Boeing's $39.5M R&D contract for STARE program shows mixed value and limited competition
Contract Overview
Contract Amount: $39,458,030 ($39.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2016-05-03
End Date: 2021-09-30
Contract Duration: 1,976 days
Daily Burn Rate: $20.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF RASTER STARFIRE THREE APERTURE RESEARCH AND EXPERIMENTS (STARE)
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110
Plain-Language Summary
Department of Defense obligated $39.5 million to THE BOEING COMPANY for work described as: IGF::OT::IGF RASTER STARFIRE THREE APERTURE RESEARCH AND EXPERIMENTS (STARE) Key points: 1. Contract value appears reasonable for specialized R&D, but detailed benchmarking is needed. 2. Full and open competition was utilized, but the number of bidders is not specified. 3. Potential risks include cost overruns given the Cost Plus Fixed Fee structure. 4. Performance context is limited to R&D for a specific defense application. 5. This contract falls within the Defense sector's R&D spending, with a focus on advanced technologies. 6. The contract was awarded to a large, established defense contractor.
Value Assessment
Rating: fair
The contract's total value of approximately $39.5 million over five years for specialized R&D is difficult to benchmark without more specific details on the deliverables and the complexity of the STARE program. Cost Plus Fixed Fee contracts can sometimes lead to higher costs than fixed-price agreements if not managed tightly. Comparing this to similar advanced research projects within the Department of Defense would provide better insight into its value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the number of bids received is not detailed, making it hard to assess the true level of competition. A robust competition typically involves multiple bidders vying for the contract, driving down prices and encouraging innovation. Without knowing the number of bidders, it's difficult to definitively say if the competition was effective in securing the best value.
Taxpayer Impact: Full and open competition is intended to ensure that taxpayers benefit from the most competitive pricing and innovative solutions available in the market.
Public Impact
The primary beneficiaries are the Department of Defense, specifically the Air Force, which receives advanced research capabilities. The services delivered are research and development in physical and engineering sciences, likely for national security applications. The contract has a geographic impact in New Mexico, where the work is presumably performed. Workforce implications include employment for highly skilled scientists and engineers in the R&D sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending if not closely monitored.
- Lack of specific performance metrics makes it difficult to assess the success of the R&D.
- Limited information on the number of bidders in the full and open competition.
Positive Signals
- Awarded under full and open competition, suggesting a broad search for qualified contractors.
- Contract awarded to a major defense contractor with a track record in R&D.
- The contract supports critical research and development for national security.
Sector Analysis
This contract falls within the broader Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would involve looking at other advanced research contracts awarded by the Department of Defense for similar technological areas, such as aerospace or advanced materials.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, The Boeing Company, is a large aerospace and defense corporation. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless Boeing actively engages small businesses in its subcontracting efforts.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Given the R&D nature and Cost Plus Fixed Fee structure, rigorous oversight of expenditures and progress is crucial. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency is enhanced through contract award databases, but detailed programmatic oversight is internal to the agency.
Related Government Programs
- Department of Defense Research and Development Programs
- Air Force Advanced Technology Development
- Aerospace Research Contracts
- National Security R&D Initiatives
Risk Flags
- Cost Overrun Risk (CPFF Contract Type)
- Uncertain R&D Scope
- Limited Competition Visibility
Tags
defense, department-of-defense, department-of-the-air-force, research-and-development, cost-plus-fixed-fee, full-and-open-competition, large-contractor, new-mexico, aerospace, technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.5 million to THE BOEING COMPANY. IGF::OT::IGF RASTER STARFIRE THREE APERTURE RESEARCH AND EXPERIMENTS (STARE)
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 Air Force).
What is the total obligated amount?
The obligated amount is $39.5 million.
What is the period of performance?
Start: 2016-05-03. End: 2021-09-30.
What is the specific nature of the STARE program and its intended applications?
The STARE (STARFIRE THREE APERTURE RESEARCH AND EXPERIMENTS) program, as indicated by the contract description, is focused on research and development in physical and engineering sciences. While the specific applications are not detailed in the provided data, the context of it being a Department of Defense contract suggests it is likely related to national security, potentially involving advanced sensor technology, data processing, or experimental systems for intelligence, surveillance, or reconnaissance (ISR) purposes. The 'three aperture' designation might hint at multi-sensor integration or advanced imaging techniques. Further details would require access to program documentation or public statements from the Air Force.
How does the Cost Plus Fixed Fee (CPFF) contract type influence the overall cost and risk for this R&D project?
The Cost Plus Fixed Fee (CPFF) contract type means the contractor (Boeing) is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. For R&D projects, CPFF can be advantageous when the scope of work is uncertain or subject to change, as it allows flexibility to explore different avenues. However, it shifts much of the cost risk to the government. If costs escalate beyond initial estimates, the government pays more. The fixed fee provides the contractor with an incentive to control costs to some extent, but the primary risk mitigation for the government lies in robust oversight, clear definition of allowable costs, and effective program management to ensure the research objectives are met efficiently.
What is the historical spending pattern for similar R&D contracts within the Department of the Air Force?
Historical spending on R&D contracts within the Department of the Air Force is substantial and varies significantly based on technological focus areas. The Air Force consistently invests billions annually in R&D to maintain its technological edge. Contracts for advanced research, like the STARE program, often involve specialized contractors and can range from millions to hundreds of millions of dollars. Spending patterns are influenced by evolving threats, technological advancements, and strategic priorities. Analyzing past awards for similar research areas (e.g., sensor development, aerospace engineering, advanced materials) would reveal typical contract values, durations, and the prevalence of different contract types used for R&D.
What is Boeing's track record with Cost Plus Fixed Fee R&D contracts for the Department of Defense?
The Boeing Company has an extensive track record of performing research and development contracts for the Department of Defense, including those utilizing Cost Plus Fixed Fee (CPFF) arrangements. As a major defense contractor, Boeing frequently engages in complex, long-term R&D projects where the scope may evolve. Their experience spans numerous technological domains. While specific performance metrics for all past CPFF contracts are not publicly detailed, Boeing's continued selection for such high-value R&D work suggests a generally satisfactory performance history in terms of meeting research objectives and managing costs within the framework of these agreements. However, like any large contractor, there may be instances of cost overruns or performance challenges on specific projects.
How does the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code (541712) typically compare in terms of contract value and duration?
The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' encompasses a wide array of scientific and technical research activities. Contracts under this code can vary dramatically in value and duration. Small, specialized research projects might be valued in the hundreds of thousands of dollars and last a year or two, while large-scale, multi-disciplinary R&D efforts, particularly those funded by agencies like the Department of Defense, can easily reach tens or hundreds of millions of dollars and span five to ten years or more. The STARE contract's value of approximately $39.5 million over roughly five years falls within a moderate to significant range for this NAICS code, especially considering its defense application.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA945113R0243
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 4411 THE 25 WAY, SUITE 350, ALBUQUERQUE, NM, 87109
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: $41,356,239
Exercised Options: $41,356,239
Current Obligation: $39,458,030
Subaward Activity
Number of Subawards: 70
Total Subaward Amount: $13,483,898
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA945116D0001
IDV Type: IDC
Timeline
Start Date: 2016-05-03
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2021-08-12
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)