819)

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,664,166

Exercised Options: $23,164,166

Current Obligation: $22,694,084

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline