Boeing awarded $5.2M Army engineering services task order under sole-source IDIQ
Contract Overview
Contract Amount: $5,235,697 ($5.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2026-01-01
End Date: 2026-12-31
Contract Duration: 364 days
Daily Burn Rate: $14.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TASK ORDER AWARD UNDER FMS PPSS IDIQ2
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85215
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $5.2 million to THE BOEING COMPANY for work described as: TASK ORDER AWARD UNDER FMS PPSS IDIQ2 Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Task order duration of one year suggests a focused scope of work. 3. Firm Fixed Price contract type provides cost certainty for the government. 4. Engineering services are critical for complex defense systems. 5. Awarded under an existing IDIQ, indicating a pre-established relationship. 6. Small business participation is not explicitly detailed in this award.
Value Assessment
Rating: fair
The award amount of $5.2 million for one year of engineering services is difficult to benchmark without more detail on the specific services provided. As a sole-source award under an IDIQ, there's a reduced opportunity for competitive pricing. However, the firm fixed price contract type offers cost predictability. Further analysis would require comparing the scope of work and unit rates to similar engineering services contracts awarded by the Department of the Army or other defense agencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded under a sole-source justification, meaning it was not competed openly. This typically occurs when a specific contractor possesses unique capabilities or when it's deemed most efficient to use an existing contract vehicle. The lack of open competition limits the government's ability to solicit the lowest possible price through a bidding process.
Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers compared to competitively bid contracts, as the price is negotiated directly with one provider.
Public Impact
The Department of the Army benefits from specialized engineering expertise. Services are likely to support ongoing defense programs and infrastructure. The contract is geographically focused in Arizona. Workforce implications include employment for engineers and technical staff within The Boeing Company.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Lack of detailed service description makes value assessment challenging.
- Potential for cost overruns if not managed closely due to limited competition.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Awarded under an existing IDIQ, suggesting a streamlined process.
- Boeing is a well-established defense contractor with relevant expertise.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader aerospace and defense industry. The market for defense engineering services is substantial, driven by the continuous need for design, development, and sustainment of complex military systems. The award to The Boeing Company, a major defense contractor, aligns with industry trends where large, established firms often secure significant portions of government contracts due to their specialized capabilities and existing relationships.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The primary contractor, The Boeing Company, will likely perform the majority of the work, and there is no indication of a requirement for small business participation in this task order.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a task order under an IDIQ, the underlying contract likely has established oversight mechanisms. Transparency is dependent on the public availability of task order details and performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Department of Defense Engineering Services
- Army Aviation and Missile Command Contracts
- Boeing Defense, Space & Security Contracts
- FMS PPSS IDIQ2 Contracts
Risk Flags
- Sole-source award limits competitive pricing.
- Lack of detailed scope of work hinders full value assessment.
- Potential for cost escalation if not managed stringently.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, firm-fixed-price, sole-source, task-order, contract-vehicle, boeing, arizona, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.2 million to THE BOEING COMPANY. TASK ORDER AWARD UNDER FMS PPSS IDIQ2
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 $5.2 million.
What is the period of performance?
Start: 2026-01-01. End: 2026-12-31.
What specific engineering services are being procured under this task order, and how do they align with the Army's broader mission requirements?
The provided data classifies the service under NAICS code 541330 (Engineering Services) but does not detail the specific tasks. These services likely encompass a range of engineering disciplines such as systems engineering, design, analysis, testing, or technical support crucial for the development, sustainment, or modernization of Army platforms or systems. Without a detailed statement of work, it's impossible to definitively link these services to specific Army mission requirements. However, given the contractor (Boeing) and the agency (Army), it's probable these services support aviation, missile systems, or other complex defense technologies.
How does the $5.2 million award amount compare to historical spending on similar engineering services contracts by the Department of the Army?
Benchmarking the $5.2 million award requires comparing it to similar engineering services contracts awarded by the Department of the Army, ideally those with comparable scope, duration, and complexity. As this is a one-year task order, it represents a specific slice of potential long-term engineering support. Historical data would need to be analyzed to determine if this amount is within the typical range for such services. Factors like the specific engineering discipline, the level of expertise required, and the contractor's overhead rates significantly influence pricing, making direct comparisons challenging without more granular data.
What are the key risks associated with awarding this engineering services contract on a sole-source basis?
The primary risk of a sole-source award is the lack of competitive pressure, which can lead to suboptimal pricing and potentially higher costs for the government compared to a fully competed contract. There's also a risk that the government may not be leveraging the full range of available innovative solutions from the broader market. Furthermore, reliance on a single source can create dependency and potential vulnerabilities if that contractor faces performance issues or business disruptions. Effective contract management and oversight become even more critical in sole-source situations to mitigate these risks.
What is The Boeing Company's track record in delivering engineering services to the Department of Defense, particularly under IDIQ contracts?
The Boeing Company is a major defense contractor with extensive experience providing a wide array of engineering and technical services to the Department of Defense across various platforms and systems. They have a long history of performance under numerous IDIQ (Indefinite Delivery/Indefinite Quantity) contracts, which are common vehicles for procuring complex services over extended periods. While specific performance metrics for this particular task order are not yet available, Boeing's overall track record suggests a high level of capability and experience in delivering sophisticated engineering solutions to military clients. Past performance evaluations and contract award histories would provide more detailed insights.
How does the firm-fixed-price contract type mitigate financial risks for the government in this engineering services award?
A Firm Fixed Price (FFP) contract type is generally advantageous for the government as it shifts the majority of the cost risk to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs incurred. This provides budget certainty for the government, as the total cost is known upfront. It incentivizes the contractor to manage their costs efficiently to maximize profit. For engineering services, FFP is suitable when the scope of work is well-defined and the risks are manageable, preventing unexpected cost increases for the government.
What is the significance of this award being a 'Task Order' under an existing 'IDIQ' contract?
This award being a Task Order under an IDIQ (Indefinite Delivery/Indefinite Quantity) contract signifies that the foundational contract (FMS PPSS IDIQ2) has already been awarded, likely through a competitive process, establishing terms, conditions, and potentially ceiling prices for a broad category of services. The IDIQ contract allows the government to issue multiple task orders for specific requirements as they arise. This approach streamlines the procurement process for individual needs, reduces administrative burden, and allows for flexibility in acquiring services over time. It also implies that the basic qualifications and capabilities of The Boeing Company have already been vetted under the parent IDIQ.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
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: $10,685,098
Exercised Options: $10,685,098
Current Obligation: $5,235,697
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ26D0013
IDV Type: IDC
Timeline
Start Date: 2026-01-01
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-01-29
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