Navy's $24.6M MUOS Ground Site Build Awarded to Boeing Defence Australia, Lacking Competition

Contract Overview

Contract Amount: $24,571,885 ($24.6M)

Contractor: Boeing Defence Australia Ltd

Awarding Agency: Department of Defense

Start Date: 2008-03-03

End Date: 2011-10-01

Contract Duration: 1,307 days

Daily Burn Rate: $18.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST SHARING

Sector: IT

Official Description: GERALDTON GROUND SITE BUILD FOR MUOS

Plain-Language Summary

Department of Defense obligated $24.6 million to BOEING DEFENCE AUSTRALIA LTD for work described as: GERALDTON GROUND SITE BUILD FOR MUOS Key points: 1. Significant investment in satellite telecommunications infrastructure. 2. Sole-source award to Boeing Defence Australia raises questions about price discovery. 3. Long contract duration of 1307 days suggests complex project execution. 4. Potential for cost overruns given the 'COST SHARING' contract type.

Value Assessment

Rating: questionable

The contract type is 'COST SHARING', which inherently carries higher risk for the government. Without competitive bidding, it's difficult to assess if the $24.6M price reflects fair market value. The awarded amount is also significantly higher than the initial baseline of $18.8M.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for a $24.6M contract means taxpayers may have paid a premium compared to a competitively bid scenario.

Public Impact

Enhances critical satellite communication capabilities for the Department of Defense. Supports advanced technology deployment for national security interests. Potential for long-term operational benefits from improved infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost sharing contract type
Significant cost increase from baseline

Positive Signals

Supports critical defense infrastructure
Long-term strategic asset

Sector Analysis

This contract falls within the IT and Defense sectors, specifically related to satellite telecommunications. Spending in this area is crucial for modern military operations, but often involves high costs due to specialized technology and R&D.

Small Business Impact

There is no indication that small businesses were involved in this contract, as it was awarded sole-source to a large prime contractor.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government received fair value. Further oversight would be needed to track cost performance under the cost-sharing agreement.

Related Government Programs

Satellite Telecommunications
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Cost sharing contract
Significant cost increase from baseline
Lack of transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.6 million to BOEING DEFENCE AUSTRALIA LTD. GERALDTON GROUND SITE BUILD FOR MUOS

Who is the contractor on this award?

The obligated recipient is BOEING DEFENCE AUSTRALIA LTD.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $24.6 million.

What is the period of performance?

Start: 2008-03-03. End: 2011-10-01.

What was the justification for awarding this contract sole-source?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this information, it's impossible to fully assess the necessity of bypassing competition.

How did the final cost compare to the initial baseline, and what factors contributed to the difference?

The awarded amount of $24.6M significantly exceeded the baseline of $18.8M, representing a substantial increase. The 'COST SHARING' contract type suggests that actual costs incurred by the contractor were shared with the government, potentially leading to cost growth if the contractor's expenses were higher than anticipated or if scope changes occurred.

What are the long-term operational implications of this ground site build for the MUOS system?

This ground site build is essential for the functionality of the Mobile User Objective System (MUOS), a next-generation secure satellite communications system. Its successful completion is critical for providing robust, high-bandwidth communications to warfighters globally, enhancing situational awareness and command and control capabilities.

Industry Classification

NAICS: Information › Satellite Telecommunications › Satellite Telecommunications

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 SHARING (T)

Evaluated Preference: NONE

Contractor Details

Address: 363 ADELAIDE ST, BRISBANE

Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $24,571,885

Exercised Options: $24,571,885

Current Obligation: $24,571,885

Contract Characteristics

Cost or Pricing Data: NO

Timeline