DoD Awards Boeing $15.5M for Satellite Telecommunications, a Follow-On to Competed Action
Contract Overview
Contract Amount: $15,488,416 ($15.5M)
Contractor: Boeing Company
Awarding Agency: Department of Defense
Start Date: 2003-12-19
End Date: 2008-12-31
Contract Duration: 1,839 days
Daily Burn Rate: $8.4K/day
Competition Type: FOLLOW ON TO COMPETED ACTION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Place of Performance
Location: SEAL BEACH, ORANGE County, CALIFORNIA, 90740
Plain-Language Summary
Department of Defense obligated $15.5 million to BOEING COMPANY for work described as: Key points: 1. Contract value of $15.5 million for satellite telecommunications. 2. Awarded to Boeing Company, a major defense contractor. 3. Follow-on action suggests potential for ongoing needs and limited competition. 4. Sector is Defense, specifically satellite telecommunications.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee (CPAF), which can lead to higher costs if not managed effectively. The awarded amount is $15.5 million, but the final cost could be higher based on performance incentives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This is a follow-on to a competed action, indicating that while there was initial competition, this specific award may have limited competition due to specialized requirements or existing contractor performance.
Taxpayer Impact: Taxpayer funds are being used for essential defense telecommunications, with the cost-plus-award-fee structure requiring careful oversight to ensure value for money.
Public Impact
Ensures critical satellite telecommunications capabilities for the Department of Defense. Supports advanced technology and infrastructure within the defense sector. Potential for job creation and economic activity related to aerospace and defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contract type can incentivize higher costs.
- Follow-on action may indicate limited future competition.
- Lack of specific performance metrics makes value assessment difficult.
Positive Signals
- Addresses critical national security needs.
- Awarded to a reputable and experienced contractor.
- Follow-on nature suggests a proven solution.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on satellite telecommunications. Spending in this area is crucial for modern military operations, intelligence gathering, and global communication.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Larger defense contracts often involve complex supply chains where small businesses may play a subcontracting role.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The Cost Plus Award Fee structure necessitates robust oversight to manage costs and ensure performance objectives are met.
Related Government Programs
- Satellite Telecommunications
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Award Fee structure
- Follow-on to competed action
- Lack of detailed performance metrics
- Potential for cost escalation
Tags
satellite-telecommunications, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.5 million to BOEING COMPANY. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $15.5 million.
What is the period of performance?
Start: 2003-12-19. End: 2008-12-31.
What was the original competition for this contract, and what were the key factors that led to this being a follow-on action?
The original competition likely established the baseline for satellite telecommunications services. This follow-on action suggests that the initial contract was successful, leading the agency to continue with the same contractor. Factors could include specialized knowledge, proven performance, or the high cost and time associated with re-competing a complex system.
How does the Cost Plus Award Fee structure impact the potential cost overruns and taxpayer value for this satellite telecommunications contract?
CPAF contracts allow for costs to be reimbursed plus a fee that is adjusted based on performance. While intended to incentivize good performance, it can lead to higher final costs if performance targets are easily met or if the award fee criteria are not strictly defined. Effective oversight is crucial to ensure the fee truly reflects exceptional value and not just baseline performance.
What are the specific performance metrics and award fee criteria used to evaluate Boeing's performance on this satellite telecommunications contract?
The provided data does not detail the specific performance metrics or award fee criteria. These are critical components of a CPAF contract that determine how much of the potential award fee the contractor receives. Without this information, it's difficult to fully assess the effectiveness of the contract in driving desired outcomes and ensuring taxpayer value.
Industry Classification
NAICS: Information › Satellite Telecommunications › Satellite Telecommunications
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FOLLOW ON TO COMPETED ACTION
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: THE Boeing Company (UEI: 009256819)
Address: 2201 SEAL BEACH BLVD, SEAL BEACH, CA, 90740
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $226,339
Exercised Options: $226,339
Current Obligation: $15,488,416
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2003-12-19
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2017-08-11
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