Army awards Boeing $28.3M for NGATS production units and test adapters under full and open competition
Contract Overview
Contract Amount: $28,292,037 ($28.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-08-19
End Date: 2023-08-03
Contract Duration: 714 days
Daily Burn Rate: $39.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER 018 FOR NGATS PRODUCTION UNITS AND SELF TEST INTERFACE ADAPTERS.
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $28.3 million to THE BOEING COMPANY for work described as: DELIVERY ORDER 018 FOR NGATS PRODUCTION UNITS AND SELF TEST INTERFACE ADAPTERS. Key points: 1. The contract is for specialized electrical testing equipment, falling under the Instrument Manufacturing NAICS code. 2. Boeing, a major defense contractor, secured this delivery order. 3. The award was made under full and open competition, suggesting a competitive bidding process. 4. The contract duration is 714 days, ending in August 2023.
Value Assessment
Rating: good
The contract value of $28.3M for specialized testing equipment appears reasonable given the scope and duration. Benchmarking against similar complex electronic test systems would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently, with prices driven by market forces.
Public Impact
Ensures readiness of critical Army aviation systems through specialized testing equipment. Supports advanced manufacturing capabilities within the defense industrial base. Contributes to the operational effectiveness of the Department of the Army's aviation fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if production complexities are underestimated.
- Dependence on a single supplier for critical components.
- Long-term sustainment and upgrade costs not detailed.
Positive Signals
- Awarded under full and open competition, promoting competitive pricing.
- Utilizes a firm-fixed-price contract type, shifting cost risk to the contractor.
- Supports a key defense contractor, maintaining industrial base capacity.
Sector Analysis
This contract falls within the defense sector, specifically focusing on instrument manufacturing for electrical testing. Spending in this area is crucial for maintaining the operational readiness and technological superiority of military equipment.
Small Business Impact
The data indicates the award went to The Boeing Company, a large prime contractor. There is no explicit information on small business participation in this specific delivery order, which is common for large prime contracts.
Oversight & Accountability
The award was made by the Department of the Army, a component of the Department of Defense. Standard procurement oversight processes would apply, with potential for program reviews and audits to ensure compliance and value.
Related Government Programs
- Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for schedule delays due to complex manufacturing.
- Reliance on a single prime contractor for critical equipment.
- Limited visibility into subcontractor performance.
- Long-term sustainment costs may exceed initial estimates.
Tags
instrument-manufacturing-for-measuring-a, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.3 million to THE BOEING COMPANY. DELIVERY ORDER 018 FOR NGATS PRODUCTION UNITS AND SELF TEST INTERFACE ADAPTERS.
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 $28.3 million.
What is the period of performance?
Start: 2021-08-19. End: 2023-08-03.
What is the specific technical capability provided by the NGATS production units and self-test interface adapters, and how critical are they to Army aviation operations?
The NGATS (Next Generation Automatic Test System) likely provides advanced diagnostic and testing capabilities for complex avionics and electronic systems on Army aircraft. These systems are critical for ensuring the reliability, maintainability, and operational readiness of aviation platforms, enabling rapid fault identification and repair in the field, thereby minimizing downtime and maximizing mission effectiveness.
Given the firm-fixed-price contract type, what are the primary risks associated with cost overruns or performance deficiencies for The Boeing Company?
Under a firm-fixed-price contract, Boeing bears the primary risk of cost overruns. If production costs exceed estimates, their profit margin will decrease. Performance deficiencies could lead to contract penalties, rejection of deliverables, or even termination for default, impacting their reputation and future contract opportunities. However, the government is protected from cost increases beyond the agreed price.
How does the competitive landscape for specialized aviation test equipment influence the pricing and innovation for future contracts like this one?
A competitive landscape for specialized aviation test equipment encourages innovation as companies strive to offer superior technology and features to win contracts. It also drives down prices through bidding. If competition is limited, prices may be higher, and innovation could slow. The 'full and open' nature of this award suggests a healthy competitive environment, likely resulting in better value and more advanced solutions for the Army.
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: $28,292,037
Exercised Options: $28,292,037
Current Obligation: $28,292,037
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $156,659
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN14D0106
IDV Type: IDC
Timeline
Start Date: 2021-08-19
Current End Date: 2023-08-03
Potential End Date: 2023-08-03 12:08:00
Last Modified: 2023-07-12
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