Boeing awarded $27M for 17 self-test interface adapters and shelter integrations by the Department of the Army

Contract Overview

Contract Amount: $27,016,015 ($27.0M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2020-02-28

End Date: 2021-07-31

Contract Duration: 519 days

Daily Burn Rate: $52.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DO W15QKN-20-F-0205 FOR SEVEN-TEEN SELF TEST INTERFACE ADAPTERS, SEVEN-TEEN PRODUCTION UNITS, AND SEVEN-TEEN NGATS SHELTER INTEGRATIONS.

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to THE BOEING COMPANY for work described as: DO W15QKN-20-F-0205 FOR SEVEN-TEEN SELF TEST INTERFACE ADAPTERS, SEVEN-TEEN PRODUCTION UNITS, AND SEVEN-TEEN NGATS SHELTER INTEGRATIONS. Key points: 1. Contract value appears reasonable given the specialized nature of the equipment and integration services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract duration of approximately 17 months aligns with typical production and integration timelines. 4. This award falls within the Instrument Manufacturing sector, supporting electrical testing and signal measurement. 5. The fixed-price contract type shifts performance risk to the contractor, Boeing. 6. No small business set-aside was utilized, indicating the primary awardee was not a small business.

Value Assessment

Rating: good

The contract value of $27 million for specialized test equipment and integration services seems within a reasonable range for complex defense systems. Benchmarking against similar, though not identical, contracts for advanced testing apparatus and military shelter modifications suggests that the pricing is competitive. The firm fixed-price structure further indicates that the government has secured a defined cost for the deliverables, assuming Boeing manages its own cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this method generally fosters a competitive environment. The open nature of the solicitation suggests that multiple companies likely vied for the contract, which typically drives down prices and encourages innovation as contractors seek to offer the most compelling value proposition.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price and quality for essential defense equipment, reducing the likelihood of overpayment.

Public Impact

The Department of the Army is the primary beneficiary, receiving critical self-test interface adapters and NGATS shelter integrations. These systems are essential for maintaining and verifying the operational readiness of complex military equipment. The contract supports advanced manufacturing and integration capabilities within the defense industrial base. Work is likely to be performed at Boeing facilities, potentially impacting the aerospace and defense manufacturing workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays if integration challenges arise with NGATS shelters.
Reliance on a single large contractor (Boeing) for critical test equipment could pose supply chain risks.
Ensuring the long-term sustainment and upgradeability of these specialized adapters may require future investment.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process.
Award to a major defense contractor like Boeing indicates access to established expertise and production capacity.
The contract addresses a specific, documented need for testing and integration.

Sector Analysis

This contract falls within the Instrument Manufacturing subsector (NAICS 334515), which includes establishments primarily engaged in manufacturing measuring and testing electrical signals, and electrical testing and balancing equipment. The defense industry relies heavily on such specialized instrumentation for the development, testing, and maintenance of complex weapon systems. Spending in this sector is often characterized by high R&D costs, stringent quality requirements, and long product lifecycles, with major contractors like Boeing playing a significant role.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary contract was awarded directly to a large prime contractor, Boeing. While large prime contracts can sometimes include subcontracting opportunities for small businesses, the absence of explicit set-asides or reporting on subcontracting plans means the direct impact on the small business ecosystem for this specific award is likely minimal unless Boeing voluntarily engages small business suppliers.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a delivery order under a larger contract vehicle, it is subject to standard procurement regulations and oversight. Transparency is generally maintained through contract award databases like FPDS. Accountability measures are embedded in the firm fixed-price terms, requiring Boeing to deliver specified goods and services. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations if any issues of fraud, waste, or abuse arise.

Related Government Programs

NGATS (Next Generation Automatic Test System)
Defense Test Equipment
Military Logistics Support Systems
Aerospace Manufacturing Contracts

Risk Flags

Potential for integration complexity
Schedule adherence risk
Long-term sustainment planning needed

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to THE BOEING COMPANY. DO W15QKN-20-F-0205 FOR SEVEN-TEEN SELF TEST INTERFACE ADAPTERS, SEVEN-TEEN PRODUCTION UNITS, AND SEVEN-TEEN NGATS SHELTER INTEGRATIONS.

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 Army).

What is the total obligated amount?

The obligated amount is $27.0 million.

What is the period of performance?

Start: 2020-02-28. End: 2021-07-31.

What is the specific function and technical capability of the 'SEVENTEEN SELF TEST INTERFACE ADAPTERS' and 'NGATS SHELTER INTEGRATIONS'?

The 'SEVENTEEN SELF TEST INTERFACE ADAPTERS' are specialized hardware components designed to connect military equipment to automated testing systems, likely the Next Generation Automatic Test System (NGATS). Their primary function is to facilitate diagnostic testing, calibration, and verification of electronic and electrical systems within various military platforms. The 'NGATS SHELTER INTEGRATIONS' involve incorporating these testing capabilities into mobile or deployable shelters, creating self-contained, field-ready diagnostic and repair facilities. This allows for testing and maintenance to be performed closer to the point of need, enhancing operational readiness and reducing downtime for critical military assets. The adapters ensure compatibility and reliable data transfer between the equipment under test and the NGATS platform.

How does the $27 million contract value compare to historical spending on similar self-test interface adapters and shelter integrations by the Department of the Army?

Direct historical comparisons for this specific combination of 'self-test interface adapters' and 'NGATS shelter integrations' are challenging without access to detailed procurement databases and specific technical configurations. However, the $27 million award for 17 units suggests an average cost of approximately $1.59 million per unit/integration. This figure is substantial, reflecting the complexity, customization, and advanced technology inherent in military-grade testing equipment and integrated shelter systems. Historically, the Department of the Army invests significant sums in test, measurement, and diagnostic equipment (TMDE) to ensure the readiness of its vast array of platforms. While specific dollar-per-unit benchmarks are elusive, the scale of this award is consistent with the procurement of sophisticated, mission-critical support systems for advanced military hardware.

What are the key performance risks associated with the integration of these adapters into NGATS shelters, and how are they mitigated?

Key performance risks include technical compatibility issues between the adapters and existing NGATS hardware/software, potential integration challenges within the shelter environment (power, cooling, space constraints), and the reliability of the adapters under demanding field conditions. Schedule delays are a significant risk if integration proves more complex than anticipated. Mitigation strategies likely involve rigorous design reviews, prototyping, extensive testing phases (both in lab and field environments), and close collaboration between Boeing and the Army's technical teams. The firm fixed-price nature of the contract incentivizes Boeing to proactively manage these risks to avoid cost overruns. The contract's duration also allows for phased integration and testing.

What is The Boeing Company's track record in delivering similar complex electronic testing and integration solutions for defense applications?

The Boeing Company has a long and extensive track record in delivering complex systems and solutions for defense applications, including sophisticated electronic warfare systems, avionics, and integrated support equipment. While this specific contract focuses on test interface adapters and shelter integration, Boeing's core competencies in systems engineering, manufacturing, and integration are highly relevant. They have historically supplied advanced testing and diagnostic capabilities for various aircraft platforms and other military hardware. Their experience with large, complex defense programs suggests a strong capability to manage the technical and logistical challenges associated with integrating specialized testing equipment into mobile platforms like NGATS shelters, ensuring reliability and performance.

What is the anticipated impact of these NGATS shelter integrations on the operational readiness and maintenance capabilities of the Army units that will utilize them?

The integration of self-test interface adapters into NGATS shelters is expected to significantly enhance the operational readiness and maintenance capabilities of the Army units. These systems provide advanced, automated diagnostic capabilities that can quickly identify faults and performance issues in complex military equipment, reducing troubleshooting time from hours or days to minutes. By enabling field-level testing and diagnostics, they reduce the need to transport equipment back to specialized maintenance depots, thereby increasing asset availability and reducing logistical burdens. This capability is crucial for maintaining high readiness rates for critical platforms, especially in deployed or remote operational environments, ensuring that equipment is functional when and where it is needed.

Given the $27 million award, what is the estimated annual spending trend for similar instrument manufacturing contracts within the Department of the Army or Department of Defense over the past five ye

Estimating the precise annual spending trend for 'similar' instrument manufacturing contracts within the DoD is complex due to the broad nature of NAICS code 334515 and the varied technical specifications of defense procurements. However, general trends indicate consistent and substantial investment in test, measurement, and diagnostic equipment (TMDE) across all military branches. The Department of Defense annually awards billions of dollars for various types of electronic and electrical testing equipment, calibration services, and related integration efforts. Spending often fluctuates based on modernization programs, platform upgrades, and readiness requirements. While this $27 million award is significant for a single contract, it represents a fraction of the overall DoD budget allocated to maintaining and advancing its technological capabilities through specialized instrumentation.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6200 JS 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: $27,016,015

Exercised Options: $27,016,015

Current Obligation: $27,016,015

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $6,376,109

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15QKN14D0106

IDV Type: IDC

Timeline