Navy Awards $11.9M Contract to Boeing for P-8A Poseidon Airborne Weapons Simulator Software

Contract Overview

Contract Amount: $11,891,094 ($11.9M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2019-08-29

End Date: 2023-03-31

Contract Duration: 1,310 days

Daily Burn Rate: $9.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE PURPOSE OF THIS EFFORT IS TO PROCURE THE NECESSARY SUPPLIES AND SERVICES REQUIRED FOR THE DESIGN, ENGINEERING DEVELOPMENT, AND TEST OF THE AIRBORNE WEAPONS SIMULATOR (AWS) SOFTWARE AS INTEGRATED INTO THE NAVY P-8A POSEIDON AIRCRAFT.

Place of Performance

Location: TUKWILA, KING County, WASHINGTON, 98108

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $11.9 million to THE BOEING COMPANY for work described as: THE PURPOSE OF THIS EFFORT IS TO PROCURE THE NECESSARY SUPPLIES AND SERVICES REQUIRED FOR THE DESIGN, ENGINEERING DEVELOPMENT, AND TEST OF THE AIRBORNE WEAPONS SIMULATOR (AWS) SOFTWARE AS INTEGRATED INTO THE NAVY P-8A POSEIDON AIRCRAFT. Key points: 1. Boeing secured a significant contract for critical P-8A Poseidon aircraft software. 2. The contract focuses on design, engineering, development, and testing of the AWS. 3. This procurement is essential for enhancing the capabilities of the P-8A Poseidon. 4. The sole-source nature raises questions about potential cost efficiencies.

Value Assessment

Rating: questionable

The contract value of $11.9M for software development and testing is substantial. Without comparable contract data for similar simulator software development, it's difficult to definitively assess pricing. The Cost Plus Fixed Fee structure can lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive bidding process. The justification for sole-source is not provided.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this specialized software development.

Public Impact

Enhances critical training and mission readiness for the P-8A Poseidon fleet. Supports the operational effectiveness of a key naval surveillance and strike aircraft. Investment in advanced simulation technology for military aviation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price scrutiny.
Cost Plus Fixed Fee contract type can incentivize higher spending.
Lack of detailed performance metrics for the simulator software.

Positive Signals

Essential for P-8A Poseidon operational capabilities.
Supports advanced training and mission rehearsal.
Procurement of critical defense technology.

Sector Analysis

This contract falls within the Defense sector, specifically aircraft manufacturing and related software development. Spending in this area is driven by national security needs and technological advancements in military aviation platforms. Benchmarks for similar software development contracts are often proprietary or difficult to access due to national security classifications.

Small Business Impact

The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data. Efforts to include small businesses in sole-source procurements are often limited.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The Cost Plus Fixed Fee structure requires diligent oversight to ensure costs are reasonable and the fixed fee is earned. Transparency regarding the justification for the sole-source award and performance metrics would enhance accountability.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award lacks competitive pricing.
Cost Plus Fixed Fee contract type carries inherent cost escalation risk.
Potential for contractor to maximize profit through cost incurrence.
Lack of transparency regarding justification for sole-source.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.9 million to THE BOEING COMPANY. THE PURPOSE OF THIS EFFORT IS TO PROCURE THE NECESSARY SUPPLIES AND SERVICES REQUIRED FOR THE DESIGN, ENGINEERING DEVELOPMENT, AND TEST OF THE AIRBORNE WEAPONS SIMULATOR (AWS) SOFTWARE AS INTEGRATED INTO THE NAVY P-8A POSEIDON AIRCRAFT.

Who is the contractor on this award?

The obligated recipient is THE BOEING COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.9 million.

What is the period of performance?

Start: 2019-08-29. End: 2023-03-31.

What is the specific justification for awarding this contract on a sole-source basis, and were any alternatives explored?

The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs. Exploring alternatives, even if ultimately deemed unsuitable, is a standard part of procurement processes to ensure best value.

How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns and ensure fair pricing for the government?

Effective management of a Cost Plus Fixed Fee contract requires robust oversight from the contracting agency. This includes detailed review of incurred costs, verification that costs are allowable and reasonable, and ensuring the contractor meets all performance requirements to earn the fixed fee. Clear performance metrics and regular progress reviews are crucial to control spending and ensure the final cost aligns with the value delivered.

What are the key performance indicators (KPIs) for the Airborne Weapons Simulator software, and how will their achievement be measured?

The provided data does not specify the key performance indicators for the AWS software or the methods for measuring their achievement. In a development contract like this, KPIs would typically relate to functionality, accuracy, integration with the P-8A systems, reliability, and adherence to design specifications. The contracting officer and technical team would establish these metrics and monitor progress against them throughout the development and testing phases.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $11,891,094

Exercised Options: $11,891,094

Current Obligation: $11,891,094

Actual Outlays: $5,651,074

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