DoD Awards Boeing $40M for Navy Agile Release Train Support
Contract Overview
Contract Amount: $40,000,000 ($40.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-12-18
End Date: 2026-12-17
Contract Duration: 364 days
Daily Burn Rate: $109.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: SYSTEM CONFIGURATION SET (SCS) INFRASTRUCTURE (INF) AGILE RELEASE TRAIN (ART) SUPPORT
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: SYSTEM CONFIGURATION SET (SCS) INFRASTRUCTURE (INF) AGILE RELEASE TRAIN (ART) SUPPORT Key points: 1. Significant contract awarded to a major defense contractor. 2. Sole-source award raises questions about competition and price discovery. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Focus on IT infrastructure support within the Department of the Navy.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs for the government compared to fixed-price contracts. Without competitive bidding, it's difficult to assess if the $40 million is a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for this $40 million contract means taxpayers may be paying a premium for these engineering services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of the Navy relies on a single contractor for critical IT infrastructure support. The long-term implications of sole-source awards on innovation and cost-effectiveness are a concern.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing
Positive Signals
- Supports critical Navy IT infrastructure
- Awarded to a well-established defense contractor
Sector Analysis
This contract falls under Engineering Services (NAICS 541330) and supports the Department of the Navy's IT infrastructure. Spending in this sector is substantial, and competitive bidding is typically expected to ensure value.
Small Business Impact
This contract was awarded to The Boeing Company, a large business. There is no indication that small businesses will be involved as subcontractors, missing an opportunity to support smaller enterprises.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value and that the contractor is performing efficiently. Transparency in cost reporting will be crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type may lead to higher costs.
- Lack of small business participation.
- Potential for cost overruns without strong oversight.
- Limited transparency on pricing justification.
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 $40.0 million to THE BOEING COMPANY. SYSTEM CONFIGURATION SET (SCS) INFRASTRUCTURE (INF) AGILE RELEASE TRAIN (ART) SUPPORT
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: 2025-12-18. End: 2026-12-17.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. Without further details, it's impossible to determine the specific rationale, but it necessitates scrutiny to ensure it aligns with federal procurement regulations and serves the best interest of the government.
What are the potential risks associated with a Cost Plus Fixed Fee contract for IT infrastructure support?
Cost Plus Fixed Fee contracts carry inherent risks for the government, primarily the potential for cost overruns. The contractor is reimbursed for allowable costs plus a fixed fee, which may not incentivize cost efficiency. For IT infrastructure, scope creep or unforeseen technical challenges can significantly increase costs beyond initial projections.
How will the effectiveness of the Agile Release Train (ART) support be measured and ensured?
Effectiveness will likely be measured through performance metrics outlined in the contract, such as system uptime, delivery speed of software updates, and adherence to project milestones. Regular reviews and audits by the Department of the Navy will be essential to ensure the contractor is meeting performance expectations and delivering value.
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: 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: $47,022,315
Exercised Options: $47,022,315
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
Start Date: 2025-12-18
Current End Date: 2026-12-17
Potential End Date: 2026-12-17 00:00:00
Last Modified: 2025-12-18
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