Boeing awarded $12.18M for R&D services, with a 1792-day duration, primarily in New Mexico
Contract Overview
Contract Amount: $12,185,404 ($12.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2008-02-04
End Date: 2012-12-31
Contract Duration: 1,792 days
Daily Burn Rate: $6.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: LASIR TO 0002
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87109
Plain-Language Summary
Department of Defense obligated $12.2 million to THE BOEING COMPANY for work described as: LASIR TO 0002 Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Research and Development focus indicates investment in future capabilities. 3. Cost Plus Fixed Fee contract type may incentivize cost overruns if not closely monitored. 4. Performance period spans nearly five years, allowing for significant project development. 5. The contract is categorized under R&D in Physical, Engineering, and Life Sciences. 6. Sole contractor indicates a specific need or specialized capability from Boeing.
Value Assessment
Rating: fair
The contract value of $12.18 million for a nearly five-year R&D effort appears moderate. Benchmarking this against similar R&D contracts is challenging without more specific service details. The Cost Plus Fixed Fee (CPFF) structure necessitates careful oversight to ensure value for money, as it can lead to higher costs if not managed effectively. The absence of a specific Product Service Code (PSC) makes direct comparison difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award process is a positive sign for price discovery and potentially achieving a fair market price. This approach generally leads to better outcomes for the government.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and pricing for the research and development services required by the Department of Defense.
Public Impact
The Department of Defense benefits from advanced research and development capabilities. Services delivered likely contribute to technological advancements in physical, engineering, and life sciences. The primary geographic impact is in New Mexico, potentially supporting local technical expertise and employment. Workforce implications include specialized R&D roles within Boeing and potentially supporting industries in New Mexico.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to prevent cost escalation.
- Limited public detail on the specific R&D objectives makes it hard to assess performance outcomes.
- The duration of the contract (1792 days) requires sustained management attention.
Positive Signals
- Awarded via full and open competition, suggesting a healthy market and potential for good value.
- The contract supports critical research and development for the Department of Defense.
- Boeing's established track record as a major defense contractor provides a degree of reliability.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense modernization, involving innovation in materials, systems, and processes. The market for such specialized R&D services is often dominated by large, established aerospace and defense firms like Boeing, due to the high technical expertise and infrastructure required. Comparable spending benchmarks would depend heavily on the specific nature of the R&D undertaken.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no explicit information regarding subcontracting plans for small businesses. Without further details, the direct impact on the small business ecosystem is unclear, though large prime contractors like Boeing often engage small businesses for specialized support.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting agency (Department of the Air Force) through contract officers and technical representatives. Accountability measures would be tied to the Cost Plus Fixed Fee contract terms, requiring regular reporting and performance reviews. Transparency is moderate, with basic award details available, but specific project milestones and expenditures are likely internal.
Related Government Programs
- Defense Research and Development
- Aerospace Engineering Services
- Advanced Technology Development
- Department of Defense Research Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires close monitoring for cost control.
- Limited public information on specific R&D deliverables hinders performance assessment.
- Potential for technical or schedule overruns inherent in R&D projects.
Tags
research-and-development, department-of-defense, air-force, cost-plus-fixed-fee, full-and-open-competition, new-mexico, aerospace, technology-development, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.2 million to THE BOEING COMPANY. LASIR TO 0002
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 $12.2 million.
What is the period of performance?
Start: 2008-02-04. End: 2012-12-31.
What specific research and development objectives does this contract aim to achieve?
The provided data indicates the contract is for 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' with the North American Industry Classification System (NAICS) code 541712. However, the specific objectives, such as developing new materials, improving existing technologies, or exploring novel engineering principles, are not detailed in the summary data. Further investigation into the contract's statement of work (SOW) or associated documentation would be necessary to understand the precise R&D goals and their potential impact on defense capabilities.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar R&D efforts?
Cost Plus Fixed Fee (CPFF) contracts are common in R&D where the scope of work is not precisely defined at the outset, allowing for flexibility as research progresses. Unlike fixed-price contracts, CPFF reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. This contrasts with Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) contracts, which include mechanisms to adjust the fee based on performance or cost targets. While CPFF offers flexibility, it carries a higher risk of cost overruns if not rigorously managed, as the contractor is incentivized to incur costs to achieve the fixed fee, rather than necessarily minimizing them.
What is Boeing's track record with similar Cost Plus Fixed Fee R&D contracts within the Department of Defense?
Boeing, as a major defense contractor, has extensive experience with various contract types, including CPFF, across numerous R&D programs for the Department of Defense. Analyzing Boeing's historical performance on similar CPFF R&D contracts would involve reviewing past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented cost variances or disputes. While specific data for this contract isn't available, Boeing's long-standing relationship with the DoD suggests a familiarity with managing such agreements, though diligent oversight remains crucial for each individual contract.
What are the potential risks associated with the 'Research and Development in the Physical, Engineering, and Life Sciences' category for a defense application?
Risks in this R&D category for defense applications can be multifaceted. Technical risks include the possibility that the research may not yield the desired technological breakthroughs or that the developed technology may prove infeasible for operational deployment. Schedule risks arise from the inherent uncertainty in R&D, potentially leading to delays. Cost risks are significant, especially with CPFF contracts, as unforeseen challenges can escalate expenses. Furthermore, there are strategic risks if the developed technology becomes obsolete before deployment or if adversaries achieve similar advancements first. Ensuring robust project management and contingency planning is vital.
How does the $12.18 million award compare to historical spending on R&D by the Air Force in New Mexico?
Directly comparing this $12.18 million award to historical spending on R&D by the Air Force in New Mexico requires access to detailed historical spending databases and specific R&D program information. The provided data only offers a snapshot of this single contract. To provide a meaningful comparison, one would need to aggregate Air Force R&D spending in New Mexico over several fiscal years, identify contracts with similar NAICS codes (541712), and analyze the distribution of award values. Without such comprehensive data, it's difficult to ascertain if this contract represents a typical, large, or small investment within that specific context.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6200 UPTOWN BLVD, STE 240, ALBUQUERQUE, NM, 87110
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,700,557
Exercised Options: $20,700,557
Current Obligation: $12,185,404
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA945108D0179
IDV Type: IDC
Timeline
Start Date: 2008-02-04
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2018-10-17
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