Boeing awarded $130M contract for targeting network racks by the Navy, with no competition
Contract Overview
Contract Amount: $12,959,152 ($13.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-09-29
End Date: 2029-08-31
Contract Duration: 1,432 days
Daily Burn Rate: $9.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TO DESIGN, FABRICATE, INTEGRATE, TEST, DELIVER AND INSTALL TARGETING NETWORK RACKS.
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $13.0 million to THE BOEING COMPANY for work described as: TO DESIGN, FABRICATE, INTEGRATE, TEST, DELIVER AND INSTALL TARGETING NETWORK RACKS. Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. Long performance period of 1432 days suggests a complex or ongoing requirement. 3. Sole-source award raises questions about potential cost efficiencies and market alternatives. 4. The contract falls under Engineering Services, a broad category with diverse applications. 5. Delivery order signifies a specific task within a larger potential framework. 6. No small business set-aside indicates the primary contractor is not a small business.
Value Assessment
Rating: questionable
Without competitive bids, it is difficult to benchmark the value for money on this $130 million contract. The firm-fixed-price structure provides cost certainty for the government, but the absence of competition means there's no market validation of the pricing. Comparisons to similar targeting network rack contracts are not readily available due to the specialized nature and sole-source award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, The Boeing Company, was solicited. This limits the government's ability to explore alternative solutions or leverage market competition to drive down costs. The rationale for a sole-source award, such as unique capabilities or urgent need, would need to be thoroughly justified.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the most economical price.
Public Impact
The Department of the Navy benefits from the acquisition of essential targeting network racks. This contract supports the delivery and installation of critical military hardware. The primary geographic impact is likely within Missouri, where the contractor is located. The contract may have implications for the defense industrial workforce involved in fabrication and integration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may result in suboptimal pricing.
- Sole-source awards can reduce transparency in pricing and value.
- Long contract duration could introduce risks related to obsolescence or changing requirements.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- The Boeing Company is a major defense contractor with established capabilities.
- Contract specifies delivery and installation, indicating a comprehensive scope.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to defense systems. The market for specialized targeting network hardware is dominated by a few large defense contractors. Benchmarking is challenging due to the niche nature and sole-source award, but spending on defense electronics and integrated systems represents a significant portion of the overall defense budget.
Small Business Impact
The contract does not indicate any small business set-aside provisions. As a sole-source award to a large prime contractor, there is no direct benefit to small businesses through this specific award mechanism. Subcontracting opportunities for small businesses would depend on Boeing's internal procurement practices and decisions.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of specified goods and services. Transparency may be limited due to the sole-source nature, but contract details should be publicly available through federal procurement databases.
Related Government Programs
- Defense Logistics Agency (DLA) procurement
- Naval Sea Systems Command (NAVSEA) contracts
- Department of Defense (DoD) information technology contracts
- Advanced weapons systems procurement
Risk Flags
- Sole-source award
- Long performance period
- Potential for technological obsolescence
Tags
defense, department-of-the-navy, engineering-services, sole-source, firm-fixed-price, missouri, delivery-order, large-contract, targeting-systems, network-racks
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.0 million to THE BOEING COMPANY. TO DESIGN, FABRICATE, INTEGRATE, TEST, DELIVER AND INSTALL TARGETING NETWORK RACKS.
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 $13.0 million.
What is the period of performance?
Start: 2025-09-29. End: 2029-08-31.
What is the specific technical capability or unique requirement that necessitated a sole-source award to The Boeing Company for these targeting network racks?
The provided data does not specify the exact technical requirements or the justification for the sole-source award. Typically, sole-source contracts are justified when a unique capability, proprietary technology, or urgent need exists that only one contractor can fulfill. For targeting network racks, this could involve highly specialized integration with existing defense platforms, specific performance characteristics, or security requirements that Boeing uniquely possesses or has developed. Further investigation into the contract's justification documentation (e.g., Justification and Approval document) would be necessary to understand the specific rationale.
How does the $130 million value compare to similar targeting network rack procurements by the Navy or other defense agencies?
Direct comparisons for this specific $130 million contract are challenging due to its sole-source nature and the specialized 'targeting network racks' description. Publicly available data often aggregates spending into broader categories. However, the scale of the award suggests a significant system or a substantial quantity of components. Without competitive bids, establishing a precise market value benchmark is difficult. Historical spending on similar complex electronic systems or integrated network components within the defense sector might offer a very broad comparison, but specific cost-per-unit or total-project cost benchmarks for comparable sole-source awards are not readily accessible.
What are the key performance indicators (KPIs) or acceptance criteria defined in the contract for the design, fabrication, integration, testing, delivery, and installation of the targeting network rac
The provided summary data does not detail the specific Key Performance Indicators (KPIs) or acceptance criteria. However, a contract of this magnitude and duration (1432 days) for design, fabrication, integration, testing, delivery, and installation would typically include rigorous performance standards. These would likely cover aspects such as system reliability, throughput, accuracy of targeting data, interoperability with existing platforms, environmental resilience (e.g., temperature, shock), cybersecurity compliance, and successful completion of government acceptance testing (GAT) and operational testing. The firm-fixed-price nature implies that meeting these defined criteria is essential for contractor payment.
What is The Boeing Company's track record with the Department of the Navy and specifically with the Department of the Navy for similar complex electronic or network systems?
The Boeing Company is a major defense contractor with extensive experience and a long-standing relationship with the Department of the Navy and the broader Department of Defense. They have a proven track record in designing, manufacturing, and integrating complex systems, including aircraft, satellites, and various defense electronics. While specific details on their past performance related to 'targeting network racks' are not provided here, their general capabilities in systems engineering, integration, and production for high-value defense programs are well-established. Past performance evaluations and contract histories within federal procurement databases would offer more granular insights into their specific success rates and any past issues.
Are there any identified risks associated with the long performance period (1432 days) for this contract, such as technological obsolescence or changing military requirements?
A performance period of 1432 days (nearly four years) for a technology-focused contract like this does introduce inherent risks. Technological obsolescence is a primary concern; advancements in targeting and networking technology could render the delivered system outdated before or shortly after its full implementation. Changing military requirements or strategic priorities could also necessitate modifications, potentially leading to scope creep or the need for costly redesigns. To mitigate these risks, the contract likely includes provisions for managing technical refresh cycles, change management processes, and potentially phased deliveries or reviews to ensure alignment with evolving needs. The government's oversight will be crucial in managing these long-term risks.
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
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: $12,959,152
Exercised Options: $12,959,152
Current Obligation: $12,959,152
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: 2025-09-29
Current End Date: 2029-08-31
Potential End Date: 2029-08-31 00:00:00
Last Modified: 2025-09-29
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)