Boeing Awarded $288M for NGJ Integration, Raising Questions on Competition and Value
Contract Overview
Contract Amount: $288,147,521 ($288.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2016-04-07
End Date: 2025-10-31
Contract Duration: 3,494 days
Daily Burn Rate: $82.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: IT
Official Description: PRELIMINARY WORK FOR NGJ INTEGRATION IGF::OT::IGF
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $288.1 million to THE BOEING COMPANY for work described as: PRELIMINARY WORK FOR NGJ INTEGRATION IGF::OT::IGF Key points: 1. Significant contract value of $288M for a complex integration project. 2. Sole-source award to Boeing suggests limited competition and potential for higher costs. 3. Long contract duration (2016-2025) warrants close monitoring for scope creep and efficiency. 4. Focus on advanced navigation and guidance systems highlights critical defense capabilities.
Value Assessment
Rating: questionable
The $288M contract value for preliminary work on NGJ integration is substantial. Without competitive bidding, it's difficult to assess if this price reflects fair market value compared to similar complex system integration projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Boeing. This lack of competition limits price discovery and may result in less favorable terms for the government.
Taxpayer Impact: The absence of competition raises concerns about taxpayer value, as a more competitive process could potentially lead to cost savings.
Public Impact
Impacts advanced military navigation and guidance systems, crucial for national security. Long-term commitment to a single contractor may stifle innovation from other industry players. Taxpayers bear the cost of a non-competitive award, potentially overpaying for services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- High contract value
- Long contract duration
- Lack of transparency in pricing
Positive Signals
- Supports critical defense capabilities
- Established contractor with relevant expertise
Sector Analysis
This contract falls within the IT and Defense sectors, specifically related to advanced navigation and guidance systems. Spending benchmarks for such specialized integration work are hard to establish without competitive data, but $288M is a significant investment.
Small Business Impact
The contract was awarded to a large prime contractor, Boeing. There is no indication of subcontracting opportunities for small businesses in the provided data, which is a missed opportunity for economic inclusion.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure the government receives fair value and that the project stays within scope and budget. Accountability for performance and cost management is paramount.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- High contract value
- Long contract duration
- Potential for cost overruns
- Limited transparency
Tags
search-detection-navigation-guidance-aer, department-of-defense, mo, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $288.1 million to THE BOEING COMPANY. PRELIMINARY WORK FOR NGJ INTEGRATION IGF::OT::IGF
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 $288.1 million.
What is the period of performance?
Start: 2016-04-07. End: 2025-10-31.
What specific factors justified the sole-source award to Boeing for this critical NGJ integration work, and were alternatives thoroughly explored?
Justification for sole-source awards typically involves unique capabilities, urgent needs, or lack of viable alternatives. For this NGJ integration, the government likely cited Boeing's proprietary knowledge or existing platform integration expertise. However, a thorough review of market research and documented reasons for excluding other potential bidders is essential to confirm alternatives were indeed explored and deemed unsuitable.
How will the government ensure cost-effectiveness and prevent potential overruns given the $288M value and lack of competitive pressure?
To ensure cost-effectiveness without competition, the government must implement stringent cost controls, detailed performance metrics, and regular audits. This includes negotiating firm-fixed-price elements where possible, establishing clear milestones tied to payments, and actively managing scope changes. Independent cost analysis and benchmarking against similar projects, even if not directly comparable, can provide some reference points for value.
What are the long-term implications for technological advancement and potential future competition if a single contractor dominates such critical integration efforts?
Long-term reliance on a single contractor can stifle innovation by creating a barrier to entry for competitors and potentially leading to complacency. This can result in higher costs and slower adoption of new technologies. To mitigate this, the government should actively seek opportunities to foster competition through modular design, open architecture principles, and by encouraging knowledge transfer to ensure future integration efforts are not solely dependent on incumbent expertise.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001916R0032
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS 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: $341,821,100
Exercised Options: $341,821,100
Current Obligation: $288,147,521
Actual Outlays: $25,812,449
Subaward Activity
Number of Subawards: 60
Total Subaward Amount: $72,664,989
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-04-07
Current End Date: 2025-10-31
Potential End Date: 2025-10-31 00:00:00
Last Modified: 2025-08-27
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