DoD's $30.5M Avenger Weapon System Contract with Boeing Raises Questions on Competition and Value
Contract Overview
Contract Amount: $30,553,422 ($30.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2012-05-04
End Date: 2019-05-31
Contract Duration: 2,583 days
Daily Burn Rate: $11.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AVENGER WEAPON SYSTEM IGF::OT::IGF
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35824
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $30.6 million to THE BOEING COMPANY for work described as: AVENGER WEAPON SYSTEM IGF::OT::IGF Key points: 1. The contract awarded to The Boeing Company for the Avenger Weapon System represents a significant expenditure. 2. Lack of competition is a key concern, potentially impacting price discovery and overall value. 3. The 'Engineering Services' sector is broad; understanding specific deliverables is crucial for assessing risk. 4. The contract's duration and cost-plus structure warrant scrutiny for potential cost overruns.
Value Assessment
Rating: questionable
The contract's total value is substantial. Without competitive bidding, it's difficult to benchmark pricing against similar services or systems, raising concerns about whether the government received the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This significantly reduces price pressure and limits the government's ability to explore alternative solutions or negotiate more favorable terms.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the Avenger Weapon System, as market forces were not leveraged to drive down costs.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long duration of the contract (2012-2019) suggests a need for ongoing support, but the initial award process lacked transparency. The specific engineering services provided under this contract are not detailed, making it hard for the public to assess the necessity and effectiveness of the spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Cost-Plus Contract Type
- Limited Transparency on Services
Positive Signals
- Awarded to a major defense contractor, potentially indicating access to specialized expertise.
Sector Analysis
This contract falls under Engineering Services, a broad category within the defense sector. Benchmarking is difficult without specific service details, but significant defense contracts often involve complex systems requiring specialized engineering expertise.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential issues with the justification for sole-source procurement. Further oversight is needed to ensure proper procedures were followed and that competition was not artificially limited.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding raises concerns about fair pricing.
- Cost-plus contract type may lead to higher costs without strong oversight.
- Limited transparency on specific services provided hinders value assessment.
- Long contract duration without clear competitive justification warrants scrutiny.
- Potential for contractor profit maximization at taxpayer expense.
Tags
engineering-services, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.6 million to THE BOEING COMPANY. AVENGER WEAPON SYSTEM IGF::OT::IGF
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 $30.6 million.
What is the period of performance?
Start: 2012-05-04. End: 2019-05-31.
What specific engineering services were provided under this contract, and how did they contribute to the Avenger Weapon System's development or sustainment?
The provided data lacks specifics on the engineering services rendered. These could range from design and integration to testing and lifecycle support for the Avenger Weapon System. Understanding the precise nature of these services is critical for evaluating their necessity, the technical challenges involved, and whether the cost-plus fixed fee structure was appropriate for the risks undertaken by the contractor.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions or competitive approaches considered?
The data indicates the contract was 'NOT COMPETED,' implying a sole-source award. A thorough review would require access to the official justification documents. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. Without this justification, it's impossible to assess if competition was genuinely impossible or if it was simply bypassed, potentially leading to suboptimal pricing for the government.
How does the cost-plus fixed fee structure impact the government's ability to control costs and ensure efficient delivery of services for this weapon system?
Cost-plus fixed fee contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee. While this structure can incentivize contractors to complete work efficiently to maximize their profit margin on the fee, it also places the burden of cost control on the government. Without robust oversight and clear performance metrics, there's a risk of cost overruns, as the contractor is guaranteed cost recovery, potentially diminishing the incentive for aggressive cost management.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT/REPAIR SHOP EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W31P4Q11R0007
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 499 BOEING BLVD SW, HUNTSVILLE, AL, 35824
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: $93,236,362
Exercised Options: $30,553,422
Current Obligation: $30,553,422
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-05-04
Current End Date: 2019-05-31
Potential End Date: 2019-05-31 00:00:00
Last Modified: 2025-04-22
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)