Boeing awarded $35.3M for NGATS Delivery Order, a sole-source contract for electrical signal testing instruments

Contract Overview

Contract Amount: $35,360,982 ($35.4M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2022-12-21

End Date: 2024-05-30

Contract Duration: 526 days

Daily Burn Rate: $67.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NGATS DELIVERY ORDER

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $35.4 million to THE BOEING COMPANY for work described as: NGATS DELIVERY ORDER Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns and limited market exploration. 2. The contract's duration of 526 days suggests a significant need for these specialized testing instruments. 3. Focus on instrument manufacturing for measuring and testing electricity and electrical signals indicates a critical role in defense readiness. 4. The firm fixed-price contract type provides some cost certainty, but the lack of competition limits benchmarking opportunities. 5. Awarded by the Department of the Army, this contract supports a specific, high-value defense capability. 6. The absence of small business set-aside flags suggests this contract is not designed to promote small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and the specialized equipment involved. Without competitive bids, it's difficult to ascertain if the $35.3 million price represents a fair market value. The contract's value is significant for the specific niche of electrical signal testing instruments, but the lack of comparative data prevents a definitive assessment of cost-effectiveness. Further analysis would require understanding the specific technical requirements and the availability of alternative solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, technology, or when urgency dictates a rapid award. The lack of competition means there were no other bidders to compare against, potentially leading to higher prices than if the contract had been open to a wider market. This limits the government's ability to leverage market forces for better pricing and innovation.

Taxpayer Impact: Taxpayers may be paying a premium for this contract due to the absence of competitive bidding. Without multiple offers, the government has less leverage to negotiate favorable terms and prices, potentially resulting in less efficient use of public funds.

Public Impact

The Department of the Army benefits from acquiring specialized instruments crucial for testing and measuring electrical signals, essential for maintaining and deploying advanced military equipment. The contract delivers critical instrument manufacturing services, ensuring the availability of reliable testing tools for defense applications. The geographic impact is primarily centered in Missouri, where the contract is being performed, potentially supporting local jobs and the regional economy. The workforce implications involve skilled labor in instrument manufacturing and testing, contributing to the specialized technical capabilities within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of competition may stifle innovation and reduce the incentive for the contractor to offer the most cost-effective solutions.
Specialized nature of the instruments could create a dependency on a single supplier, posing a long-term risk.
Limited transparency on the specific technical requirements and justification for sole-source award.

Positive Signals

Firm fixed-price contract provides cost certainty for the awarded amount.
Contract addresses a critical need for specialized testing instruments within the Department of the Army.
The contractor, The Boeing Company, is a well-established entity with significant experience in defense contracting.

Sector Analysis

This contract falls within the broader defense manufacturing and instrumentation sector. The market for specialized electrical testing and measurement instruments is often characterized by high technical barriers to entry and a limited number of qualified suppliers, particularly for defense-specific applications. Comparable spending benchmarks are difficult to establish without more detailed information on the specific instruments and their intended use, but the overall defense instrumentation market is substantial, driven by the need for advanced capabilities and maintenance of complex systems.

Small Business Impact

This contract does not appear to include any small business set-aside provisions, as indicated by 'sb': false. Consequently, there are no direct subcontracting implications for small businesses mandated by this specific award. The absence of set-asides means that opportunities for small businesses to participate in this contract are limited unless they are direct suppliers or partners to the prime contractor, The Boeing Company.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which caps the government's financial liability. Transparency is limited by the sole-source nature of the award, but contract details are generally available through federal procurement databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Instrumentation
Electrical Testing Equipment
Army Procurement
Sole-Source Contracts
Manufacturing Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for price escalation
Limited market visibility

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.4 million to THE BOEING COMPANY. NGATS DELIVERY ORDER

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 $35.4 million.

What is the period of performance?

Start: 2022-12-21. End: 2024-05-30.

What is the specific justification for awarding this contract on a sole-source basis to The Boeing Company?

The provided data does not explicitly state the justification for the sole-source award. Typically, sole-source contracts are justified under specific circumstances outlined in federal acquisition regulations, such as the existence of only one responsible source capable of providing the required supplies or services, or when a compelling urgency prevents competition. For this contract, the specialized nature of 'Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals' might imply unique technological requirements or proprietary knowledge held by The Boeing Company. A thorough review of the contract file and associated justifications would be necessary to confirm the precise reasons.

How does the $35.3 million award compare to historical spending on similar electrical testing instruments by the Department of the Army?

Direct comparison to historical spending on similar instruments is challenging without more granular data on the specific types of electrical testing instruments procured and their functionalities. The provided data indicates this is a 'Delivery Order' under a larger contract vehicle (implied by 'NGATS DELIVERY ORDER'). To assess historical spending patterns, one would need to analyze past contracts for comparable instruments, considering factors like quantity, technical specifications, and inflation. The sole-source nature of this award also complicates direct value comparisons, as competitive pricing benchmarks are absent. Further research into Army procurement databases for related categories would be required for a comprehensive historical analysis.

What are the key performance indicators (KPIs) or metrics used to evaluate the performance of The Boeing Company under this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics for this contract. However, for a firm fixed-price contract involving instrument manufacturing, typical performance metrics would likely include on-time delivery, adherence to technical specifications and quality standards, and potentially warranty performance. The Department of the Army would have established internal procedures for monitoring contractor performance, which might involve regular progress reports, inspections, and acceptance testing of the delivered instruments. The effectiveness of these oversight mechanisms would determine how well Boeing's performance is evaluated.

Are there any identified risks associated with The Boeing Company's track record in delivering complex defense instrumentation contracts?

The Boeing Company is a major defense contractor with a long history of delivering complex systems. While generally considered reliable, like any large corporation, Boeing has faced scrutiny and challenges on various contracts related to cost overruns, schedule delays, and technical issues in the past. For this specific contract, the data does not provide details on Boeing's past performance related to this particular type of instrument or within this specific contract vehicle. A comprehensive risk assessment would involve reviewing Boeing's recent performance history on similar defense instrumentation projects, including any past performance evaluations or reported issues.

What is the potential impact of this contract on the broader market for electrical signal testing instruments, particularly concerning innovation and competition?

The sole-source nature of this $35.3 million award to The Boeing Company for specialized electrical signal testing instruments could have a dampening effect on market innovation and competition. When a significant contract is awarded without competition, it reduces the incentive for other potential suppliers to invest in developing competing technologies or to challenge the incumbent's market position. This can lead to a less dynamic market, potentially slower technological advancement, and higher prices in the long run. The government's reliance on a single source may also limit its access to a wider range of innovative solutions that could emerge from a more competitive environment.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

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: $35,360,982

Exercised Options: $35,360,982

Current Obligation: $35,360,982

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $734,247

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15QKN23D0007

IDV Type: IDC

Timeline