DoD Awards $32.8M Engineering Services Contract to Boeing, Sole-Source
Contract Overview
Contract Amount: $32,807,420 ($32.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2016-11-09
End Date: 2023-12-31
Contract Duration: 2,608 days
Daily Burn Rate: $12.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF MUMTX COMPATIBILITY
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32819
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $32.8 million to THE BOEING COMPANY for work described as: IGF::OT::IGF MUMTX COMPATIBILITY Key points: 1. Significant award to a major defense contractor. 2. Sole-source nature raises questions about competition and pricing. 3. Long contract duration (2016-2023) suggests ongoing need. 4. Engineering services are critical for defense readiness.
Value Assessment
Rating: questionable
The contract value of $32.8M over several years for engineering services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value compared to market rates for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for engineering services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Reliance on a single contractor for critical engineering services could pose a risk. The long duration of the contract warrants scrutiny of ongoing necessity and performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Award to established contractor
- Supports critical defense needs
Sector Analysis
Engineering services are vital for the Department of Defense, encompassing design, development, and testing of complex systems. Spending in this sector is often characterized by long-term contracts and specialized expertise, making competition challenging but crucial for cost control.
Small Business Impact
This contract was awarded to The Boeing Company, a large prime contractor. There is no indication of small business participation in this specific award, suggesting opportunities for subcontracting may have been missed.
Oversight & Accountability
The sole-source nature of this contract warrants oversight to ensure the pricing is justified and the services provided are essential and effectively delivered. Regular performance reviews and justification for continued sole-source awards are important.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency
- Risk of vendor lock-in
- Questionable value for taxpayer money
Tags
engineering-services, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.8 million to THE BOEING COMPANY. IGF::OT::IGF MUMTX COMPATIBILITY
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 $32.8 million.
What is the period of performance?
Start: 2016-11-09. End: 2023-12-31.
What is the justification for awarding this significant engineering services contract on a sole-source basis?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For engineering services, this might be due to unique capabilities, proprietary knowledge, or urgent requirements where competition is not feasible or practical. A thorough review of the justification documentation is necessary to validate the necessity of this approach.
How can the Department of Defense ensure fair pricing for this sole-source contract?
Ensuring fair pricing for sole-source contracts involves rigorous cost analysis, benchmarking against similar services if available, and negotiating profit margins. The agency should also explore opportunities for future competition or phased approaches that could introduce market forces. Independent cost estimates and audits can also help verify the reasonableness of the proposed costs.
What is the potential impact of this long-term, sole-source contract on future defense engineering capabilities?
A long-term sole-source contract can potentially stifle innovation and limit the development of alternative solutions or capabilities from other firms. It may also create vendor lock-in, making it difficult to switch providers or adopt new technologies. This could impact the overall agility and cost-effectiveness of the defense supply chain for engineering services in the long run.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5000 E MCDOWELL RD, MESA, AZ, 85215
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: $32,807,420
Exercised Options: $32,807,420
Current Obligation: $32,807,420
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $130,438
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-11-09
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 12:12:00
Last Modified: 2022-12-07
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)