Boeing awarded $21.1M for PMA-273 program engineering, with contract performance extending over five years
Contract Overview
Contract Amount: $21,129,701 ($21.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-05-01
End Date: 2024-06-30
Contract Duration: 1,887 days
Daily Burn Rate: $11.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PMT # N61340-18-RFPREQ-PMA-273-0430 APN-5 PROGRAM ENGINEERING NRE IGF::CT::TGF
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $21.1 million to THE BOEING COMPANY for work described as: PMT # N61340-18-RFPREQ-PMA-273-0430 APN-5 PROGRAM ENGINEERING NRE IGF::CT::TGF Key points: 1. Contract value appears reasonable given the extended performance period and specialized nature of program engineering support. 2. The sole-source nature of this award limits opportunities for competitive pricing and potentially higher value. 3. Performance risk is moderate, given the long-term nature of the contract and the complexity of engineering services. 4. This contract supports critical aviation systems, indicating a strategic positioning within the defense sector. 5. The contract's duration suggests a stable, long-term requirement for these specialized engineering services.
Value Assessment
Rating: fair
The contract value of $21.1 million over approximately five years for program engineering NRE (Non-Recurring Engineering) is difficult to benchmark without specific details on the scope of work and labor categories. However, for specialized engineering services supporting complex defense programs, this amount may be within a reasonable range. Without comparable sole-source contracts or detailed cost breakdowns, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) structure means that while the contractor's fee is fixed, the total cost can vary, requiring close oversight to manage expenditures.
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. This typically occurs when only one responsible source can provide the required supplies or services. The lack of competition means that the government did not benefit from a bidding process that could drive down prices or encourage innovative solutions from multiple vendors. The justification for a sole-source award needs to be carefully scrutinized to ensure it is indeed the only viable option.
Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the most economical price is achieved. This also limits the opportunity for new or smaller businesses to enter the market and compete for this type of work.
Public Impact
The primary beneficiaries are the Department of the Navy and its aviation programs, which receive essential engineering support. Services delivered include program engineering, likely encompassing design, development, testing, and sustainment activities for aviation systems. The geographic impact is primarily centered in Missouri, where the contractor, The Boeing Company, is located. This contract supports a highly skilled engineering workforce within the aerospace and defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potential cost savings for the government.
- Cost-plus-fixed-fee contracts require diligent oversight to manage cost overruns.
- Long contract duration (over 5 years) increases exposure to potential scope creep or changing requirements.
- Lack of transparency in the sole-source justification could mask underlying issues.
- Dependence on a single contractor for critical engineering services poses a strategic risk.
Positive Signals
- Contract awarded to a well-established defense contractor with a proven track record.
- Long-term contract indicates a stable and ongoing need for these critical engineering services.
- Program engineering support is essential for the sustainment and advancement of complex aviation systems.
- Fixed fee component of the contract provides some cost predictability for the contractor's profit.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting aviation systems. The market for specialized program engineering services is dominated by large defense contractors. Spending in this area is driven by the need for advanced technological capabilities and the sustainment of complex military platforms. Comparable spending benchmarks are difficult to establish due to the proprietary nature of defense engineering and the unique requirements of each program.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, The Boeing Company, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Without such provisions, the direct impact on the small business ecosystem for this specific contract is likely minimal, though large prime contractors often engage small businesses in their supply chains.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy contracting and program management offices. Accountability measures would include performance reviews, milestone tracking, and financial audits, especially given the CPFF structure. Transparency is limited due to the sole-source nature and the classified or sensitive aspects of defense programs. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Naval Air Systems Command (NAVAIR) Contracts
- Defense Program Management Support
- Aerospace Engineering Services
- Cost Plus Fixed Fee Contracts
- Sole Source Defense Procurements
Risk Flags
- Sole Source Award
- Cost Plus Fixed Fee Structure
- Long Contract Duration
- Limited Competition
Tags
defense, department-of-defense, department-of-the-navy, program-engineering, aviation, sole-source, cost-plus-fixed-fee, large-business, missouri, long-term-contract, aerospace
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.1 million to THE BOEING COMPANY. PMT # N61340-18-RFPREQ-PMA-273-0430 APN-5 PROGRAM ENGINEERING NRE IGF::CT::TGF
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 $21.1 million.
What is the period of performance?
Start: 2019-05-01. End: 2024-06-30.
What is the specific justification for awarding this contract on a sole-source basis to The Boeing Company?
The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification, such as unique capabilities, proprietary technology, or lack of other responsible sources, is not detailed in the provided data. Typically, such justifications are documented in a Justification and Approval (J&A) document. Without access to the J&A, it's impossible to definitively state why competition was precluded. However, for complex, long-term engineering programs, sole-source awards are often made when a specific contractor possesses unique knowledge, intellectual property, or has been integral to the system's development, making them the only viable option for continued support.
How does the total contract value of $21.1 million compare to similar program engineering contracts for naval aviation systems?
Benchmarking this $21.1 million contract against similar program engineering contracts is challenging without more specific details on the scope of work, labor mix, and duration. However, for specialized engineering services supporting major defense platforms over a multi-year period (1887 days, approximately 5 years), this value appears to be within a plausible range. Large defense contractors like Boeing often command significant sums for their expertise in areas like PMA-273 (Program Management Air Systems). To provide a more accurate comparison, one would need to analyze contracts for similar engineering support on comparable naval aviation platforms, considering factors like system complexity, technology readiness level, and the specific engineering disciplines required (e.g., systems engineering, software engineering, mechanical engineering).
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of engineering service?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government bears the risk of cost overruns, while the contractor is guaranteed a fixed fee regardless of the actual costs incurred. For complex engineering services like those provided by Boeing under this contract, estimating all costs accurately upfront can be difficult. This can lead to the government paying more than anticipated if the contractor's actual costs exceed initial estimates. Effective oversight, detailed cost tracking, and robust performance metrics are crucial to mitigate this risk and ensure the contractor exercises cost control. The fixed fee provides an incentive for the contractor to complete the work, but not necessarily to do so in the most cost-efficient manner beyond what is required to meet the contract terms.
What is the historical spending pattern for program engineering support related to PMA-273 or similar naval aviation programs?
Historical spending data for program engineering support related to PMA-273 or similar naval aviation programs is not directly available in the provided data snippet. However, the duration of this contract (ending June 30, 2024, with a start date of May 1, 2019) suggests a sustained, long-term requirement for these services. Naval aviation programs often involve extensive engineering lifecycles, from initial development through sustainment and upgrades, which necessitates continuous engineering support. Annual spending on such programs can range from millions to hundreds of millions of dollars, depending on the program's phase, complexity, and the number of systems involved. A deeper analysis would require accessing historical contract databases for NAVAIR and related program offices.
What is the track record of The Boeing Company in delivering program engineering services for the Department of Defense?
The Boeing Company has a long and extensive track record of delivering a wide range of defense systems and services to the Department of Defense, including significant contributions to naval aviation. They are a major prime contractor for numerous complex platforms and associated support services. Their experience spans decades, encompassing aircraft design, development, production, sustainment, and modernization. While specific performance metrics for this particular contract (N61340-18-RFPREQ-PMA-273-0430) are not detailed here, Boeing's overall reputation in the defense sector is that of a capable, albeit sometimes costly, provider of advanced aerospace solutions. Past performance reviews and contract award histories would provide more granular insights into their specific success rates and any past issues.
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: N6134019R0057
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS 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: $21,129,701
Exercised Options: $21,129,701
Current Obligation: $21,129,701
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $928,448
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N6134019D0003
IDV Type: IDC
Timeline
Start Date: 2019-05-01
Current End Date: 2024-06-30
Potential End Date: 2024-06-30 00:00:00
Last Modified: 2025-06-27
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