Boeing Awarded $42M ISR Service Hours Contract by DoD Amidst Full and Open Competition
Contract Overview
Contract Amount: $42,006,019 ($42.0M)
Contractor: THE Boeing Company (0674)
Awarding Agency: Department of Defense
Start Date: 2008-03-12
End Date: 2009-03-31
Contract Duration: 384 days
Daily Burn Rate: $109.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ISR SERVICE HOUR TAS::17 1804::TAS
Place of Performance
Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63134, UNITED STATES OF AMERICA
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $42.0 million to THE BOEING COMPANY (0674) for work described as: ISR SERVICE HOUR TAS::17 1804::TAS Key points: 1. Significant contract value of $42M for ISR services. 2. Awarded to a single, large defense contractor, Boeing. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. Contract duration spans over a year, indicating ongoing service needs.
Value Assessment
Rating: good
The contract value of $42M for ISR service hours appears reasonable given the duration and the provider. Benchmarking against similar ISR service contracts would provide a more definitive assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to competitive pricing. The use of a firm fixed price contract further incentivizes cost control by the contractor.
Taxpayer Impact: Taxpayer funds are being utilized for critical ISR services, with competition aiming to ensure efficient allocation.
Public Impact
Enhances national security through intelligence, surveillance, and reconnaissance capabilities. Supports military operations by providing essential data and situational awareness. Contributes to the defense industrial base by engaging a major aerospace company.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creeps beyond initial fixed price.
- Dependence on a single contractor for critical ISR services.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract structure.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on intelligence, surveillance, and reconnaissance (ISR) services. Spending in this area is critical for national security and often involves large, complex contracts with established providers.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no explicit information on subcontracting to small businesses within this data, which could be an area for further review.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The firm fixed price nature and full and open competition suggest established oversight mechanisms are in place.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for scope creep impacting cost.
- Dependence on a single large contractor.
- Lack of explicit small business participation data.
- Limited insight into specific ISR capabilities procured.
Tags
aircraft-manufacturing, department-of-defense, mo, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.0 million to THE BOEING COMPANY (0674). ISR SERVICE HOUR TAS::17 1804::TAS
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY (0674).
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $42.0 million.
What is the period of performance?
Start: 2008-03-12. End: 2009-03-31.
What specific ISR capabilities are being procured with these service hours, and how do they align with current military intelligence requirements?
The data specifies 'ISR SERVICE HOUR TAS', indicating the procurement of time-based services for intelligence, surveillance, and reconnaissance. While the exact capabilities are not detailed, these hours likely support a range of functions such as aerial surveillance, data collection, analysis, and reporting, crucial for maintaining situational awareness and informing strategic decisions in various operational theaters.
What is the historical performance record of The Boeing Company in delivering ISR services under similar firm fixed-price contracts?
Assessing Boeing's historical performance on similar contracts is vital. A review of past delivery timelines, quality of service, and adherence to budget on prior ISR contracts would indicate their reliability and capability. Positive past performance would bolster confidence in this current award, while any significant issues might raise concerns about potential risks and future effectiveness.
How does the unit cost of these ISR service hours compare to industry benchmarks or previous government contracts for comparable services?
Benchmarking the unit cost of these ISR service hours against industry standards and prior government procurements is essential for evaluating value for money. Without specific unit cost data or comparable contract information, it's difficult to definitively assess if this $42M award represents an efficient use of taxpayer funds. Further analysis would require access to detailed pricing structures.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: M6785407R2052
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Boeing Company (UEI: 009256819)
Address: 6200 J S MCDONNELL BLVD, SAINT LOUIS, MO, 63134
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $46,149,977
Exercised Options: $46,149,977
Current Obligation: $42,006,019
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785407D2052
IDV Type: IDC
Timeline
Start Date: 2008-03-12
Current End Date: 2009-03-31
Potential End Date: 2009-03-31 00:00:00
Last Modified: 2016-10-17
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