DoD Awards Boeing $23.2M for Cyber and Physical Security Services for Training Devices
Contract Overview
Contract Amount: $23,197,483 ($23.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-03-03
End Date: 2027-03-03
Contract Duration: 1,826 days
Daily Burn Rate: $12.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CYBER SECURITY SERVICES TO INCLUDE PHYSICAL SECURITY, CYBER SECURITY UPDATES, AND SCHEDULED AND UNSCHEDULED MAINTENANCE FOR THE DEVELOPMENTAL TRAINING DEVICES ON-SITE.
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $23.2 million to THE BOEING COMPANY for work described as: CYBER SECURITY SERVICES TO INCLUDE PHYSICAL SECURITY, CYBER SECURITY UPDATES, AND SCHEDULED AND UNSCHEDULED MAINTENANCE FOR THE DEVELOPMENTAL TRAINING DEVICES ON-SITE. Key points: 1. Significant contract for essential security services supporting critical training infrastructure. 2. Sole-source award to Boeing raises questions about competition and potential cost savings. 3. Long-term contract (5 years) indicates ongoing need for these specialized services. 4. Focus on cyber and physical security highlights evolving threats in defense training.
Value Assessment
Rating: fair
The contract value of $23.2 million over five years appears reasonable for comprehensive cyber and physical security services. However, without specific benchmarks for similar training device maintenance contracts, a definitive assessment of value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning there was no open competition. This approach limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this substantial contract could lead to higher expenditures than necessary, impacting the efficient use of taxpayer funds.
Public Impact
Ensures the security of critical developmental training devices, vital for military readiness. Supports advanced cyber defense capabilities necessary in today's threat landscape. Provides ongoing maintenance, reducing the risk of operational disruptions. The sole-source nature may limit opportunities for smaller, innovative cybersecurity firms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing due to sole-source award
- Long-term commitment without competitive re-evaluation
Positive Signals
- Addresses critical cybersecurity needs
- Ensures operational continuity of training devices
- Supports a major defense contractor
Sector Analysis
This contract falls within the broader defense sector, specifically supporting training and readiness. Spending on cybersecurity and physical security for critical infrastructure is a growing area, with benchmarks varying widely based on the specific assets and services required.
Small Business Impact
The sole-source nature of this award means that small businesses were not afforded an opportunity to compete for this contract. This limits their potential to engage with the Department of Defense on this specific requirement.
Oversight & Accountability
The Department of Defense is responsible for overseeing this contract to ensure that Boeing delivers the required cyber and physical security services effectively and at a fair price, despite the sole-source award.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated costs.
- Long-term commitment may not reflect evolving market prices.
- Lack of transparency in vendor selection.
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.2 million to THE BOEING COMPANY. CYBER SECURITY SERVICES TO INCLUDE PHYSICAL SECURITY, CYBER SECURITY UPDATES, AND SCHEDULED AND UNSCHEDULED MAINTENANCE FOR THE DEVELOPMENTAL TRAINING DEVICES ON-SITE.
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 $23.2 million.
What is the period of performance?
Start: 2022-03-03. End: 2027-03-03.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further documentation, it's unclear why other qualified vendors were not considered or why a competitive process was deemed unsuitable for these essential cyber and physical security services.
How does the pricing of this contract compare to industry benchmarks for similar cybersecurity and maintenance services?
A direct comparison is challenging without specific data on the scope and complexity of services provided. However, sole-source contracts often carry a risk of higher pricing due to the absence of competitive pressure. Benchmarking against similar government or commercial contracts would be necessary for a thorough assessment.
What measures are in place to ensure the effectiveness and efficiency of the security services provided under this long-term contract?
Effectiveness is typically ensured through performance metrics, service level agreements (SLAs), and regular reporting requirements outlined in the contract. Oversight by the contracting officer and technical representatives is crucial to monitor performance and address any deficiencies throughout the contract's duration.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
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: FIRM FIXED PRICE (J)
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: $28,665,079
Exercised Options: $23,197,483
Current Obligation: $23,197,483
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $435,075
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001921G0006
IDV Type: BOA
Timeline
Start Date: 2022-03-03
Current End Date: 2027-03-03
Potential End Date: 2027-03-03 00:00:00
Last Modified: 2025-09-11
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