Boeing awarded $9.9M for R&D, but contract details and competition remain unclear

Contract Overview

Contract Amount: $9,946,455 ($9.9M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2005-03-22

End Date: 2011-09-22

Contract Duration: 2,375 days

Daily Burn Rate: $4.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200506!004024!2100!W56HZV!TACOM - WARREN !W56HZV05C0248 !A!N! !Y! ! !20050322!20090930!016544780!016544780!009256819!N!THE BOEING COMPANY !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000000459301!N!N!000000000000!AZ11!RDTE/OTHER RESEARCH&DEVELOPMENT-BASIC RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541710!E! !3! ! ! ! ! !20200930!B! ! !B! !D!N!U!1!001!N!1A!Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $9.9 million to THE BOEING COMPANY for work described as: 200506!004024!2100!W56HZV!TACOM - WARREN !W56HZV05C0248 !A!N! !Y! ! !20050322!20090930!016544780!016544780!009256819!N!THE BOEING COMPANY !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. … Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Significant duration of 2375 days suggests a long-term project. 3. Awarded as a Cost Plus Fixed Fee type, which can carry cost overrun risks. 4. The contract was not competed, raising questions about potential cost efficiencies. 5. The contractor, The Boeing Company, is a major aerospace and defense firm. 6. The contract falls under the broad category of 'Research and Development-Basic Research'.

Value Assessment

Rating: questionable

The contract value of approximately $9.9 million for a nearly 6.5-year period is difficult to benchmark without more specific details on the research objectives and deliverables. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to higher costs if not managed tightly. Given the lack of competition, it's challenging to assess if this represents a fair price for the services rendered compared to market alternatives.

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 a specific contractor possesses unique capabilities or when circumstances preclude full and open competition. The lack of competition limits the government's ability to leverage market forces to achieve the lowest possible price and may indicate a reliance on a single provider for specialized research.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The primary beneficiary is likely the Department of the Army, which will receive the results of the research and development activities. The contract supports advancements in physical, engineering, and life sciences, potentially leading to new technologies or improved existing ones. The geographic impact is concentrated in Missouri, where the contractor is located. Workforce implications are likely within The Boeing Company's research and development divisions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and missed opportunities for cost savings.
The CPFF contract type can incentivize cost increases if not rigorously monitored.
Limited transparency into the specific R&D objectives makes it hard to assess true value for money.

Positive Signals

The Boeing Company is a well-established and experienced contractor in the aerospace and defense sector.
The contract supports critical research and development activities for the Department of the Army.
The contract duration indicates a commitment to a potentially significant research endeavor.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on basic research in physical, engineering, and life sciences. The R&D sector is characterized by innovation and the pursuit of new knowledge, often involving long-term projects with uncertain outcomes. Comparable spending benchmarks are difficult to establish without knowing the precise nature of the research, but government investment in R&D is crucial for technological advancement and national security.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. As a sole-source award to a large prime contractor, it is unlikely to have directly benefited small businesses through prime contract awards. Further analysis would be needed to determine if any subcontracting plans were in place.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Given it's a sole-source award, there may be heightened scrutiny from oversight bodies to ensure the necessity and value of the contract. Transparency is limited due to the lack of competitive bidding, making independent assessment of accountability challenging without access to detailed project reports.

Related Government Programs

Department of Defense Research and Development
Army Basic Research Programs
Aerospace and Defense R&D Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of detailed performance metrics
Limited transparency on R&D objectives

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.9 million to THE BOEING COMPANY. 200506!004024!2100!W56HZV!TACOM - WARREN !W56HZV05C0248 !A!N! !Y! ! !20050322!20090930!016544780!016544780!009256819!N!THE BOEING COMPANY !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000000459301!N!N!000000000000!AZ11!RDTE/OTHER RESEARCH&DEVELOPMENT-BASIC RESEARCH !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541710!E! !3! ! ! ! ! !20200

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 $9.9 million.

What is the period of performance?

Start: 2005-03-22. End: 2011-09-22.

What specific research objectives were outlined in this contract, and how do they align with the Department of the Army's strategic goals?

The provided data indicates the contract NAICS code is 541710, 'Research and Development in the Physical, Engineering, and Life Sciences,' and the description is 'RDTE/OTHER RESEARCH&DEVELOPMENT-BASIC RESEARCH.' This suggests the contract was for foundational research rather than applied development aimed at immediate deployment. Without access to the contract's SOW (Statement of Work) or PWS (Performance Work Statement), the precise objectives remain unknown. However, basic research typically aims to advance scientific knowledge and understanding, which indirectly supports long-term strategic goals by building a foundation for future technological breakthroughs relevant to national defense.

How does the $9.9 million award amount compare to similar basic research contracts awarded by the Department of the Army during the 2005-2011 period?

Benchmarking this $9.9 million award requires comparing it to other basic research contracts within the physical, engineering, and life sciences awarded by the Department of the Army between 2005 and 2011. Given the contract's duration of 2375 days (approximately 6.5 years), the annual spend averaged around $1.5 million. This figure is moderate for large-scale R&D efforts but could be substantial for highly specialized basic research. A comprehensive comparison would involve analyzing contract databases for similar NAICS codes and contract types, considering factors like research scope, contractor expertise, and specific scientific domains to determine if the pricing was competitive or indicative of a fair market value.

What are the primary risks associated with a sole-source Cost Plus Fixed Fee (CPFF) contract for basic research?

The primary risks associated with a sole-source CPFF contract for basic research are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher costs than if the contract were competed. The government cannot leverage market dynamics to ensure the best possible price. Secondly, the CPFF structure, while providing flexibility for R&D where costs can be uncertain, carries the risk of cost overruns. The contractor is reimbursed for allowable costs plus a fixed fee representing profit. If costs escalate beyond initial estimates, the government bears the burden, and the fixed fee may not adequately incentivize cost control if not structured with appropriate incentives or ceilings.

What is The Boeing Company's track record with similar R&D contracts, particularly with the Department of the Army?

The Boeing Company is a major aerospace and defense contractor with extensive experience in research and development across various domains, including those relevant to the Department of the Army. While specific details of their track record on similar basic research contracts are not provided in this data snippet, their history includes significant involvement in advanced technology development, systems engineering, and scientific research for military applications. Their established presence suggests a capacity to undertake complex R&D projects. However, a thorough assessment would require examining their performance history on specific contracts, including any past issues related to cost, schedule, or technical performance.

How does the $4.18 million in obligated funds (BR field) relate to the total award value and the contract's performance period?

The 'BR' field indicates $4,188,000, which likely represents the 'Budgetary Resources' or obligated funds at the time of data extraction, not necessarily the total potential award value. The total award value is stated as $9,256,819. The obligated amount is less than the total award, which is common for multi-year contracts where funds are incrementally obligated as the contract progresses. This suggests that at the point this data was captured, over $4.18 million had been committed and allocated for the contract's execution. The remaining funds would be obligated in subsequent fiscal years, contingent on continued performance and appropriations, up to the contract's ceiling of $9.26 million.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: J S MCDONNELL BLVD, SAINT LOUIS, MO, 63166

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline