Boeing awarded $40M engineering services task order by Department of the Navy for SCS Infrastructure Art

Contract Overview

Contract Amount: $40,000,000 ($40.0M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2024-12-01

End Date: 2025-12-17

Contract Duration: 381 days

Daily Burn Rate: $105.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SCS INFRASTRUCTURE ART TASK ORDER

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $40.0 million to THE BOEING COMPANY for work described as: SCS INFRASTRUCTURE ART TASK ORDER Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns. 2. Sole-source award limits opportunities for competitive pricing and innovation. 3. Short performance period of 381 days suggests a focused, potentially urgent need. 4. Engineering services (NAICS 541330) are critical for infrastructure projects. 5. Task order issued under a larger contract vehicle, details of which are not provided. 6. Geographic location in Missouri may indicate specific project site requirements.

Value Assessment

Rating: questionable

The $40 million award for engineering services presents a significant investment. Without comparable sole-source contracts or detailed cost breakdowns, it is difficult to benchmark the value for money. The cost-plus-fixed-fee structure inherently carries more risk for the government compared to fixed-price contracts, as costs can escalate. The absence of competition further complicates a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of the Navy did not solicit bids from multiple contractors. This approach is typically used when only one contractor possesses the necessary capabilities or when urgency dictates. The lack of competition means that pricing was not tested against market alternatives, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price through competitive bidding, potentially resulting in less favorable terms for taxpayers.

Public Impact

The Department of the Navy benefits from specialized engineering services for its SCS Infrastructure Art project. The services delivered are likely to support the design, planning, or execution of infrastructure related to art installations. The geographic impact is concentrated in Missouri, where the project is located. The contract may have implications for the specialized engineering workforce, particularly those with expertise in infrastructure and potentially artistic integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award raises concerns about price competitiveness and potential for inflated costs.
Cost-plus-fixed-fee contract type introduces risk of cost overruns for the government.
Limited transparency into the justification for sole-source procurement.
Short duration may indicate a reactive award rather than strategic long-term planning.
Lack of small business subcontracting noted, though not explicitly required for this type of award.

Positive Signals

Award to a major defense contractor (Boeing) suggests access to significant technical expertise.
Engineering services are essential for complex infrastructure projects, indicating a critical need being met.
Task order issued under an existing contract vehicle, implying some level of pre-qualification and oversight.
Clear performance period and end date provide defined project scope.

Sector Analysis

The engineering services sector is a critical component of the defense industrial base, supporting a wide range of projects from R&D to infrastructure development. NAICS code 541330 encompasses establishments primarily engaged in providing architectural and engineering services. The market is characterized by large, established firms capable of handling complex, high-value contracts, as well as smaller specialized firms. This contract fits within the broader category of defense infrastructure support, where spending can fluctuate based on modernization needs and geopolitical factors. Benchmarking requires comparison to similar sole-source engineering contracts within the DoD.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting requirements. This suggests that the primary contractor, Boeing, is expected to perform the majority of the work. While this may not directly impact the small business ecosystem through subcontracting opportunities on this specific task order, it highlights the dominance of large prime contractors in securing major defense contracts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a task order under a larger contract, some oversight mechanisms are likely pre-established. However, the sole-source nature and cost-plus-fixed-fee structure necessitate diligent monitoring of costs and performance to ensure value for money. Transparency is limited by the sole-source justification and the proprietary nature of cost details in CPFF contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Engineering Services
Naval Facilities Engineering Command Contracts
Infrastructure Modernization Programs
Sole-Source Defense Procurements
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of competition
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.0 million to THE BOEING COMPANY. SCS INFRASTRUCTURE ART 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 $40.0 million.

What is the period of performance?

Start: 2024-12-01. End: 2025-12-17.

What is the specific nature of the 'SCS Infrastructure Art' project and why was it deemed suitable for a sole-source award to The Boeing Company?

The specific details of the 'SCS Infrastructure Art' project are not publicly available in the provided data. However, sole-source awards are typically justified when a unique capability is required, only one source can fulfill the requirement, or in cases of urgent and compelling need. For The Boeing Company to be awarded on a sole-source basis, it suggests they possess proprietary technology, specialized expertise, or are the only entity capable of meeting the project's unique demands within the required timeframe. Further justification documents from the Department of the Navy would be necessary to fully understand the rationale.

How does the cost-plus-fixed-fee (CPFF) contract type compare to other pricing arrangements in terms of risk and potential value for the government in this context?

The Cost-Plus-Fixed-Fee (CPFF) contract type is characterized by the government reimbursing the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure shifts cost risk towards the government, as the final price is not fixed upfront and can increase if costs escalate. Compared to fixed-price contracts, CPFF offers less cost certainty for the government but can be advantageous when the scope of work is uncertain or R&D intensive, allowing flexibility. For a project like 'SCS Infrastructure Art,' if the scope is ill-defined or involves novel elements, CPFF might be chosen to encourage contractor engagement without stifling innovation, but it requires rigorous oversight to control costs and ensure value.

What are the potential implications of awarding this $40 million task order on a sole-source basis for future competition in this specific engineering service niche?

Sole-source awards, by definition, bypass the competitive process. This means that other qualified engineering firms did not have an opportunity to bid on this $40 million task order. Over time, a pattern of sole-source awards to a single contractor can discourage other companies from investing in developing capabilities in that niche, assuming they will not get a fair shot at future contracts. This can lead to reduced market competition, potentially higher prices in the long run, and less innovation as the incumbent faces less pressure to improve efficiency or offer competitive pricing. It also limits the government's ability to discover and leverage emerging capabilities from a broader range of suppliers.

Given the $40 million value and the engineering services category, what is a reasonable benchmark for the duration and scope of such a task order?

A $40 million task order for engineering services can represent a wide range of scopes and durations depending on the complexity and nature of the project. For instance, it could cover preliminary design and environmental studies for a large infrastructure project, or detailed design and oversight for a medium-sized facility. The provided duration of 381 days (approximately 1.05 years) suggests a focused effort, likely encompassing detailed design, planning, and potentially initial implementation oversight, rather than a multi-year, large-scale construction management role. Benchmarking would require comparing this to similar task orders issued by the Department of the Navy or other DoD components for comparable engineering services, considering factors like project type (e.g., new construction, renovation, specialized systems) and required deliverables.

What does the 'st': 'MO' (Missouri) designation signify in the context of this contract award?

The 'st': 'MO' designation indicates that the state of Missouri is relevant to this contract. This could mean several things: the contracting activity (the office awarding the contract) is located in Missouri; the performance location for the engineering services is in Missouri; or the project itself, the 'SCS Infrastructure Art,' is physically located in Missouri. Given that engineering services often involve site assessments, design work tied to a specific location, or project management for a physical asset, it is highly probable that the performance or the project site is within Missouri. This geographic specificity is important for understanding workforce implications, local economic impact, and logistical considerations.

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: $47,494,567

Exercised Options: $47,494,567

Current Obligation: $40,000,000

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