Boeing Awarded $61.7M for C-130 Hercules Systems Engineering Services
Contract Overview
Contract Amount: $10,041,789 ($10.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2003-09-17
End Date: 2011-04-15
Contract Duration: 2,767 days
Daily Burn Rate: $3.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200311!000448!5700!GJ40 !WARNER ROBINS ALC/LUK !F3365798D0002 !A!N! !N!RJ19 !20030917!20060630!617869912!085188316!009256819!N!THE BOEING COMPANY !626 ANCHORS ST NW !FORT WALTON BE !FL!32548!24475!091!12!FORT WALTON BEACH !OKALOOSA !FLORIDA !+000001000000!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A1A!AIRFRAMES AND SPARES !3ACD!C-130 HERCULES !541330!E! !5!B!S! ! !D!20080930!B! ! !B! !A!N!R!2!002!B! !A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32548
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $10.0 million to THE BOEING COMPANY for work described as: 200311!000448!5700!GJ40 !WARNER ROBINS ALC/LUK !F3365798D0002 !A!N! !N!RJ19 !20030917!20060630!617869912!085188316!009256819!N!THE BOEING COMPANY !626 ANCHORS ST NW !FORT WALTON BE !FL!32548!24475!091!12!FORT WALTON BEACH !OKALO… Key points: 1. Contract awarded to The Boeing Company for C-130 Hercules systems engineering. 2. The contract value is $61,786,991.20. 3. This is a Delivery Order under a larger contract. 4. The contract was awarded using Full and Open Competition. 5. The period of performance spans from September 17, 2003, to April 15, 2011.
Value Assessment
Rating: good
The contract is a Cost Plus Award Fee type, which allows for flexibility in pricing based on performance. The total value of $61.7M over nearly 8 years suggests a moderate annual spend.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through Full and Open Competition, indicating a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive nature of the award is expected to yield a fair price for the systems engineering services provided.
Public Impact
Ensures continued support and development for the C-130 Hercules aircraft. Supports critical military aviation capabilities. Provides long-term employment for skilled engineers and technicians. Contributes to the aerospace and defense sector's economic activity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long performance period could lead to scope creep or cost overruns if not managed effectively.
- Cost Plus Award Fee contracts require robust oversight to ensure fair pricing and prevent contractor overcharging.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Long-term contract provides stability for critical aircraft support.
- Boeing is a well-established prime contractor with extensive experience on the C-130 platform.
Sector Analysis
This contract falls within the Defense sector, specifically supporting aircraft manufacturing and maintenance. Spending benchmarks for systems engineering services can vary widely based on aircraft complexity and age.
Small Business Impact
While the prime contractor is The Boeing Company, there is no specific information provided regarding subcontracting opportunities for small businesses on this particular delivery order.
Oversight & Accountability
The contract type (Cost Plus Award Fee) necessitates strong government oversight to monitor performance, control costs, and ensure fair pricing. The duration of the contract also requires sustained attention.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to long performance period.
- Need for vigilant oversight of Cost Plus Award Fee structure.
- Risk of scope creep impacting budget and schedule.
- Dependence on a single prime contractor for critical systems engineering.
Tags
aircraft-manufacturing, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.0 million to THE BOEING COMPANY. 200311!000448!5700!GJ40 !WARNER ROBINS ALC/LUK !F3365798D0002 !A!N! !N!RJ19 !20030917!20060630!617869912!085188316!009256819!N!THE BOEING COMPANY !626 ANCHORS ST NW !FORT WALTON BE !FL!32548!24475!091!12!FORT WALTON BEACH !OKALOOSA !FLORIDA !+000001000000!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A1A!AIRFRAMES AND SPARES !3ACD!C-130 HERCULES !541330!E! !5!B!S! ! !D!20080930!B
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $10.0 million.
What is the period of performance?
Start: 2003-09-17. End: 2011-04-15.
What was the basis for the award fee structure, and how was performance measured to determine the final award amount?
The basis for the award fee structure would typically involve pre-defined performance metrics and objective criteria related to the systems engineering tasks. The government would evaluate Boeing's performance against these criteria throughout the contract period. The final award amount would be a combination of the cost incurred plus the fee earned based on the performance evaluation, aiming to incentivize high-quality service delivery and cost control.
Given the long performance period, what mechanisms were in place to manage potential cost increases due to inflation or evolving technical requirements?
Cost Plus Award Fee contracts often include provisions for economic price adjustments to account for inflation. For evolving technical requirements, a robust change management process would be essential. This would involve formal modifications to the contract, potentially including adjustments to cost ceilings and award fee criteria, subject to negotiation and approval based on the necessity and impact of the changes.
How does the annual spending on this contract compare to industry benchmarks for similar systems engineering support for legacy aircraft platforms?
Without specific details on the scope of 'systems engineering services' and the exact annual spend, a direct benchmark comparison is challenging. However, for a platform as critical and long-serving as the C-130, annual spending in the millions for comprehensive engineering support is not unusual. The $61.7M total spread over nearly 8 years suggests an average annual spend of approximately $7.7M, which appears reasonable for specialized engineering services on a major military aircraft.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 626 ANCHORS ST NW, FORT WALTON BEACH, FL, 32548
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,552,571
Exercised Options: $10,552,571
Current Obligation: $10,041,789
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F3365798D0002
IDV Type: IDC
Timeline
Start Date: 2003-09-17
Current End Date: 2011-04-15
Potential End Date: 2011-04-15 00:00:00
Last Modified: 2017-01-26
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