DoD Awards Boeing $29.3M Task Order for On-Site Engineering Support in California
Contract Overview
Contract Amount: $29,353,438 ($29.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-06-14
End Date: 2026-04-30
Contract Duration: 1,051 days
Daily Burn Rate: $27.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TASK ORDER FOR ON-SITE SUPPORT
Place of Performance
Location: RIDGECREST, KERN County, CALIFORNIA, 93555
Plain-Language Summary
Department of Defense obligated $29.4 million to THE BOEING COMPANY for work described as: TASK ORDER FOR ON-SITE SUPPORT Key points: 1. Significant contract value for specialized engineering services. 2. Sole-source award to Boeing raises questions about competition. 3. Long-term duration (over 3 years) indicates ongoing need. 4. Focus on engineering services aligns with defense sector needs.
Value Assessment
Rating: fair
The contract value of $29.3M over approximately 3 years for on-site engineering support is substantial. Benchmarking against similar large-scale engineering support contracts within the DoD is necessary to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This limits price discovery and potentially reduces competitive pressure, which could impact overall cost-effectiveness.
Taxpayer Impact: The lack of competition for this significant task order may result in taxpayers paying a premium compared to a fully competed scenario.
Public Impact
Ensures continued on-site engineering expertise for critical Navy programs. Supports a major defense contractor, potentially impacting the aerospace and defense industrial base. Potential for knowledge transfer and sustainment of complex systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Cost-plus contract type
Positive Signals
- Award to established prime contractor
- Long-term support for critical systems
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a critical area for the Department of Defense. Spending in this sector is substantial, supporting complex weapon systems and technological advancements.
Small Business Impact
The awardee is The Boeing Company, a large prime contractor. There is no indication that small businesses were involved in this specific task order, either as subcontractors or direct awardees.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the justification for not competing is robust and that pricing is reasonable. Post-award oversight will be crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type may lead to cost overruns.
- Lack of transparency on specific services provided.
- Potential for contractor lock-in due to long duration.
Tags
engineering-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.4 million to THE BOEING COMPANY. TASK ORDER FOR ON-SITE SUPPORT
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 $29.4 million.
What is the period of performance?
Start: 2023-06-14. End: 2026-04-30.
What is the justification for the sole-source award, and has it been adequately documented?
The justification for a sole-source award typically involves specific circumstances, such as unique capabilities, urgent needs, or lack of other responsible sources. For this contract, the specific justification needs to be reviewed to ensure it meets federal procurement regulations and that alternatives were genuinely not feasible or cost-effective.
How does the cost-plus fixed fee structure impact overall cost control and taxpayer value?
Cost-plus fixed fee contracts can incentivize contractors to incur costs, as a portion of their profit is fixed regardless of the actual costs incurred. This structure requires robust oversight to manage costs effectively and ensure the government receives fair value. Benchmarking against similar contracts is essential.
What specific engineering services are being provided, and how critical are they to ongoing Navy operations?
The task order specifies 'On-Site Support' for engineering services. Understanding the precise nature of these services and their criticality to the Department of the Navy's operational readiness and program execution is vital for assessing the necessity and value of this sole-source award.
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: $41,863,222
Exercised Options: $41,863,222
Current Obligation: $29,353,438
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: 2023-06-14
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-12-10
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)