DoD Awards $86.9M to Boeing for Wideband Satellite Communications Certification and Installs

Contract Overview

Contract Amount: $86,914,017 ($86.9M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2019-04-11

End Date: 2023-12-04

Contract Duration: 1,698 days

Daily Burn Rate: $51.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: WIDEBAND SATELLITE COMMUNICATIONS AIRWORTHINESS CERTIFICATION, A-KITS, AND INSTALLS.

Place of Performance

Location: TUKWILA, KING County, WASHINGTON, 98108

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $86.9 million to THE BOEING COMPANY for work described as: WIDEBAND SATELLITE COMMUNICATIONS AIRWORTHINESS CERTIFICATION, A-KITS, AND INSTALLS. Key points: 1. Significant contract value for specialized aerospace services. 2. Sole-source award to Boeing raises questions about competition. 3. Potential for cost overruns given Cost Plus Fixed Fee structure. 4. Focus on critical defense communication infrastructure.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price contracts, especially without strong oversight. Benchmarking is difficult without more detailed cost breakdowns.

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 taxpayers.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these critical satellite communication services.

Public Impact

Ensures critical wideband satellite communication capabilities for the Department of Defense. Supports advanced aerospace manufacturing and integration services. Impacts national security by maintaining vital communication links.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Fixed Fee contract type
No small business participation

Positive Signals

Critical defense capability
Experienced contractor

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on advanced communication systems. Spending in this area is crucial for national security but requires careful management due to high costs and technological complexity.

Small Business Impact

The data indicates no small business participation in this contract, which is a missed opportunity for economic inclusion and potentially for accessing specialized services.

Oversight & Accountability

The Cost Plus Fixed Fee structure necessitates robust oversight from the Defense Contract Management Agency to ensure costs are reasonable and the work is performed efficiently.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competition.
Cost Plus Fixed Fee contract type increases cost risk.
No small business participation.
Potential for cost overruns without strong oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $86.9 million to THE BOEING COMPANY. WIDEBAND SATELLITE COMMUNICATIONS AIRWORTHINESS CERTIFICATION, A-KITS, AND INSTALLS.

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 $86.9 million.

What is the period of performance?

Start: 2019-04-11. End: 2023-12-04.

What is the justification for the sole-source award, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or urgent needs. Without further details, it's difficult to assess the fairness of the pricing. The government should have conducted a thorough price analysis to ensure the negotiated price was reasonable given the circumstances.

How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns and ensure value for money?

Managing a Cost Plus Fixed Fee contract requires stringent oversight, detailed cost tracking, and regular audits. The contracting agency must actively monitor expenditures, validate costs, and ensure the contractor is incentivized to control expenses while meeting performance requirements.

What is the long-term strategy for ensuring competitive sourcing of future wideband satellite communication needs?

To ensure competitive sourcing in the future, the agency should explore breaking down requirements into smaller, more manageable components that could attract a wider range of bidders. Conducting market research to identify potential new entrants and developing clear, performance-based specifications are also crucial steps.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

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: $106,215,478

Exercised Options: $106,215,478

Current Obligation: $86,914,017

Actual Outlays: $15,722,539

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $1,267,958

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