DoD Awards Boeing $304M for FCS Spin Out E-IBCT LRIP Advance Procurement
Contract Overview
Contract Amount: $304,714,862 ($304.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2009-05-14
End Date: 2015-05-31
Contract Duration: 2,208 days
Daily Burn Rate: $138.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: IT
Official Description: ADVANCE PROCUREMENT OF LONG LEAD ITEMS FOR FCS SPIN OUT E-IBCT LRIP.
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $304.7 million to THE BOEING COMPANY for work described as: ADVANCE PROCUREMENT OF LONG LEAD ITEMS FOR FCS SPIN OUT E-IBCT LRIP. Key points: 1. Significant investment in advanced military technology. 2. Sole-source award to Boeing raises competition concerns. 3. Long contract duration (2208 days) may impact cost control. 4. Focus on radio and wireless communications equipment manufacturing.
Value Assessment
Rating: questionable
The contract value of $304.7M is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar advanced procurement contracts for complex systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition in this large procurement could result in taxpayers paying a premium for these long-lead items.
Public Impact
Impacts future Army modernization efforts for the E-IBCT. Potential for technological advancements in military communications. Raises questions about the justification for sole-source procurement. Long-term commitment to a specific vendor for critical components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- Advance procurement for future systems
Positive Signals
- Procurement of critical long-lead items
- Supports a major defense program (FCS)
Sector Analysis
This contract falls under the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector. The $304.7M award is a significant sum within this specialized manufacturing area, particularly for defense applications.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of small business participation in the provided data, suggesting limited direct impact on small businesses.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution. Accountability for the justification of non-competition is crucial.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Long contract duration increases risk of cost escalation and schedule slippage.
- Dependence on a single supplier for critical components.
- Potential for technological obsolescence over the contract period.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, mo, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $304.7 million to THE BOEING COMPANY. ADVANCE PROCUREMENT OF LONG LEAD ITEMS FOR FCS SPIN OUT E-IBCT LRIP.
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 $304.7 million.
What is the period of performance?
Start: 2009-05-14. End: 2015-05-31.
What is the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met through competition. Without further documentation, it's unclear if alternatives were explored. The FCS program's complexity and specific requirements might have led the Department of the Army to identify Boeing as the only viable source for these particular long-lead items.
How does the $304.7M cost compare to industry benchmarks for similar advance procurement of complex communication systems?
Benchmarking this cost is challenging without detailed specifications and market analysis for comparable systems. However, given the sole-source nature, there's a risk the price may exceed what could be achieved through competitive bidding. A thorough cost-reconciliation analysis against similar, albeit potentially less complex, procurements would be necessary.
What are the key performance indicators and milestones to ensure the effectiveness and timely delivery of these long-lead items?
Effectiveness will be measured by the successful integration of these components into the E-IBCT system and their contribution to mission readiness. Key milestones should include defined delivery schedules for critical components, quality assurance checks, and performance testing. The long duration necessitates robust tracking mechanisms to prevent delays and cost overruns.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $305,425,783
Exercised Options: $304,714,862
Current Obligation: $304,714,862
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-05-14
Current End Date: 2015-05-31
Potential End Date: 2015-05-31 12:05:00
Last Modified: 2019-09-05
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