DoD Awards Boeing $33.2M for IRST System Test Sets, Raising Oversight Questions
Contract Overview
Contract Amount: $33,201,934 ($33.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-09-26
End Date: 2025-09-25
Contract Duration: 1,095 days
Daily Burn Rate: $30.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IRST OTPS PHASE I - THIS PROCUREMENT IS FOR THE DESIGN, DEVELOPMENT, AND PRODUCTION OF OPERATIONAL TEST PROGRAM SETS (OTPS) AND SPECIAL TEST EQUIPMENT TO SUPPORT THE AN/ASG-34A (V)1 INFRARED SEARCH AND TRACK SYSTEM (IRST) UNITS UNDER TEST (UUT).
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $33.2 million to THE BOEING COMPANY for work described as: IRST OTPS PHASE I - THIS PROCUREMENT IS FOR THE DESIGN, DEVELOPMENT, AND PRODUCTION OF OPERATIONAL TEST PROGRAM SETS (OTPS) AND SPECIAL TEST EQUIPMENT TO SUPPORT THE AN/ASG-34A (V)1 INFRARED SEARCH AND TRACK SYSTEM (IRST) UNITS UNDER TEST (UUT). Key points: 1. Significant contract value for specialized defense system development. 2. Sole-source award to Boeing raises questions about competition and pricing. 3. Potential for cost overruns due to Cost Plus Fixed Fee contract type. 4. Focus on critical aircraft defense technology.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, while common for R&D, can lead to higher costs compared to fixed-price contracts. Benchmarking is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a sole-source award, meaning there was no open competition. This limits price discovery and potentially increases costs for taxpayers as the government did not explore alternative vendors or pricing.
Taxpayer Impact: The lack of competition for this sole-source contract may result in higher costs than if multiple bids were solicited, impacting taxpayer value.
Public Impact
Enhances critical infrared detection capabilities for naval aircraft. Supports the operational readiness of advanced military platforms. Potential for follow-on contracts as the system matures.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type can inflate costs.
- Lack of small business participation noted.
Positive Signals
- Supports critical defense technology.
- Long-term contract duration suggests ongoing need.
- Awarded to a reputable defense contractor.
Sector Analysis
This contract falls within the Defense sector, specifically supporting advanced aircraft systems. Spending in this area is driven by national security needs and technological advancements, with significant investment in specialized electronic systems.
Small Business Impact
The data indicates this contract did not involve small businesses. This is common for large, specialized defense procurements where prime contractors often manage complex supply chains.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution. The Cost Plus Fixed Fee structure requires diligent monitoring of costs and performance.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- No small business participation
- Potential for cost overruns
- Limited transparency on pricing justification
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 $33.2 million to THE BOEING COMPANY. IRST OTPS PHASE I - THIS PROCUREMENT IS FOR THE DESIGN, DEVELOPMENT, AND PRODUCTION OF OPERATIONAL TEST PROGRAM SETS (OTPS) AND SPECIAL TEST EQUIPMENT TO SUPPORT THE AN/ASG-34A (V)1 INFRARED SEARCH AND TRACK SYSTEM (IRST) UNITS UNDER TEST (UUT).
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 $33.2 million.
What is the period of performance?
Start: 2022-09-26. End: 2025-09-25.
What is the justification for the sole-source award, and were alternative acquisition 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 if other vendors could have met the requirements or if a competitive process was explored and deemed unsuitable.
How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns and ensure value for money?
Effective management of a Cost Plus Fixed Fee contract requires rigorous cost tracking, performance monitoring, and clear communication between the government and contractor. Establishing realistic cost ceilings and performance incentives is crucial to mitigate risks and ensure taxpayer funds are used efficiently.
What are the key performance indicators (KPIs) for this contract, and how will success be measured?
Key performance indicators would likely focus on the timely delivery of functional OTPS and special test equipment, adherence to technical specifications, and successful integration testing. Success will be measured by the government's acceptance of deliverables and the system's performance in supporting the AN/ASG-34A (V)1 IRST system.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: MAINT/REPAIR SHOP EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6833522R0011
Offers Received: 1
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: $33,201,934
Exercised Options: $33,201,934
Current Obligation: $33,201,934
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $16,935,143
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001921G0006
IDV Type: BOA
Timeline
Start Date: 2022-09-26
Current End Date: 2025-09-25
Potential End Date: 2025-09-25 00:00:00
Last Modified: 2024-05-06
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)