DoD awards Boeing $3.2M for SLAP/SLEP RDT&E, raising questions on competition and value
Contract Overview
Contract Amount: $3,225,223 ($3.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-09-28
End Date: 2027-04-21
Contract Duration: 1,301 days
Daily Burn Rate: $2.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THE PURPOSE OF THIS TASK ORDER UNDER CONTRACT N0001920D0051 IS TO ESTABLISH AND FUND RDT&E CLIN 0002 FOR G SLAP 7 SLAPWORKS TASKING UNDER THE SLAP/SLEP IDIQ (RDT&E)
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $3.2 million to THE BOEING COMPANY for work described as: THE PURPOSE OF THIS TASK ORDER UNDER CONTRACT N0001920D0051 IS TO ESTABLISH AND FUND RDT&E CLIN 0002 FOR G SLAP 7 SLAPWORKS TASKING UNDER THE SLAP/SLEP IDIQ (RDT&E) Key points: 1. Significant RDT&E funding for a specific program (SLAP/SLEP). 2. Sole-source award to Boeing, limiting competitive pricing. 3. Potential for cost overruns given Cost Plus Fixed Fee contract type. 4. Engineering services sector, often complex and high-value.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type for RDT&E can lead to cost overruns if not closely managed. Benchmarking against similar RDT&E contracts for advanced engineering services is difficult without more detailed scope information.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This task order was not competed, indicating a sole-source award. This lack of competition limits price discovery and may result in a higher cost to the government than if multiple vendors had bid.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price for these engineering services.
Public Impact
Taxpayers fund advanced R&D for defense systems. Potential for long-term sustainment and upgrade contracts stemming from this RDT&E. Focus on a specific technology (SLAP/SLEP) may have broader defense implications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Limited transparency on RDT&E specifics
Positive Signals
- Established contractor (Boeing)
- Clear RDT&E purpose
Sector Analysis
This award falls under Engineering Services (NAICS 541330), a sector characterized by high technical expertise and significant government spending, particularly in defense. Benchmarks for RDT&E in this sector vary widely based on project complexity.
Small Business Impact
The awardee is The Boeing Company, a large aerospace corporation. There is no indication that small businesses were involved in this specific task order, either as prime contractors or subcontractors.
Oversight & Accountability
The Department of the Navy awarded this task order under an existing IDIQ. Oversight will be critical to manage costs and ensure the RDT&E objectives are met effectively within the fixed fee.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns with Cost Plus Fixed Fee
- Limited public information on RDT&E scope
- Long contract duration (over 3 years)
Tags
engineering-services, department-of-defense, mo, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $3.2 million to THE BOEING COMPANY. THE PURPOSE OF THIS TASK ORDER UNDER CONTRACT N0001920D0051 IS TO ESTABLISH AND FUND RDT&E CLIN 0002 FOR G SLAP 7 SLAPWORKS TASKING UNDER THE SLAP/SLEP IDIQ (RDT&E)
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 $3.2 million.
What is the period of performance?
Start: 2023-09-28. End: 2027-04-21.
What specific RDT&E objectives does CLIN 0002 aim to achieve for the SLAP/SLEP program, and how do these align with broader defense modernization goals?
The specific RDT&E objectives for CLIN 0002 under the SLAP/SLEP program are not detailed in the provided data. However, RDT&E funding typically supports the research, development, testing, and evaluation of new technologies or improvements to existing systems. Alignment with defense modernization goals would depend on the strategic priorities of the Department of the Navy and the broader DoD.
Given the sole-source nature, what measures are in place to ensure Boeing's pricing is fair and reasonable for these engineering services?
For sole-source awards, agencies typically rely on contractor cost and pricing data, along with government cost analysis, to determine price reasonableness. This may involve detailed audits and negotiations. However, without competition, the government lacks the market-driven validation of price that a competitive bidding process provides.
How will the effectiveness of the RDT&E funded by this task order be measured, and what are the key performance indicators for success?
The effectiveness of RDT&E is typically measured against predefined technical milestones, performance metrics, and successful demonstration of capabilities. Key performance indicators would likely be established in the task order's statement of work, focusing on achieving specific research outcomes, technological advancements, or system readiness levels within the project timeline.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001919R0018
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: $3,242,013
Exercised Options: $3,242,013
Current Obligation: $3,225,223
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $673,784
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001920D0051
IDV Type: IDC
Timeline
Start Date: 2023-09-28
Current End Date: 2027-04-21
Potential End Date: 2027-04-21 00:00:00
Last Modified: 2026-01-13
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