Army Awards Boeing $228M for Engineering Services Task Order, No Competition Identified
Contract Overview
Contract Amount: $227,879,951 ($227.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-01-04
End Date: 2025-07-02
Contract Duration: 1,275 days
Daily Burn Rate: $178.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: AWARD OF VERSION 6X CONFIGURATION TASK ORDER.
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85215
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $227.9 million to THE BOEING COMPANY for work described as: AWARD OF VERSION 6X CONFIGURATION TASK ORDER. Key points: 1. Significant award to a major defense contractor. 2. Sole-source nature raises questions about price discovery. 3. Long duration suggests a complex, ongoing need. 4. Engineering services sector is critical for defense modernization.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar engineering services contracts is difficult without more detailed scope information.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This award was not competed, indicating a sole-source or limited competition procurement. This lack of competition may have resulted in a higher price than could have been achieved through a competitive process.
Taxpayer Impact: The absence of competition could lead to taxpayers paying more than necessary for these engineering services.
Public Impact
Potential for inflated costs due to lack of competition. Impact on defense readiness if services are not cost-effective. Opportunity for future oversight to ensure value for money.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Award to established contractor
- Supports critical defense needs
Sector Analysis
This award falls within the Engineering Services sector, which is vital for the Department of Defense's research, development, and acquisition processes. Spending in this sector is often substantial and directly tied to national security objectives.
Small Business Impact
The awardee is The Boeing Company, a large business. There is no indication that small businesses were involved as subcontractors on this specific task order.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the fixed fee is reasonable and that costs are appropriately managed throughout the contract's duration. Regular performance reviews are essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency on specific services
- Long performance period increases risk exposure
Tags
engineering-services, department-of-defense, az, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $227.9 million to THE BOEING COMPANY. AWARD OF VERSION 6X CONFIGURATION TASK ORDER.
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 $227.9 million.
What is the period of performance?
Start: 2022-01-04. End: 2025-07-02.
What specific engineering services are being procured, and how do they align with current defense priorities?
The data indicates the award is for 'Engineering Services' related to 'Version 6X Configuration Task Order'. Without further details on the specific nature of these services and their configuration, it's difficult to definitively assess their alignment with current defense priorities. However, engineering services are generally crucial for system development, maintenance, and modernization within the Department of Defense.
What justification was provided for not competing this significant task order?
The provided data states the contract was 'NOT COMPETED'. A formal justification for this decision, such as a brand name justification or a finding of necessity, would typically be required for sole-source awards. Understanding this justification is key to assessing the legitimacy of the procurement approach and potential risks.
How will the Cost Plus Fixed Fee structure be monitored to ensure cost control and prevent contractor profit inflation?
Effective oversight of a Cost Plus Fixed Fee contract requires rigorous monitoring of incurred costs and the contractor's performance against the fixed fee. The Army should implement stringent auditing procedures, regular progress reviews, and clear performance metrics to ensure the contractor operates efficiently and that the final cost remains reasonable and justified.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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: $460,739,740
Exercised Options: $460,459,240
Current Obligation: $227,879,951
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $9,525,101
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ21D0077
IDV Type: IDC
Timeline
Start Date: 2022-01-04
Current End Date: 2025-07-02
Potential End Date: 2026-10-31 00:00:00
Last Modified: 2026-01-15
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