Navy Awards $7.6M Contract to Boeing for RAAF Engineering and Software Support
Contract Overview
Contract Amount: $7,600,824 ($7.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2026-01-01
End Date: 2026-01-30
Contract Duration: 29 days
Daily Burn Rate: $262.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: RAAF UNIQUE INT, ENG, AND SOFTWARE SUPP.
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $7.6 million to THE BOEING COMPANY for work described as: RAAF UNIQUE INT, ENG, AND SOFTWARE SUPP. Key points: 1. Boeing secured a significant contract for specialized RAAF support. 2. The contract value is $7.6 million, with a duration of 29 days. 3. This is a sole-source award, raising questions about competition. 4. The sector is Engineering Services, crucial for defense readiness.
Value Assessment
Rating: questionable
The contract value of $7.6 million for a 29-day period suggests a high daily rate. Without specific deliverables or benchmarks for RAAF unique engineering and software support, it's difficult to assess value for money. Comparison to similar specialized support contracts is needed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method limits price discovery and may result in higher costs for taxpayers compared to a fully competed procurement.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competition.
Public Impact
Taxpayers may be overpaying due to the lack of competition. The specialized nature of the support could be critical for RAAF operations. Transparency in sole-source justifications is important for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- High daily rate potential given the short duration and contract value.
- Lack of detailed justification for sole-source award.
Positive Signals
- Award to a known, established contractor (Boeing).
- Supports critical RAAF unique requirements.
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector vital for defense operations. Spending in this area often involves highly specialized knowledge and can be subject to sole-source awards when unique capabilities are required. Benchmarks for such specialized support are difficult to establish.
Small Business Impact
The contract was awarded to The Boeing Company, a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the justification is sound and that the pricing is fair. Accountability for the decision to not compete the contract is essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing due to no competitive bidding.
- High daily rate indicated by contract value and duration.
- Limited transparency on the justification for sole-source.
- Short contract duration may indicate urgent need or interim solution.
Tags
engineering-services, department-of-defense, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.6 million to THE BOEING COMPANY. RAAF UNIQUE INT, ENG, AND SOFTWARE SUPP.
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 $7.6 million.
What is the period of performance?
Start: 2026-01-01. End: 2026-01-30.
What specific RAAF unique engineering and software capabilities does Boeing provide under this contract, and how do these justify a sole-source award?
The justification for a sole-source award typically rests on unique capabilities, proprietary knowledge, or critical urgency that only one contractor can meet. For this contract, the 'RAAF UNIQUE INT, ENG, AND SOFTWARE SUPP.' suggests highly specialized, potentially classified or proprietary, support essential for the Royal Australian Air Force's operations. Without further details on the specific nature of these 'unique' requirements, it's challenging to definitively assess the validity of the sole-source justification and its impact on value for money.
Given the $7.6 million value and 29-day duration, what is the estimated daily cost, and how does this compare to industry benchmarks for similar specialized engineering support?
The estimated daily cost is approximately $262,097 ($7,600,823.63 / 29 days). This rate appears high when compared to general engineering services. However, 'RAAF UNIQUE INT, ENG, AND SOFTWARE SUPP.' implies highly specialized, potentially mission-critical support that commands a premium. Benchmarking is difficult without knowing the exact nature of the services, required expertise, and any associated security or operational demands.
What measures are in place to ensure effective oversight and accountability for this sole-source contract, particularly regarding performance and cost control?
Effective oversight for sole-source contracts typically involves rigorous contract management, including detailed performance monitoring against defined milestones and deliverables, regular cost reviews, and independent technical assessments. Accountability is ensured through contract clauses that allow for termination for default or convenience, penalties for non-performance, and mandatory reporting requirements. The Department of the Navy should have established procedures to track progress and expenditures closely.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001923R0008
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JAMES S 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: $7,600,824
Exercised Options: $7,600,824
Current Obligation: $7,600,824
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001924D0128
IDV Type: IDC
Timeline
Start Date: 2026-01-01
Current End Date: 2026-01-30
Potential End Date: 2026-01-30 00:00:00
Last Modified: 2025-12-23
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