DoD Awards Boeing $49.4M for AMSTEL LITE System Suite Engineering Services
Contract Overview
Contract Amount: $49,362,169 ($49.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-09-27
End Date: 2029-08-31
Contract Duration: 1,799 days
Daily Burn Rate: $27.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Engineering Services
Official Description: AMSTEL LITE SYSTEM SUITE FFP TASK ORDER
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $49.4 million to THE BOEING COMPANY for work described as: AMSTEL LITE SYSTEM SUITE FFP TASK ORDER Key points: 1. Significant contract value for specialized engineering services. 2. Sole-source award to Boeing raises questions about competition. 3. Long performance period (5 years) warrants close monitoring. 4. Engineering services sector is critical for defense modernization.
Value Assessment
Rating: fair
The contract value of $49.4M for engineering services over nearly 5 years appears substantial. Benchmarking against similar large-scale, sole-source engineering contracts is difficult without more data, but the lack of competition suggests potential for higher pricing.
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 leads to less favorable terms for the government compared to a competitive process.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these engineering services.
Public Impact
Potential for increased costs due to sole-source nature. Impact on future defense system development and maintenance. Need for robust oversight to ensure value for taxpayer dollars.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of small business participation
Positive Signals
- Critical engineering services for defense
- Experienced contractor (Boeing)
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for the development and sustainment of complex defense systems. Spending in this area is often high due to the specialized nature of the work and the critical role it plays in national security.
Small Business Impact
The data indicates no small business participation in this contract. Given the large value and sole-source nature, there may be missed opportunities to engage small businesses for specific components or sub-tasks within this engineering effort.
Oversight & Accountability
Given the sole-source award and significant value, enhanced oversight is crucial. The Department of the Navy must ensure rigorous performance monitoring, cost controls, and justification for the sole-source decision to ensure accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for cost overruns due to lack of competitive pressure.
- No small business participation identified.
- Long contract duration increases exposure to risks.
- Requires significant government oversight to ensure value.
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 $49.4 million to THE BOEING COMPANY. AMSTEL LITE SYSTEM SUITE FFP 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 $49.4 million.
What is the period of performance?
Start: 2024-09-27. End: 2029-08-31.
What is the justification for the sole-source award, and how does it ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. However, without competition, ensuring fair and reasonable pricing requires robust government cost analysis, negotiation, and potentially independent cost estimates to validate the contractor's proposed costs and profit margins.
What are the long-term risks associated with a sole-source contract of this magnitude?
Long-term risks include vendor lock-in, reduced innovation due to lack of competitive pressure, and potentially escalating costs over the contract's life. The government may also lose leverage in future negotiations if the sole-source provider becomes indispensable. Continuous market research and planning for future competition are essential to mitigate these risks.
How will the effectiveness of these engineering services be measured to ensure mission accomplishment?
Effectiveness will be measured through clearly defined performance metrics, milestones, and deliverables outlined in the contract. Key Performance Indicators (KPIs) related to technical accuracy, adherence to schedule, budget management, and successful integration of the AMSTEL LITE System Suite will be tracked. Regular progress reviews and acceptance testing by the Navy will validate the quality and impact of the engineering services provided.
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: FIRM FIXED PRICE (J)
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: $49,362,169
Exercised Options: $49,362,169
Current Obligation: $49,362,169
Subaward Activity
Number of Subawards: 34
Total Subaward Amount: $3,821,456
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: 2024-09-27
Current End Date: 2029-08-31
Potential End Date: 2029-08-31 00:00:00
Last Modified: 2025-11-17
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)