Boeing Awarded $172M for Engineering Services, Facing Potential Cost Overruns
Contract Overview
Contract Amount: $58,955,208 ($59.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2004-05-07
End Date: 2008-07-31
Contract Duration: 1,546 days
Daily Burn Rate: $38.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200408!003402!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ04C0205 !A!N! !N! ! !20040507!20060415!172316432!172316432!009256819!N!THE BOEING COMPANY !ROUTE 291 & STEWART AVE !RIDLEY PARK !PA!19078!64832!045!42!RIDLEY PARK !DELAWARE !PENN !+000024925000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !1! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!001!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078
Plain-Language Summary
Department of Defense obligated $59.0 million to THE BOEING COMPANY for work described as: 200408!003402!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ04C0205 !A!N! !N! ! !20040507!20060415!172316432!172316432!009256819!N!THE BOEING COMPANY !ROUTE 291 & STEWART AVE !RIDLEY PARK !PA!19078!64832!045!42!RIDLEY PARK !DELA… Key points: 1. Contract awarded to The Boeing Company for engineering technical services. 2. Significant contract value of $172,316,432 over 4 years. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. Potential for cost overruns indicated by the 'br' (budgeted rate) value being lower than the awarded amount.
Value Assessment
Rating: questionable
The contract's total value is $172,316,432. While specific pricing details are limited, the budgeted rate of $38,134,000 suggests a potential discrepancy or risk of exceeding initial estimates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best value through a competitive process.
Public Impact
This contract supports critical aviation and missile command engineering services, impacting national defense capabilities. The duration of the contract (over 4 years) suggests a long-term need for these specialized engineering services. Award to a major defense contractor like Boeing highlights the reliance on established industry players for complex technical support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns based on budgeted rate vs. awarded amount.
- Long contract duration could lead to scope creep or evolving requirements.
- Reliance on a single large contractor for critical services.
Positive Signals
- Awarded through full and open competition.
- Supports essential defense engineering functions.
- Contract awarded to a well-established aerospace and defense company.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting aviation and missile systems. Spending in this sector is crucial for maintaining and advancing defense technology capabilities.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no explicit indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The contract was awarded by the Department of Defense. Standard oversight mechanisms for defense contracts would apply, including performance monitoring and financial reviews.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns.
- Long contract duration.
- Reliance on a single large contractor.
- Lack of explicit small business participation details.
Tags
engineering-services, department-of-defense, pa, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.0 million to THE BOEING COMPANY. 200408!003402!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ04C0205 !A!N! !N! ! !20040507!20060415!172316432!172316432!009256819!N!THE BOEING COMPANY !ROUTE 291 & STEWART AVE !RIDLEY PARK !PA!19078!64832!045!42!RIDLEY PARK !DELAWARE !PENN !+000024925000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !1! ! ! ! ! !999
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 $59.0 million.
What is the period of performance?
Start: 2004-05-07. End: 2008-07-31.
What is the specific nature of the engineering technical services required, and how do they contribute to the USA Aviation and Missile Command's mission?
The provided data indicates the contract is for 'ENGINEERING TECHNICAL SERVICES' under NAICS code 541330. These services likely encompass a broad range of technical support, design, analysis, testing, and integration related to aviation and missile systems. Their contribution is vital for the development, maintenance, and operational readiness of the command's advanced weaponry and aircraft.
How does the budgeted rate of $38.1M compare to the awarded value of $172.3M, and what are the implications for cost control?
The budgeted rate of $38,134,000 appears to be a component or an initial estimate, not the total contract value. The awarded contract value is $172,316,432. The 'br' field might represent a specific period's budget or a different metric. Without further clarification on what 'br' signifies, it's difficult to definitively assess cost control implications, but the significant difference warrants further investigation into the contract's financial structure.
What mechanisms are in place to ensure the effectiveness and value for money of these engineering services over the contract's 4-year duration?
As a Department of Defense contract awarded under full and open competition, it is subject to standard oversight. This typically includes performance metrics, regular progress reports, milestone reviews, and potentially independent government cost estimates. The contracting officer's representative (COR) would be responsible for monitoring performance and ensuring the services meet the defined requirements and deliver value.
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: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Address: ROUTE 291 & STEWART AVE, RIDLEY PARK, PA, 05
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-05-07
Current End Date: 2008-07-31
Potential End Date: 2008-07-31 00:00:00
Last Modified: 2012-09-11
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