DoD awards Boeing $22.6M for DFIRS obsolescence upgrade, addressing memory and beacon needs
Contract Overview
Contract Amount: $22,620,121 ($22.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-05-18
End Date: 2022-02-07
Contract Duration: 1,361 days
Daily Burn Rate: $16.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCUREMENT OF NON-RECURRING ENGINEERING (NRE) REQUIRED FOR THE REDESIGN OF THE DATA BUS INTERFACE UNIT (DBIU) AND THE DEPLOYABLE FLIGHT INCIDENT RECORDER (DFIR) OF THE DEPLOYABLE FLIGHT INCIDENT RECORDING SET (DFIRS) TO ADDRESS OBSOLESCENCE ISSUES, AS WELL AS PROVIDE FOR ADDITIONAL MEMORY AND A 406 MHZ BEACON CAPABILITY IN ACCORDANCE WITH ENGINEERING CHANGE PROPOSAL (ECP) 6273, "DEPLOYABLE FLIGHT INCIDENT RECORDING SET (DFIRS) OBSOLESCENCE UPGRADE".
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $22.6 million to THE BOEING COMPANY for work described as: PROCUREMENT OF NON-RECURRING ENGINEERING (NRE) REQUIRED FOR THE REDESIGN OF THE DATA BUS INTERFACE UNIT (DBIU) AND THE DEPLOYABLE FLIGHT INCIDENT RECORDER (DFIR) OF THE DEPLOYABLE FLIGHT INCIDENT RECORDING SET (DFIRS) TO ADDRESS OBSOLESCENCE ISSUES, AS WELL AS PROVIDE FOR ADDITIO… Key points: 1. Contract addresses critical obsolescence in flight recorders, ensuring continued operational capability. 2. Sole-source award to Boeing, the original equipment manufacturer, for specialized NRE. 3. Risk of limited competition due to specialized nature of the upgrade. 4. Spending falls within the Aircraft Manufacturing sector, with significant government investment.
Value Assessment
Rating: fair
The $22.6 million award for Non-Recurring Engineering (NRE) is for a specific upgrade. Benchmarking is difficult without comparable NRE contracts for similar complex aerospace systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to the specialized nature of the work and Boeing's proprietary knowledge of the DFIRS system. This limits price discovery and potentially increases costs.
Taxpayer Impact: Taxpayers bear the full cost of this sole-source NRE contract, with limited opportunity for competitive pricing to reduce the burden.
Public Impact
Enhances aviation safety by upgrading critical flight recording equipment. Addresses obsolescence, preventing potential mission failures due to outdated technology. Incorporates new features like increased memory and a 406 MHz beacon for improved data retrieval. Supports military readiness by ensuring reliable data for accident investigations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- High NRE cost for a single system upgrade.
- Potential for cost overruns in complex engineering projects.
Positive Signals
- Addresses critical obsolescence.
- Improves system functionality with new features.
- Ensures continued operational capability for vital equipment.
Sector Analysis
This contract falls under the Aircraft Manufacturing sector, which often involves high-value, specialized procurements for defense systems. Benchmarks for NRE on complex avionics can vary widely.
Small Business Impact
The contract was awarded to The Boeing Company, a large aerospace manufacturer. There is no indication of small business participation in this specific sole-source NRE award.
Oversight & Accountability
The award was a delivery order under an existing contract. Oversight would focus on managing the NRE effort, ensuring milestones are met, and controlling costs within the fixed-price structure.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- High non-recurring engineering costs
- Potential for schedule delays in complex R&D
- Dependency on a single vendor for critical technology
Tags
aircraft-manufacturing, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.6 million to THE BOEING COMPANY. PROCUREMENT OF NON-RECURRING ENGINEERING (NRE) REQUIRED FOR THE REDESIGN OF THE DATA BUS INTERFACE UNIT (DBIU) AND THE DEPLOYABLE FLIGHT INCIDENT RECORDER (DFIR) OF THE DEPLOYABLE FLIGHT INCIDENT RECORDING SET (DFIRS) TO ADDRESS OBSOLESCENCE ISSUES, AS WELL AS PROVIDE FOR ADDITIONAL MEMORY AND A 406 MHZ BEACON CAPABILITY IN ACCORDANCE WITH ENGINEERING CHANGE PROPOSAL (ECP) 6273, "DEPLOYABLE FLIGHT INCIDENT RECORDING SET (DFIRS) OBSOLESCENCE UPGRADE".
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 $22.6 million.
What is the period of performance?
Start: 2018-05-18. End: 2022-02-07.
What is the long-term cost-benefit of this obsolescence upgrade compared to potential future system replacements?
The long-term cost-benefit hinges on the extended lifespan and improved reliability gained from the upgrade versus the cost of a complete system replacement. While this NRE addresses immediate obsolescence and adds functionality, a full replacement might offer greater technological advancements. A detailed lifecycle cost analysis would be needed to definitively assess the long-term value.
What are the risks associated with relying solely on Boeing for this critical component's redesign?
The primary risk is the lack of competitive pressure, potentially leading to higher costs and less incentive for maximum efficiency. Dependence on a single vendor also creates a vulnerability if Boeing faces production issues or significant price increases in the future. Furthermore, it limits the government's options for future upgrades or modifications.
How effectively will the added memory and 406 MHz beacon capability improve data recovery and analysis post-incident?
The increased memory directly allows for longer flight data recording, providing a more comprehensive picture of events leading up to an incident. The 406 MHz beacon significantly enhances the ability to locate the recorder quickly after an event, especially in remote or challenging environments. These improvements are expected to substantially aid investigators in data retrieval and analysis.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $22,620,121
Exercised Options: $22,620,121
Current Obligation: $22,620,121
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $7,324,833
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001916G0001
IDV Type: BOA
Timeline
Start Date: 2018-05-18
Current End Date: 2022-02-07
Potential End Date: 2022-02-07 00:00:00
Last Modified: 2025-06-30
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