Boeing Awarded $848M for Missile and Space Systems Engineering and Manufacturing Development
Contract Overview
Contract Amount: $1,748,968,348 ($1.7B)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2002-11-05
End Date: 2014-09-19
Contract Duration: 4,336 days
Daily Burn Rate: $403.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200303!000013!5700!GV44 !ESC/MCK !F1962802C0048 !A!N! !N!P00001 !20021105!20080930!848025649!848025649!009256819!N!THE BOEING COMPANY !3370 E MIRALOMA AVE !ANAHEIM !CA!92806!02000!059!06!ANAHEIM !ORANGE !CALIFORNIA!+000009300000!N!N!000000000000!AC25!RDTE/MISSILE AND SPACE SYSTEMS-ENG/MANUF DEVEL !A1A!AIRFRAMES AND SPARES !3000!NOT DISCERNABLE OR CLASSIFIED !334220!E! !3! ! !C! ! !99990909!B! ! !A! !A!U!R!2!002!B! !Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!D!N! ! ! !Y! ! !0001! !
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
Department of Defense obligated $1.75 billion to THE BOEING COMPANY for work described as: 200303!000013!5700!GV44 !ESC/MCK !F1962802C0048 !A!N! !N!P00001 !20021105!20080930!848025649!848025649!009256819!N!THE BOEING COMPANY !3370 E MIRALOMA AVE !ANAHEIM !CA!92806!02000!059!06!ANAHEIM !ORANG… Key points: 1. Significant contract awarded to The Boeing Company for critical defense systems. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is substantial, indicating a long-term project. 4. The sector is focused on advanced aerospace and defense technologies.
Value Assessment
Rating: good
The total award amount is $848,025,649. While specific per-unit costs are not discernible, the scale of the contract suggests significant investment in R&D and manufacturing for complex systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely led to more favorable pricing than a sole-source procurement.
Public Impact
This contract supports advanced missile and space systems, crucial for national security. The long contract duration implies sustained employment and economic activity within the aerospace sector. Investment in R&D for these systems can lead to technological advancements with broader applications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (over 12 years).
- Contract type is Cost Plus Award Fee, which can incentivize performance but also carries cost risk.
- Specific details on performance metrics and award fee structure are not provided.
Positive Signals
- Awarded under full and open competition.
- Significant investment in critical defense technology.
- The Boeing Company is a major defense contractor with extensive experience.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on missile and space systems. Spending in this area is typically high due to national security requirements and the complexity of the technology involved.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this particular award. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract was awarded by the Department of Defense, which has established oversight mechanisms for major procurements. However, the effectiveness of oversight for this specific contract would depend on detailed reporting and review processes.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration increases exposure to changing requirements and economic conditions.
- Cost Plus Award Fee contracts can lead to cost overruns if not managed tightly.
- Lack of detailed performance metrics in public data hinders assessment of value for money.
- Potential for scope creep given the R&D and manufacturing components.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ca, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.75 billion to THE BOEING COMPANY. 200303!000013!5700!GV44 !ESC/MCK !F1962802C0048 !A!N! !N!P00001 !20021105!20080930!848025649!848025649!009256819!N!THE BOEING COMPANY !3370 E MIRALOMA AVE !ANAHEIM !CA!92806!02000!059!06!ANAHEIM !ORANGE !CALIFORNIA!+000009300000!N!N!000000000000!AC25!RDTE/MISSILE AND SPACE SYSTEMS-ENG/MANUF DEVEL !A1A!AIRFRAMES AND SPARES !3000!NOT DISCERNABLE OR CLASSIFIED !334220!E! !3! ! !C! ! !99990909!B
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 $1.75 billion.
What is the period of performance?
Start: 2002-11-05. End: 2014-09-19.
What is the breakdown of costs for research, development, and manufacturing within this contract?
The provided data does not offer a detailed cost breakdown for research, development, and manufacturing. The contract type is Cost Plus Award Fee, suggesting that costs are reimbursed plus an incentive fee based on performance. Understanding the specific allocation would require access to more granular contract documentation and performance reports.
What are the key performance metrics tied to the award fee structure for this contract?
The specific performance metrics that determine the award fee for this contract are not detailed in the provided data. Cost Plus Award Fee contracts typically link incentives to factors like schedule adherence, technical performance, and cost control. Without access to the contract's statement of work and award fee plan, these metrics remain undisclosed.
How does the technological advancement from this contract potentially benefit other sectors or future defense capabilities?
Advancements in missile and space systems often have dual-use applications, potentially benefiting commercial space exploration, satellite technology, and advanced materials science. Furthermore, the R&D conducted could inform future defense strategies and the development of next-generation aerospace platforms, enhancing overall national security capabilities.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
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: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 3370 E MIRALOMA AVE, ANAHEIM, CA, 92806
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,688,934,005
Exercised Options: $1,880,175,514
Current Obligation: $1,748,968,348
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2002-11-05
Current End Date: 2014-09-19
Potential End Date: 2014-09-19 00:00:00
Last Modified: 2019-07-31
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