Boeing awarded $10.2M for NTWL Baseline Task Order 2 by Department of the Navy
Contract Overview
Contract Amount: $10,234,512 ($10.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-05-01
End Date: 2025-04-30
Contract Duration: 364 days
Daily Burn Rate: $28.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NTWL BASELINE TASK ORDER 2
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $10.2 million to THE BOEING COMPANY for work described as: NTWL BASELINE TASK ORDER 2 Key points: 1. Contract value represents a significant investment in ongoing support activities. 2. Sole-source award suggests limited market alternatives or specific contractor capabilities. 3. Performance period of one year indicates a focused scope of work. 4. Cost-plus-fixed-fee structure allows for cost reimbursement plus a predetermined profit. 5. The contract falls under 'Other Support Activities for Air Transportation', a broad category. 6. Geographic focus on Maryland suggests a specific operational or logistical hub.
Value Assessment
Rating: fair
Benchmarking the value of this specific task order is challenging without more detailed cost breakdowns or comparable contract data. The 'Other Support Activities for Air Transportation' category is broad, making direct comparisons difficult. The cost-plus-fixed-fee (CPFF) pricing structure means the government reimburses allowable costs plus a fixed fee, which can lead to cost overruns if not managed tightly. Without insight into the specific services rendered and their market rates, assessing true value-for-money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means the government did not benefit from a competitive bidding process, which could potentially lead to higher prices than if multiple offers were considered.
Taxpayer Impact: Sole-source awards limit opportunities for other businesses and may result in less favorable pricing for taxpayers due to the absence of competitive pressure.
Public Impact
The Department of the Navy benefits from continued support for air transportation activities. Services delivered are likely critical for maintaining operational readiness and logistical capabilities. The geographic impact is concentrated in Maryland, potentially supporting local military installations or operations. Workforce implications may include continued employment for personnel involved in air transportation support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about potential overpricing and limited innovation.
- Cost-plus-fixed-fee contracts require robust oversight to prevent cost creep.
- The broad nature of 'Other Support Activities for Air Transportation' could obscure specific performance issues.
Positive Signals
- Award to a major defense contractor like Boeing suggests a high level of trust and established relationship.
- The fixed fee component of the CPFF contract provides some level of cost predictability for profit.
- The contract is for a defined period, allowing for re-evaluation of requirements and competition in the future.
Sector Analysis
The aerospace and defense sector is characterized by high barriers to entry, significant R&D investment, and long-term government contracts. 'Other Support Activities for Air Transportation' falls within this broad sector, encompassing services that facilitate the operation and maintenance of air assets. Spending in this area is crucial for national security and defense readiness. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the support, but large contracts are common for major defense platforms and associated services.
Small Business Impact
This contract does not appear to have a small business set-aside component, nor is there information indicating significant subcontracting opportunities for small businesses. The award to a large prime contractor like Boeing suggests that the primary focus is on direct service delivery by the prime or its large subcontractors. This may limit direct opportunities for small businesses within this specific contract vehicle.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a cost-plus-fixed-fee contract, rigorous financial oversight is essential to ensure costs are allowable and reasonable, and that the fixed fee is earned appropriately. Transparency is generally maintained through contract reporting mechanisms, though detailed cost breakdowns may be proprietary. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Logistics Support Contracts
- Air Mobility Command Services
- Naval Air Systems Command Support Contracts
- Aircraft Maintenance and Repair Services
Risk Flags
- Sole-source award limits competitive pricing.
- CPFF structure requires diligent cost oversight.
- Broad service category may obscure specific performance metrics.
Tags
defense, department-of-defense, department-of-the-navy, air-transportation-support, cost-plus-fixed-fee, sole-source, delivery-order, maryland, boeing, other-support-activities-for-air-transportation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.2 million to THE BOEING COMPANY. NTWL BASELINE TASK ORDER 2
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 $10.2 million.
What is the period of performance?
Start: 2024-05-01. End: 2025-04-30.
What specific air transportation support services are included under 'NTWL BASELINE TASK ORDER 2'?
The provided data does not detail the specific services covered under 'NTWL BASELINE TASK ORDER 2'. The contract falls under the broad category of 'Other Support Activities for Air Transportation'. This could encompass a wide range of services such as aircraft maintenance, logistical support, ground operations, training, technical support, or program management related to air assets. Without access to the contract's statement of work (SOW), a precise definition of the services is not possible. Further inquiry would require accessing the full contract documentation.
How does the $10.2 million value compare to previous task orders for NTWL Baseline?
The provided data only includes information for 'NTWL BASELINE TASK ORDER 2'. There is no historical data presented for previous task orders under the NTWL Baseline umbrella. Therefore, a direct comparison of the $10.2 million value to prior task orders cannot be made with the given information. To assess trends or changes in spending, historical contract awards for this baseline requirement would need to be analyzed.
What is the typical profit margin for Cost Plus Fixed Fee (CPFF) contracts in this sector?
Profit margins for Cost Plus Fixed Fee (CPFF) contracts can vary significantly based on the complexity of the work, the level of risk involved, and the specific agency's policies. Generally, the fixed fee is negotiated as a percentage of the estimated cost at the outset. For defense-related services, this fee might range from 5% to 15% of the estimated cost, though it can be higher or lower. The Department of Defense often aims for competitive fees that incentivize performance while ensuring fair compensation. Without knowing the estimated cost and the negotiated fee for this specific contract, a precise profit margin cannot be determined, but it would be a component of the total $10.2 million award.
What are the key performance indicators (KPIs) for this contract?
The provided data does not specify the Key Performance Indicators (KPIs) for this contract. For a CPFF contract, KPIs are crucial for measuring the contractor's performance against the agreed-upon objectives and ensuring value for money. These KPIs would typically be outlined in the contract's Statement of Work (SOW) and could relate to factors such as on-time delivery of services, quality of work, adherence to budget (for cost elements), operational availability, or specific technical performance metrics relevant to air transportation support. Robust oversight would involve tracking these KPIs.
Are there any known performance issues with The Boeing Company on similar Department of the Navy contracts?
Assessing specific performance issues with The Boeing Company on similar Department of the Navy contracts requires access to performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS) and historical contract data. While Boeing is a major defense contractor with a long history of work for the Navy, like any large entity, it may have faced challenges on specific programs. Without access to these detailed performance records, it is not possible to definitively state whether there are known performance issues relevant to this particular task order. General industry knowledge suggests that large, complex contracts can encounter various execution challenges.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0042123R0030
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: $10,737,022
Exercised Options: $10,479,204
Current Obligation: $10,234,512
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042124D0007
IDV Type: IDC
Timeline
Start Date: 2024-05-01
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2025-12-12
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