Navy awards $35M Boeing contract for P-8A acoustics, software, and integration through 2026
Contract Overview
Contract Amount: $35,093,891 ($35.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-03-22
End Date: 2026-03-21
Contract Duration: 1,825 days
Daily Burn Rate: $19.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CORRECTIONS OF DEFICIENCIES IN SUPPORT OF P-8A INC 3 ACOUSTICS NRAAM AND MAC - TASKING INCLUDES SOFTWARE ENHANCEMENTS/IMPROVEMENTSENGINEERING/LOGISTICS ANALYSES AND EVALUATIONS AND INTEGRATION AND TEST ACTIVITY TO RESOLVE DEFICIENCIES.
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
Department of Defense obligated $35.1 million to THE BOEING COMPANY for work described as: CORRECTIONS OF DEFICIENCIES IN SUPPORT OF P-8A INC 3 ACOUSTICS NRAAM AND MAC - TASKING INCLUDES SOFTWARE ENHANCEMENTS/IMPROVEMENTSENGINEERING/LOGISTICS ANALYSES AND EVALUATIONS AND INTEGRATION AND TEST ACTIVITY TO RESOLVE DEFICIENCIES. Key points: 1. Contract focuses on critical P-8A Poseidon aircraft acoustic systems and software. 2. Boeing, the sole awardee, has a long history with the P-8A program. 3. High risk associated with sole-source awards and potential for cost overruns. 4. Spending falls within the broader aerospace and defense manufacturing sector.
Value Assessment
Rating: questionable
The $35 million contract value is significant for a task order. Without competitive bidding, it's difficult to assess if this price represents fair value compared to potential alternatives or previous similar work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Boeing. This limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.
Taxpayer Impact: The lack of competition for this contract raises concerns about optimal use of taxpayer funds, potentially leading to higher overall program costs.
Public Impact
Enhancements to the P-8A Poseidon, a key intelligence, surveillance, and reconnaissance (ISR) aircraft, will improve its operational capabilities. The contract supports critical software and engineering work, ensuring the aircraft remains technologically advanced. Long-term reliance on a single contractor for specialized aircraft components can create dependencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Potential for cost creep in Cost Plus Fixed Fee contracts.
- Long contract duration increases exposure to changing requirements or economic conditions.
Positive Signals
- Addresses critical deficiencies in a key defense asset.
- Leverages existing contractor expertise on the P-8A platform.
- Ensures continued modernization of vital ISR capabilities.
Sector Analysis
This contract falls under the aerospace and defense sector, specifically focusing on aircraft system manufacturing and support. Spending benchmarks for similar sole-source sole-source contracts for specialized aircraft modifications can vary widely, but significant values often warrant closer scrutiny.
Small Business Impact
There is no indication that small businesses are involved in this specific contract award. Sole-source awards often bypass the typical channels where small businesses might participate as subcontractors.
Oversight & Accountability
The Department of the Navy is responsible for oversight. Given the sole-source nature and cost-plus contract type, robust oversight is crucial to manage costs and ensure performance objectives are met.
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
- Sole-source award
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Lack of competitive pricing
- Long contract duration
Tags
search-detection-navigation-guidance-aer, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.1 million to THE BOEING COMPANY. CORRECTIONS OF DEFICIENCIES IN SUPPORT OF P-8A INC 3 ACOUSTICS NRAAM AND MAC - TASKING INCLUDES SOFTWARE ENHANCEMENTS/IMPROVEMENTSENGINEERING/LOGISTICS ANALYSES AND EVALUATIONS AND INTEGRATION AND TEST ACTIVITY TO RESOLVE DEFICIENCIES.
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 $35.1 million.
What is the period of performance?
Start: 2021-03-22. End: 2026-03-21.
What is the justification for not competing this contract, given the significant value and the potential for cost savings through competition?
The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. For this P-8A acoustics contract, the Navy likely cited Boeing's unique knowledge and integration experience with the platform as the primary reason. However, the absence of competition means taxpayers may not benefit from the most cost-effective solution available in the market.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for complex system enhancements?
CPFF contracts carry inherent risks for the government, primarily the potential for cost overruns. While the contractor's fee is fixed, the total cost of the project can escalate if the contractor incurs higher-than-expected expenses. This necessitates diligent government oversight to monitor costs, ensure efficiency, and prevent scope creep, which is particularly challenging with software enhancements and engineering analyses.
How will the effectiveness of these software enhancements and engineering analyses be measured to ensure they resolve the identified deficiencies?
Effectiveness will be measured through rigorous testing and evaluation activities outlined in the contract's statement of work. This includes integration and test activity specifically designed to validate that the software improvements and engineering solutions successfully address the acoustic deficiencies. Performance metrics and acceptance criteria should be clearly defined to ensure the delivered enhancements meet the required operational standards for the P-8A aircraft.
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
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 14441 ASTRONAUTICS LN, HUNTINGTON BEACH, CA, 92647
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: $44,919,787
Exercised Options: $39,449,023
Current Obligation: $35,093,891
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $129,438
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-03-22
Current End Date: 2026-03-21
Potential End Date: 2026-03-21 00:00:00
Last Modified: 2026-01-15
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