Navy Awards Boeing $16.7M for 31C System Configuration Set Task Order
Contract Overview
Contract Amount: $16,763,546 ($16.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-04-28
End Date: 2027-04-30
Contract Duration: 1,463 days
Daily Burn Rate: $11.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 31C SYSTEM CONFIGURATION SET TASK ORDER
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $16.8 million to THE BOEING COMPANY for work described as: 31C SYSTEM CONFIGURATION SET TASK ORDER Key points: 1. Significant contract value of $16.7 million awarded to a single large business. 2. Sole-source award raises questions about competition and potential price discovery. 3. Long performance period (2023-2027) suggests a substantial, ongoing need. 4. Engineering services sector, with a focus on defense, is a key area of spending.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed carefully. Benchmarking against similar engineering services contracts for defense systems is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method may limit price discovery and could potentially result in higher costs for the government compared to a competitive procurement.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.
Public Impact
Taxpayers may be overpaying due to the lack of competition. The long duration of the contract raises concerns about long-term cost efficiency. Dependence on a single contractor for critical system configuration could pose a risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
Positive Signals
- Awarded to a known defense contractor
- Task order for system configuration
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting the Department of the Navy. Spending in this area is often driven by complex defense system requirements and upgrades.
Small Business Impact
The contract was awarded to The Boeing Company, a large business. There is no indication that small businesses were involved in this specific task order, either as prime contractors or subcontractors.
Oversight & Accountability
The Department of the Navy is the awarding agency. Oversight would typically involve contract management and performance monitoring to ensure adherence to terms and cost controls, especially given the cost-plus nature.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Contractor dependency
- Limited small business participation
Tags
engineering-services, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.8 million to THE BOEING COMPANY. 31C SYSTEM CONFIGURATION SET TASK ORDER
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 $16.8 million.
What is the period of performance?
Start: 2023-04-28. End: 2027-04-30.
What specific technical capabilities or proprietary knowledge held by Boeing justified a sole-source award for this system configuration task order?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary data, urgent needs, or specific system integration requirements where Boeing possesses exclusive expertise or access essential for the 31C system configuration.
How will the Department of the Navy ensure cost control and value for money with a Cost Plus Fixed Fee contract awarded sole-source?
The Navy will likely implement rigorous oversight, including detailed audits of costs, performance metrics tracking, and regular reviews of the fixed fee. They may also establish clear milestones and deliverables, with payments tied to successful completion, to incentivize efficiency and prevent cost overruns.
What is the long-term strategic implication of awarding a multi-year, sole-source contract for system configuration to a single large prime contractor?
This could lead to vendor lock-in, potentially limiting future flexibility and innovation. It also reduces opportunities for smaller, innovative companies to compete and contribute. The long-term strategy should consider periodic re-evaluation of the market and potential for competition in subsequent phases.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6893620R0097
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: $23,187,830
Exercised Options: $23,187,830
Current Obligation: $16,763,546
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $7,952,676
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N6893623D0001
IDV Type: IDC
Timeline
Start Date: 2023-04-28
Current End Date: 2027-04-30
Potential End Date: 2027-04-30 00:00:00
Last Modified: 2025-09-17
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