DoD's $9.8M TACTIC PHASE II contract to Boeing awarded for R&D in physical sciences
Contract Overview
Contract Amount: $9,811,994 ($9.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2007-09-21
End Date: 2008-12-23
Contract Duration: 459 days
Daily Burn Rate: $21.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TACTIC PHASE II
Place of Performance
Location: SAINT LOUIS, ST. LOUIS (CITY) County, MISSOURI, 63166
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $9.8 million to THE BOEING COMPANY for work described as: TACTIC PHASE II Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. The contract duration of 459 days indicates a focused research effort. 3. Research and Development in Physical, Engineering, and Life Sciences is a critical area for defense innovation. 4. The contractor, The Boeing Company, is a major defense industrial base participant. 5. Awarded by the Department of the Army, aligning with ground-based research needs. 6. The contract type (Cost Plus Fixed Fee) is common for R&D where costs are uncertain.
Value Assessment
Rating: fair
Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and the lack of directly comparable public data. The award amount of $9.8 million for a 459-day research and development effort appears within a reasonable range for advanced technology projects undertaken by major contractors. However, without detailed technical specifications and performance metrics, a definitive value-for-money assessment is difficult. The Cost Plus Fixed Fee structure implies that the government is bearing the cost risk, with the contractor incentivized by a fixed fee.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple capable contractors had the opportunity to bid. The presence of 7 bidders suggests a competitive environment for this research and development requirement. A higher number of bidders generally leads to better price discovery and potentially more innovative solutions, as contractors vie for the award.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider range of technological solutions being explored for defense applications.
Public Impact
The primary beneficiaries are the Department of Defense and its research arms, seeking advancements in physical sciences. The services delivered involve research and development activities aimed at enhancing defense capabilities. The geographic impact is likely concentrated around the contractor's research facilities, primarily in Missouri. Workforce implications include employment for scientists, engineers, and support staff involved in advanced R&D.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
- The specialized nature of R&D makes it difficult to benchmark performance and value against other contracts.
- Reliance on a single large contractor like Boeing for critical R&D may present concentration risk.
Positive Signals
- Awarded through full and open competition, indicating a healthy market for this type of research.
- The contractor, Boeing, has a strong track record in defense R&D and complex systems integration.
- The contract addresses a specific research need within the Department of Defense, contributing to technological advancement.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical sciences. This sector is characterized by high innovation, significant government investment, and the involvement of specialized contractors. The market size for defense R&D is substantial, with agencies like the Department of Defense being major clients. This contract represents a small portion of overall defense R&D spending but contributes to the broader ecosystem of technological advancement.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The award to a large prime contractor like Boeing suggests that the focus was on specialized capabilities typically found in larger organizations for this particular R&D effort.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting of costs and progress. Transparency is generally maintained through contract databases, though specific technical details of R&D may be sensitive.
Related Government Programs
- Department of Defense Research and Development Programs
- Advanced Technology Development Contracts
- Physical Sciences Research Initiatives
Risk Flags
- Cost Plus Fixed Fee contract type requires careful cost monitoring.
- Research and Development projects inherently carry technical and schedule risks.
- Limited public data on specific R&D outcomes makes value assessment difficult.
Tags
department-of-defense, department-of-the-army, research-and-development, physical-sciences, cost-plus-fixed-fee, full-and-open-competition, the-boeing-company, missouri, contract-award, advanced-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.8 million to THE BOEING COMPANY. TACTIC PHASE II
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 $9.8 million.
What is the period of performance?
Start: 2007-09-21. End: 2008-12-23.
What is the historical spending pattern for TACTIC PHASE II or similar research initiatives by the Department of the Army?
Analyzing historical spending for 'TACTIC PHASE II' specifically is difficult without more context, as it appears to be a project name rather than a recurring program. However, the Department of the Army consistently invests billions annually in Research, Development, Test, and Evaluation (RDT&E). This includes significant allocations for physical sciences, engineering, and advanced technologies. Spending in these areas fluctuates based on strategic priorities, technological advancements, and budget cycles. Contracts like this, focused on specific R&D phases, are typical components of larger R&D portfolios. The $9.8 million awarded here represents a focused investment within a broader RDT&E framework, contributing to the Army's long-term technological superiority goals.
How does the contractor's performance on this contract compare to their overall track record in R&D?
The Boeing Company has an extensive and generally strong track record in defense R&D, undertaking numerous complex projects across various domains, including aerospace, electronics, and systems engineering. While specific performance metrics for the 'TACTIC PHASE II' contract are not publicly detailed, Boeing's history suggests a capacity for delivering on advanced research objectives. Their involvement in major defense programs indicates a proven ability to manage R&D efforts, navigate technical challenges, and meet contractual requirements. However, like any large contractor, Boeing has experienced challenges on specific projects. A comprehensive assessment would require examining performance reviews and delivery outcomes for this particular contract, which are not readily available in the public domain.
What are the key risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for R&D?
The primary risk with a CPFF contract, especially for R&D, is cost overrun. While the contractor receives a fixed fee, the government bears the actual costs incurred. If the research proves more complex or time-consuming than initially estimated, the total cost to the government can escalate significantly beyond initial projections. Effective oversight, stringent cost controls, and clear performance milestones are crucial to mitigate this risk. Another risk is the potential for scope creep, where the research objectives expand without corresponding adjustments to the contract's cost and schedule. The contractor's incentive is to complete the work, but the government must ensure the work remains aligned with the original objectives and budget constraints.
Can the value of this $9.8 million R&D contract be benchmarked against similar government-funded research projects?
Benchmarking the value of this specific R&D contract is challenging due to the inherent uniqueness of research projects and the proprietary nature of much defense R&D. Direct comparisons are difficult because each project has distinct technical objectives, methodologies, and expected outcomes. However, the award amount of $9.8 million for a 459-day effort by a major contractor like Boeing can be broadly contextualized. Government R&D spending varies widely, with individual contracts ranging from a few hundred thousand dollars for early-stage research to billions for large-scale development programs. This contract appears to represent a mid-tier investment for a specific, focused research phase, likely aimed at exploring a particular technological concept or capability.
What is the strategic importance of R&D in physical sciences for the Department of the Army?
R&D in physical sciences is strategically vital for the Department of the Army as it underpins advancements in materials science, energy, sensors, propulsion, and numerous other foundational technologies. These advancements are critical for developing next-generation weapon systems, improving soldier protection, enhancing operational efficiency, and maintaining a technological edge over adversaries. For instance, breakthroughs in materials science can lead to lighter, stronger armor, while innovations in energy can improve power sources for equipment. Understanding and manipulating physical phenomena allows the Army to develop novel capabilities that address evolving threats and operational requirements, ensuring future battlefield dominance.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 7
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: J S MCDONNELL BLVD, SAINT LOUIS, MO, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $16,598,829
Exercised Options: $9,811,994
Current Obligation: $9,811,994
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-09-21
Current End Date: 2008-12-23
Potential End Date: 2008-12-23 00:00:00
Last Modified: 2008-10-23
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