Boeing awarded $184M for airborne radar equipment, with a significant portion for sustainment and support
Contract Overview
Contract Amount: $28,579,314 ($28.6M)
Contractor: Boeing Company, the
Awarding Agency: Department of Defense
Start Date: 2001-02-14
End Date: 2006-11-17
Contract Duration: 2,102 days
Daily Burn Rate: $13.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200106!000050!5700!GV56 !ESC/AWK !F1962800C0009 !A!N!*!N! !20010214!20021031!184173441!184173441!009256819!N!THE BOEING COMPANY !20403 68TH AVE S !KENT !WA!98032!63000!033!53!SEATTLE !KING !WASHINGTON!+000018860202!Y!N!000000000000!5841!RADAR EQUIPMENT, AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !336411!*!*!3! ! ! !*!*!*!B!*!*!N!Z!B !N!J!1!001!N!4A!A!Y!A! ! !N!C!N! ! ! !Z!Z!A!A!* !A!C!N! ! ! ! ! ! !0001!
Place of Performance
Location: KENT, KING County, WASHINGTON, 98032
Plain-Language Summary
Department of Defense obligated $28.6 million to BOEING COMPANY, THE for work described as: 200106!000050!5700!GV56 !ESC/AWK !F1962800C0009 !A!N!*!N! !20010214!20021031!184173441!184173441!009256819!N!THE BOEING COMPANY !20403 68TH AVE S !KENT !WA!98032!63000!033!53!SEATTLE !KING … Key points: 1. Contract value suggests a long-term commitment to sustainment and potential upgrades for airborne radar systems. 2. The sole-source nature raises questions about price competitiveness and potential for cost savings through competition. 3. Significant duration of the contract indicates a need for ongoing support and maintenance of critical defense assets. 4. The award to a single, large prime contractor may limit opportunities for smaller businesses in the supply chain. 5. The contract's focus on airborne radar places it within a critical niche of defense electronics and communication systems.
Value Assessment
Rating: fair
The total value of $184,173,441 over approximately 5 years suggests a substantial investment in airborne radar systems. Without comparable sole-source contracts for similar systems, a precise value-for-money assessment is difficult. However, the duration and scope imply a need for specialized support, which can command premium pricing. Benchmarking against industry standards for radar sustainment and upgrade services would be necessary for a more definitive evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating that only one responsible source, The Boeing Company, was determined to be capable of fulfilling the requirement. This approach is often used for highly specialized systems where a single contractor possesses unique knowledge, technology, or manufacturing capabilities. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs for the government.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without competition, there is less pressure on the contractor to offer the most cost-effective solution.
Public Impact
The primary beneficiaries are the U.S. Air Force and potentially other branches of the Department of Defense requiring advanced airborne radar capabilities. The contract delivers essential services related to the sustainment, maintenance, and potential upgrades of airborne radar equipment. The geographic impact is likely concentrated around military bases and operational areas where these aircraft and radar systems are deployed. This contract supports a highly skilled workforce within The Boeing Company and its subcontractors, specializing in aerospace engineering and defense manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure, potentially increasing costs.
- Lack of detailed performance metrics in the provided data makes assessing efficiency challenging.
- Long contract duration could lead to cost overruns if not managed tightly.
Positive Signals
- Award to a prime contractor with extensive experience in aerospace and defense.
- Contract addresses critical national defense needs for advanced radar technology.
- Significant investment indicates a commitment to maintaining and enhancing military capabilities.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on aerospace and defense electronics. The market for airborne radar systems is dominated by a few large, established defense contractors like Boeing, Lockheed Martin, and Northrop Grumman. Spending in this area is driven by evolving threats, technological advancements, and the need for superior situational awareness in military operations. Comparable spending benchmarks would involve analyzing other large sole-source or competitively awarded contracts for similar radar systems or their sustainment.
Small Business Impact
As a sole-source award to a large prime contractor, this contract may have limited direct set-aside opportunities for small businesses. However, The Boeing Company is expected to have subcontracting plans. The extent to which small businesses will participate depends on Boeing's subcontracting strategy and the availability of small businesses capable of providing specialized components or services for airborne radar systems.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures would include contract performance reviews, milestone tracking, and financial audits. Transparency is often limited for sole-source defense contracts, especially concerning technical specifications and pricing details, though reporting requirements exist.
Related Government Programs
- Airborne Warning and Control System (AWACS)
- Advanced Tactical Radar Programs
- Defense Electronics Procurement
- Aerospace Sustainment Contracts
Risk Flags
- Sole-source award may limit cost savings.
- Contract duration and value indicate significant long-term financial commitment.
- Lack of detailed performance metrics in summary data.
Tags
defense, department-of-defense, air-force, sole-source, large-contract, aerospace, radar-equipment, airborne, sustainment, time-and-materials, washington, boeing-company
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.6 million to BOEING COMPANY, THE. 200106!000050!5700!GV56 !ESC/AWK !F1962800C0009 !A!N!*!N! !20010214!20021031!184173441!184173441!009256819!N!THE BOEING COMPANY !20403 68TH AVE S !KENT !WA!98032!63000!033!53!SEATTLE !KING !WASHINGTON!+000018860202!Y!N!000000000000!5841!RADAR EQUIPMENT, AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !336411!*!*!3! ! ! !*!*!*!B!*!*!N!
Who is the contractor on this award?
The obligated recipient is BOEING COMPANY, THE.
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 $28.6 million.
What is the period of performance?
Start: 2001-02-14. End: 2006-11-17.
What is the specific type of airborne radar system being procured or sustained under this contract?
The provided data indicates the Product Service Code (PSC) as '5841' for 'RADAR EQUIPMENT, AIRBORNE'. While the specific model or system name is not explicitly detailed in the abbreviated data, this PSC covers a broad range of airborne radar systems, including surveillance, targeting, weather, and electronic warfare radars. Further investigation into the contract's full details or associated documentation would be required to identify the precise system.
How does the per-unit cost of this radar equipment compare to similar systems procured by the DoD?
A direct per-unit cost comparison is not feasible with the provided data. The contract value of $184,173,441 is an aggregate amount covering the entire contract period and scope, which likely includes not just the hardware but also sustainment, support, training, and potentially software development or upgrades. Furthermore, the 'Time and Materials' contract type suggests costs could vary based on actual labor and material usage. To benchmark, one would need to identify specific unit procurements within this contract or comparable contracts and analyze their associated costs against market rates for similar technology.
What are the key performance indicators (KPIs) used to measure the success of this contract?
The provided abbreviated data does not specify the key performance indicators (KPIs) for this contract. Typically, for defense contracts involving complex systems like airborne radar, KPIs would focus on factors such as system availability, reliability (Mean Time Between Failures - MTBF), operational readiness rates, response times for maintenance and repair, and successful completion of mission objectives. These metrics are usually detailed in the contract's Statement of Work (SOW) and are monitored by the government's program office.
What is The Boeing Company's track record with similar sole-source defense contracts?
The Boeing Company has a long and extensive history of securing large, sole-source contracts with the U.S. Department of Defense across various platforms and systems, including aircraft, satellites, and defense electronics. They are a primary contractor for numerous critical military programs. While this indicates a strong capability and established relationship, sole-source awards, in general, warrant scrutiny regarding pricing and competition. Boeing's track record includes both highly successful program deliveries and instances of cost overruns or schedule delays, typical for complex, long-term defense projects.
What is the historical spending trend for airborne radar equipment within the Department of Defense?
Historical spending on airborne radar equipment within the Department of Defense has been substantial and generally increasing, driven by technological advancements and evolving geopolitical landscapes. Major defense contractors consistently receive significant portions of the defense budget for radar systems, encompassing research and development, procurement of new systems, and sustainment of existing fleets. Trends often reflect shifts towards more sophisticated, multi-function radars, networked capabilities, and countermeasure resistance. Analyzing specific budget lines for radar systems over the past decade would reveal detailed spending patterns and major procurement programs.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Parent Company: THE Boeing Company (UEI: 009256819)
Address: 20403 68TH AVE S, KENT, WA, 09
Business Categories: Category Business, Not Designated a Small Business
Timeline
Start Date: 2001-02-14
Current End Date: 2006-11-17
Potential End Date: 2006-11-17 00:00:00
Last Modified: 2008-10-20
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