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 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: $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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