Boeing Awarded $61.7M for C-130 Hercules Systems Engineering Services
Contract Overview
Contract Amount: $10,032,333 ($10.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2003-06-27
End Date: 2010-10-01
Contract Duration: 2,653 days
Daily Burn Rate: $3.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200309!000305!5700!GJ40 !WARNER ROBINS ALC/LUK !F3365798D0002 !A!N! !N!RJ21 !20030627!20040630!617869912!085188316!009256819!N!THE BOEING COMPANY !626 ANCHORS ST NW !FORT WALTON BE !FL!32548!24475!091!12!FORT WALTON BEACH !OKALOOSA !FLORIDA !+000002000000!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION !3ACD!C-130 HERCULES !334511!E! !5!B!S! ! !D!20080928!B! ! !B! !A!N!Y!2!002!B! !A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! ! ! !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: 200309!000305!5700!GJ40 !WARNER ROBINS ALC/LUK !F3365798D0002 !A!N! !N!RJ21 !20030627!20040630!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 essential C-130 Hercules systems engineering. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration is substantial, spanning over 7 years, indicating long-term support needs. 4. The sector is Defense, specifically Aircraft Manufacturing, a critical area for national security.
Value Assessment
Rating: good
The contract value of $61.7M over approximately 7 years appears reasonable for complex systems engineering services on a major aircraft platform like the C-130. Benchmarking against similar long-term engineering support contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. It suggests that multiple capable vendors had the opportunity to bid, likely driving down costs through competitive pressure.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring the government receives the most competitive pricing available.
Public Impact
Ensures continued operational readiness and modernization of the C-130 Hercules fleet, vital for military logistics and operations. Supports high-tech jobs within the aerospace and defense sector, particularly in Florida. The long-term nature of the contract provides stability for both the contractor and the government's planning.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Long contract duration could lead to scope creep or cost overruns if not managed effectively.
- Reliance on a single prime contractor for critical systems engineering may pose risks if performance issues arise.
Positive Signals
- Award to a major defense contractor with a proven track record.
- Utilized full and open competition, indicating a robust procurement process.
- Contract supports a critical military asset, the C-130 Hercules.
Sector Analysis
This contract falls within the Defense sector, specifically supporting aircraft manufacturing and associated engineering services. Spending in this area is driven by national security requirements and the need to maintain aging but essential military platforms.
Small Business Impact
While the prime contractor is The Boeing Company, a large aerospace firm, the contract may involve subcontracting opportunities for small businesses in areas like specialized components, testing, or support services. Further analysis of subcontracting plans would be needed.
Oversight & Accountability
The Department of Defense, through agencies like the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial to ensure performance, manage costs, and verify compliance throughout the contract's lifecycle.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long-term contract duration increases risk of cost escalation.
- Potential for vendor lock-in if specialized knowledge becomes concentrated.
- Dependence on a single prime contractor for critical systems.
- Scope creep is a common risk in long-duration engineering contracts.
Tags
aircraft-manufacturing, department-of-defense, fl, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.0 million to THE BOEING COMPANY. 200309!000305!5700!GJ40 !WARNER ROBINS ALC/LUK !F3365798D0002 !A!N! !N!RJ21 !20030627!20040630!617869912!085188316!009256819!N!THE BOEING COMPANY !626 ANCHORS ST NW !FORT WALTON BE !FL!32548!24475!091!12!FORT WALTON BEACH !OKALOOSA !FLORIDA !+000002000000!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION !3ACD!C-130 HERCULES !334511!E! !5!B!S! ! !D!20080928!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: 2003-06-27. End: 2010-10-01.
What specific systems engineering tasks are included in this contract, and how do they align with the C-130's modernization roadmap?
The contract likely encompasses a range of activities such as design, integration, testing, and sustainment engineering for C-130 systems. These tasks are crucial for addressing obsolescence, incorporating new technologies, and ensuring the aircraft meets evolving operational requirements and mission profiles throughout its extended service life.
What are the key performance metrics and deliverables expected from The Boeing Company under this contract?
Key performance metrics would likely include on-time delivery of engineering reports, successful system integration, adherence to technical specifications, and effective problem resolution. Deliverables might involve updated design documents, test results, maintenance recommendations, and technical support, all aimed at maintaining and enhancing the C-130's capabilities.
How will the government ensure continued cost-effectiveness and prevent potential cost overruns over the contract's multi-year duration?
Cost-effectiveness will be managed through contract clauses, regular performance reviews, and potentially incentive fees tied to performance and cost savings. The government will likely employ Earned Value Management (EVM) techniques and conduct thorough audits to monitor spending and identify any deviations from the baseline plan early on.
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: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 626 ANCHORS ST NW, FORT WALTON BEACH, FL, 01
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: F3365798D0002
IDV Type: IDC
Timeline
Start Date: 2003-06-27
Current End Date: 2010-10-01
Potential End Date: 2010-10-01 00:00:00
Last Modified: 2014-07-16
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