DoD Awards $86.4M for IRST System Support, Lacking Competition
Contract Overview
Contract Amount: $86,427,453 ($86.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-02-26
End Date: 2029-02-25
Contract Duration: 1,826 days
Daily Burn Rate: $47.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IRST OTPS PHASE II - 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 $86.4 million to THE BOEING COMPANY for work described as: IRST OTPS PHASE II - 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 raises concerns about price discovery and potential overspending. 3. Limited competition may restrict innovation and access for other qualified vendors. 4. Focus on critical infrared search and track technology for defense applications.
Value Assessment
Rating: questionable
The contract value of $86.4 million for design, development, and production of test sets is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar specialized defense system development contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This procurement was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to higher costs for taxpayers as there is no market pressure to drive down prices.
Taxpayer Impact: The lack of competition means taxpayers may be paying a premium for these specialized test sets, as the government did not leverage market forces to secure the best possible price.
Public Impact
Enhances critical defense capabilities for the AN/ASG-34A(V)1 IRST system. Supports advanced threat detection technology essential for national security. Potential for increased costs due to sole-source award impacts taxpayer funds. Long-term contract (5 years) indicates sustained need for this support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Cost-plus contract type
Positive Signals
- Supports critical defense technology
- Long-term contract duration
Sector Analysis
This contract falls within the defense sector, specifically supporting advanced sensor technology. Spending benchmarks for specialized system development and testing can vary widely, but the lack of competition here is a key concern.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both 'ss' (small business set-aside) and 'sb' (small business participation) are false. This represents a missed opportunity for small business engagement in this defense procurement.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Department of Defense and the Defense Contract Management Agency to ensure fair pricing and effective execution of the contract requirements.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type may incentivize higher costs.
- Lack of small business participation.
- Potential for price inflation due to no competitive pressure.
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 $86.4 million to THE BOEING COMPANY. IRST OTPS PHASE II - 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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $86.4 million.
What is the period of performance?
Start: 2024-02-26. End: 2029-02-25.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing without competition?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. Without competitive bidding, the government must rely on detailed cost analysis and negotiation to ensure fair and reasonable pricing. This often involves reviewing the contractor's cost proposals, historical pricing, and independent cost estimates.
What are the potential risks associated with a cost-plus fixed fee contract for specialized system development, especially in a sole-source scenario?
Cost-plus contracts can incentivize contractors to incur more costs, as their fee is a percentage of those costs. In a sole-source scenario, this risk is amplified because there's no competitive pressure to control expenses. The government must diligently monitor costs and performance to prevent cost overruns and ensure the fixed fee remains appropriate for the effort.
How will the effectiveness of the Operational Test Program Sets (OTPS) and Special Test Equipment be measured and validated given the lack of competitive benchmarking?
Effectiveness will be measured through rigorous government testing and validation processes outlined in the contract's Statement of Work. This includes performance metrics, functional testing, and operational assessments against defined requirements. The absence of competition means the government must rely heavily on its own technical expertise and oversight to confirm the delivered equipment meets all necessary standards.
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: $86,427,453
Exercised Options: $86,427,453
Current Obligation: $86,427,453
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $46,011,574
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: 2024-02-26
Current End Date: 2029-02-25
Potential End Date: 2029-02-25 00:00:00
Last Modified: 2024-11-18
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)