DoD awards $19.8M FRIES contract to Boeing for Engineering Services, raising competition concerns
Contract Overview
Contract Amount: $19,819,937 ($19.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-03-19
End Date: 2026-04-30
Contract Duration: 2,233 days
Daily Burn Rate: $8.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: FRIES
Place of Performance
Location: RIDLEY PARK, DELAWARE County, PENNSYLVANIA, 19078
Plain-Language Summary
Department of Defense obligated $19.8 million to THE BOEING COMPANY for work described as: FRIES Key points: 1. Significant award value of $19.8 million for engineering services. 2. Sole-source award to The Boeing Company limits competitive pricing. 3. Potential risk associated with a sole-source contract for critical engineering services. 4. The contract falls under the Engineering Services sector.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns, but the lack of competition suggests potential for higher pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning The Boeing Company was the only vendor considered. This significantly limits price discovery and competitive pressure, potentially leading to a higher overall cost for the government.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for engineering services that could have been procured at a lower cost through a competitive process.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on Boeing for critical engineering services, highlighting potential vendor lock-in. The long contract duration (ending 2026) means sustained potential for inflated costs if oversight is weak.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Award to established prime contractor
- Long-term service delivery
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330). Spending in this sector is crucial for government projects, but competitive bidding is typically expected to ensure value for money. The $19.8 million award is substantial for this type of service.
Small Business Impact
The contract was awarded to The Boeing Company, a large aerospace corporation. There is no indication that small businesses were involved in this specific award, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of the Army to ensure costs are reasonable and performance meets requirements. Without competitive pressure, accountability relies heavily on diligent contract management and auditing.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Potential for inflated pricing due to lack of competitive bidding.
- Long contract duration increases exposure to potential cost inefficiencies.
- Lack of small business participation.
Tags
engineering-services, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.8 million to THE BOEING COMPANY. FRIES
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 $19.8 million.
What is the period of performance?
Start: 2020-03-19. End: 2026-04-30.
What specific engineering services are being procured under this FRIES contract, and how do they justify a sole-source award?
The contract specifies 'Engineering Services' under NAICS code 541330. A sole-source justification typically requires demonstrating that only one responsible source can provide the required services due to unique capabilities, proprietary data, or urgent needs. Without further details on the specific nature of these engineering services, it's difficult to assess the validity of the sole-source determination and its impact on value.
What is the estimated cost savings or premium associated with this sole-source award compared to a competitive procurement?
Quantifying the exact cost premium is challenging without a competitive benchmark. However, historical data and industry analysis consistently show that sole-source contracts often result in higher prices than competitively awarded ones. The government may be paying a premium of 10-30% or more, depending on the market and the specific services, due to the lack of bidding.
How will the Department of Defense ensure effective performance and cost control under this Cost Plus Fixed Fee contract awarded to Boeing?
Effective oversight will be critical. This includes rigorous monitoring of Boeing's performance against contract milestones, detailed review of incurred costs to ensure they align with the fixed fee, and proactive management of any scope changes. Regular performance reviews and audits will be essential to mitigate risks associated with the CPFF structure and sole-source award.
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
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: ROUTE 291 & STEWART AVE, RIDLEY PARK, PA, 19078
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: $33,448,626
Exercised Options: $19,819,937
Current Obligation: $19,819,937
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $2,209,619
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ19D0028
IDV Type: IDC
Timeline
Start Date: 2020-03-19
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 12:04:00
Last Modified: 2025-12-08
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