DoD Awards Boeing $41.1M for Airborne Surveillance Systems, Extending Contract Through December 2010
Contract Overview
Contract Amount: $41,142,000 ($41.1M)
Contractor: THE Boeing Company (0674)
Awarding Agency: Department of Defense
Start Date: 2010-02-01
End Date: 2010-12-31
Contract Duration: 333 days
Daily Burn Rate: $123.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: [PIIN: M67854-07-D-2052-0018] AIRBORNE SURVEILLANCE (SCANEAGLE - ISR)
Plain-Language Summary
Department of Defense obligated $41.1 million to THE BOEING COMPANY (0674) for work described as: [PIIN: M67854-07-D-2052-0018] AIRBORNE SURVEILLANCE (SCANEAGLE - ISR) Key points: 1. The contract is for airborne surveillance systems, specifically the ScanEagle ISR platform. 2. Boeing, a major defense contractor, holds this award. 3. The Department of the Army is the procuring agency. 4. This award falls under the Aircraft Manufacturing NAICS code. 5. The contract type is Firm Fixed Price, indicating predictable costs.
Value Assessment
Rating: good
The total award amount is $41.1 million. Without specific per-unit cost data or benchmarks for ScanEagle ISR systems, a precise value assessment is difficult. However, the firm fixed-price nature suggests cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The specific price discovery mechanisms used during this process are not detailed, but the competitive nature is a positive sign for cost efficiency.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple bids and driving down costs.
Public Impact
Enhances intelligence, surveillance, and reconnaissance capabilities for the Army. Supports ongoing military operations with critical aerial monitoring. Provides advanced drone technology for data collection and analysis. Contributes to situational awareness in complex environments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition
- Firm fixed price contract type
- Established defense contractor
Sector Analysis
This contract falls within the Defense sector, specifically related to aircraft manufacturing and unmanned aerial systems. Spending in this area is critical for national security and technological advancement, with benchmarks often tied to program scope and system capabilities.
Small Business Impact
The data indicates the awardee is The Boeing Company, a large prime contractor. There is no information provided to suggest that small businesses were significantly involved as subcontractors or partners in this specific delivery order.
Oversight & Accountability
The Department of the Army is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms would apply to ensure performance and adherence to contract terms. Further details on specific oversight activities are not available.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for platform obsolescence over time
- Dependence on a single system for critical ISR functions
- Geopolitical factors impacting operational deployment
Tags
aircraft-manufacturing, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.1 million to THE BOEING COMPANY (0674). [PIIN: M67854-07-D-2052-0018] AIRBORNE SURVEILLANCE (SCANEAGLE - ISR)
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $41.1 million.
What is the period of performance?
Start: 2010-02-01. End: 2010-12-31.
What is the historical performance of ScanEagle ISR systems in similar operational environments?
The ScanEagle ISR system has a proven track record in various operational theaters, providing persistent surveillance and reconnaissance capabilities. Its effectiveness is often highlighted in counter-insurgency and border patrol missions. Historical data suggests reliability and adaptability, contributing to improved situational awareness and decision-making for ground forces.
Are there any potential risks associated with relying on a single platform like ScanEagle for critical ISR missions?
Over-reliance on a single platform can pose risks, including vulnerability to system failures, obsolescence, or targeted attacks. Diversification of ISR assets and capabilities can mitigate these risks. However, the ScanEagle's specific role and integration within a broader ISR architecture would determine the extent of this risk.
How does the firm fixed-price contract structure impact the government's ability to manage costs for this surveillance system?
A firm fixed-price contract provides cost certainty for the government, as the price is set regardless of the contractor's actual costs. This structure incentivizes the contractor to control expenses efficiently. It limits the government's exposure to cost overruns but may require careful negotiation upfront to ensure a fair price.
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
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: $92,006,182
Exercised Options: $41,142,000
Current Obligation: $41,142,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785407D2052
IDV Type: IDC
Timeline
Start Date: 2010-02-01
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 12:00:00
Last Modified: 2021-07-15
More Contracts from THE Boeing Company (0674)
- 199809!5700!0214!GD90 !oc-Alc/Lkd (CLS Aircraft) !F3460198C0125 !A!*!* !19980629!19990930!006265946!006265946!009256819!n!0pxv4!mcdonnell Douglas Corporation !lambert ST Louis Airport !saint Louis !mo!63103!31276!189!29!hazelwood !ST. Louis !missouri !0001!+000000119687!y!n!000000000000!r408!program Management/Support Services !a1a!airframes and Spares !3adb!c-10 !3728!3!*!*!*!B!A!*!A !N!J!2!002!B!* !C!N!Z!* !* !y!c!*!c!c!a!a!a!*!* !*!n!a!c!n!*!*!*!*!*! — $2.8B (Department of Defense)
- 200303!000029!5700!GU86 !asc/Ywk !F3365701D2074 !A!N! !N!0002 !20021231!20060831!006265946!006265946!009256819!n!mcdonnell Douglas Corporation !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000057896085!n!n!000000000000!u099!other Education & Training Services !a1a!airframes and Spares !3000!NOT Discernable or Classified !336413!E! !5!B!M! !A! !99990909!B! ! !A! !a!n!j!2!010!b! !Z!Y!F! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $616.8M (Department of Defense)
- 199705!5700!0015!GU47 !asc/Ytk !F3365795C0057 !A!*!P00007 !19970211!19991019!006265946!006265946!009256819!n!0pxv4!mcdonnell Douglas Corporation !lambert ST Louis Airport !saint Louis !mo!63103!65000!510!29!st. Louis !ST. Louis (city) !missouri !0001!+000000048000!n!n!000000000000!1560!airframe Structural Components !a1a!airframes and Spares !3atb!t-38 Talon !3721!3!*!s!c!b!a!*!a !N!R!2!008!B!* !A!N!Z!* !* !n!c!*!c!c!a!a!a!*!* !*!n!a!c!n!*!*!*!*!*! — $417.1M (Department of Defense)
- 199712!1700!1802!aa4m0!naval AIR Systems Command !N0001997C0136 !A!*!* !19970624!20000530!006265946!006265946!009256819!n!76301!mcdonnell Douglas Corporation !lambert ST Louis Airport !saint Louis !mo!63103!65000!510!29!st. Louis !ST. Louis (city) !missouri !0001!+000230000000!n!n!000000000000!1510!aircraft Fixed Wing !a1a!airframes and Spares !2afx!f-18 Hornet !3721!1!*!*!*!B!A!*!D !n!u!1!001!n!1a!a!n!z!* !* !n!c!*!a!a!a!a!a!*!* !*!n!a!c!n!*!*!*!*!*! — $285.9M (Department of Defense)
- Federal Contract — $220.0M (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)