DoD awards $26.8M to Boeing for Engineering Services, a sole-source contract spanning 8 years
Contract Overview
Contract Amount: $26,818,246 ($26.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2002-02-01
End Date: 2010-03-31
Contract Duration: 2,980 days
Daily Burn Rate: $9.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
Department of Defense obligated $26.8 million to THE BOEING COMPANY for work described as: Key points: 1. Significant contract value awarded to a major defense contractor. 2. Sole-source award raises questions about competition and potential cost efficiencies. 3. Long contract duration suggests a sustained need for these engineering services. 4. The 'CA' status indicates a contract with potential for cost overruns.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to higher costs for the government as the contractor is reimbursed for actual costs plus a fixed fee. Without competitive bidding, it's difficult to benchmark pricing against similar services.
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 compared to a competitive process.
Taxpayer Impact: The lack of competition for a contract of this magnitude may result in the government paying more than necessary for engineering services, impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long-term nature of the contract could lock the government into a potentially inefficient pricing structure. Reliance on a single provider for critical engineering services could pose a risk if performance issues arise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration
- Lack of small business participation indicated
Positive Signals
- Award to a well-established and experienced contractor (Boeing)
- Contract addresses a critical need within the Department of Defense
Sector Analysis
Engineering services are crucial for defense projects, involving design, development, and testing. Spending in this sector can vary widely based on technological advancements and defense priorities. This contract's value is substantial for engineering services.
Small Business Impact
The data indicates that small businesses were not involved in this contract (sb: false). This sole-source award to a large corporation likely excluded opportunities for small business participation.
Oversight & Accountability
The 'CA' status suggests potential cost issues that warrant close oversight. The Department of Defense and the Defense Contract Management Agency should ensure rigorous monitoring of costs and performance to mitigate risks associated with this sole-source, CPFF contract.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns ('CA' status)
- Long contract duration
- No small business participation
Tags
engineering-services, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.8 million to THE BOEING COMPANY. See the official description on USAspending.
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 $26.8 million.
What is the period of performance?
Start: 2002-02-01. End: 2010-03-31.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further documentation, it's impossible to determine the specific rationale. However, sole-source contracts often bypass the price discovery benefits of competition, potentially leading to higher costs for the government and taxpayers.
How does the fixed fee in this Cost Plus Fixed Fee contract compare to industry standards for similar engineering services?
Assessing the fairness of the fixed fee in a CPFF contract requires detailed knowledge of the project scope, complexity, and associated risks. Benchmarking against similar sole-source contracts is challenging. However, the absence of competition means the government cannot leverage market forces to ensure the fee is competitive, potentially leading to an inflated cost.
What mechanisms are in place to ensure the effectiveness and efficiency of Boeing's engineering services under this long-term, sole-source contract?
Given the sole-source nature and CPFF structure, robust oversight is critical. This includes detailed performance metrics, regular progress reviews, and stringent cost controls by the contracting agency. The long duration necessitates continuous monitoring to ensure the services remain aligned with evolving defense needs and that costs are managed effectively.
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
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: 3370 E MIRALOMA AVE, ANAHEIM, CA, 92806
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2002-02-01
Current End Date: 2010-03-31
Potential End Date: 2010-03-31 00:00:00
Last Modified: 2024-04-14
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