DoD Awards Boeing $49.5M for CIDD26 System Configuration Set Task Order

Contract Overview

Contract Amount: $49,518,263 ($49.5M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2024-05-06

End Date: 2026-09-30

Contract Duration: 877 days

Daily Burn Rate: $56.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CIDD26 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 $49.5 million to THE BOEING COMPANY for work described as: CIDD26 SYSTEM CONFIGURATION SET TASK ORDER Key points: 1. Significant award to a major defense contractor, Boeing. 2. Task order under an existing contract, indicating potential for follow-on work. 3. Cost Plus Fixed Fee contract type may incentivize cost overruns. 4. Engineering services sector, crucial for complex defense systems.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can lead to higher costs than fixed-price contracts if not managed carefully. The award amount is substantial, and the pricing will need close monitoring against the fixed fee and estimated costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This task order was not competed, suggesting it may be a sole-source award or awarded under a specific exception. Lack of competition can limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: The absence of competition for this significant award raises concerns about whether taxpayers received the best possible value. Close oversight is needed to ensure costs are reasonable.

Public Impact

Impacts the Department of the Navy's operational capabilities through system configuration. Supports advanced engineering services critical for national defense. Potential for follow-on work or related contracts, influencing future spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type
  • Not competed award

Positive Signals

  • Award to established prime contractor
  • Supports critical defense systems

Sector Analysis

This award falls within the Engineering Services sector, specifically related to system configuration for defense applications. Benchmarks for similar complex engineering task orders would be needed for a precise comparison, but the amount suggests a significant undertaking.

Small Business Impact

There is no indication that small businesses were involved in this specific task order, either as prime contractors or subcontractors. Further analysis would be required to determine the extent of small business participation in the parent contract.

Oversight & Accountability

The Department of the Navy is responsible for oversight. Given the sole-source nature and CPFF contract type, robust oversight and auditing will be critical to ensure cost control and performance.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Lack of competition may lead to inflated costs.
  • Cost Plus Fixed Fee contract type increases risk of cost overruns.
  • Potential for scope creep in complex system configuration.
  • Limited visibility into 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 $49.5 million to THE BOEING COMPANY. CIDD26 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 $49.5 million.

What is the period of performance?

Start: 2024-05-06. End: 2026-09-30.

What is the justification for awarding this task order on a sole-source basis, and what steps are being taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically relates to unique capabilities, urgent needs, or specific program requirements where only one contractor can fulfill the demand. To ensure fair and reasonable pricing, the government should conduct a thorough cost analysis, review historical pricing, and potentially engage independent cost estimators. Regular audits and performance reviews are also crucial.

What are the potential risks associated with the Cost Plus Fixed Fee contract type for this system configuration task order?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor has less incentive to control costs, as the government pays actual costs plus a fixed fee. This can lead to cost overruns if not meticulously managed. For system configuration, scope creep or unforeseen technical challenges could significantly increase costs beyond initial estimates, impacting the overall value.

How will the effectiveness of the CIDD26 system configuration be measured, and what are the key performance indicators (KPIs) for this task order?

Effectiveness will likely be measured against defined technical specifications, performance requirements, and delivery timelines outlined in the task order. Key performance indicators could include successful system integration, achievement of specified operational capabilities, adherence to budget, and timely completion. User acceptance testing and post-implementation performance monitoring will also be critical indicators.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: MODIFICATION OF EQUIPMENTMODIFICATION 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: $106,359,810

Exercised Options: $106,359,810

Current Obligation: $49,518,263

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $402,470

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: 2024-05-06

Current End Date: 2026-09-30

Potential End Date: 2026-09-30 00:00:00

Last Modified: 2025-12-17

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