DoD awards Boeing $168M R&D contract for physical sciences research, awarded via full and open competition
Contract Overview
Contract Amount: $168,373,480 ($168.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2008-07-22
End Date: 2012-09-30
Contract Duration: 1,531 days
Daily Burn Rate: $110.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 81-5033-08
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
Department of Defense obligated $168.4 million to THE BOEING COMPANY for work described as: 81-5033-08 Key points: 1. Contract awarded to a single, large prime contractor. 2. Research and Development in Physical, Engineering, and Life Sciences sector. 3. Cost Plus Fixed Fee contract type carries inherent cost escalation risk. 4. No small business participation noted.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs compared to fixed-price contracts. Without specific benchmarks for similar R&D efforts, assessing the pricing efficiency is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the CPFF structure may limit price discovery and incentivize cost increases.
Taxpayer Impact: Taxpayer funds are used for R&D, with potential for cost overruns due to the CPFF structure. The value to taxpayers depends on the successful outcome of the research.
Public Impact
Significant investment in advanced physical sciences research. Potential for technological advancements with broad applications. Contract duration of over 4 years indicates a substantial research effort.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- No small business participation
- Long contract duration
Positive Signals
- Full and open competition
- Awarded to a major defense contractor
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is critical for technological advancement but can be subject to cost volatility.
Small Business Impact
The contract data indicates no small business participation. This suggests that the scope of work may have been beyond the capabilities or interests of small businesses, or that outreach was insufficient.
Oversight & Accountability
Oversight is managed by the Defense Contract Management Agency. The CPFF structure necessitates robust oversight to control costs and ensure research objectives are met efficiently.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost overrun potential due to CPFF
- Lack of small business participation
- Long contract duration may increase risk
- R&D outcomes are inherently uncertain
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $168.4 million to THE BOEING COMPANY. 81-5033-08
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 $168.4 million.
What is the period of performance?
Start: 2008-07-22. End: 2012-09-30.
What specific R&D outcomes were achieved, and did they justify the $168 million investment?
The effectiveness of this R&D investment hinges on the tangible outcomes and their impact on national security or technological advancement. Without detailed reports on deliverables and their subsequent application or benefits, it's difficult to definitively assess the value for money. Further analysis would require access to project reports and performance metrics.
What were the primary risks associated with this Cost Plus Fixed Fee contract, and how were they mitigated?
The primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. Mitigation strategies typically involve stringent oversight, detailed cost tracking, and clear performance metrics. The effectiveness of these measures would depend on the rigor of the Defense Contract Management Agency's monitoring.
How did the full and open competition process ensure the best possible price and technical solution for the government?
Full and open competition theoretically allows multiple bidders to propose solutions, fostering a competitive environment that drives down prices and encourages innovation. However, the CPFF structure can temper price competition. The government likely assessed proposals based on both technical merit and projected costs, aiming for the best value, though the inherent nature of CPFF limits upfront price certainty.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 5301 BOLSA AVENUE, HUNTINGTON BEACH, CA, 92647
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $168,373,480
Exercised Options: $168,373,480
Current Obligation: $168,373,480
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-07-22
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2018-01-18
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)