Boeing awarded $43.8M for engineering services, supporting advanced weapons technology development for the Air Force Research Laboratory

Contract Overview

Contract Amount: $43,881,419 ($43.9M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2002-09-23

End Date: 2008-01-31

Contract Duration: 1,956 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200211!002124!5700!GS03 !DET 8, AFRL/PK (SUPPORTS DE) !F2960102C0308 !A!N! !N! !20020923!20070928!965427164!965427164!009256819!N!THE BOEING COMPANY !BLDG 399 !ALBUQUERQUE !NM!87117!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000000022653!N!N!000025537290!AC53!RDTE/WEAPONS-ADV TECH DEV !A1A!AIRFRAMES AND SPARES !3000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!2!002!B! !Z!Y!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! !Y! !FA9451!0001!

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87109

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $43.9 million to THE BOEING COMPANY for work described as: 200211!002124!5700!GS03 !DET 8, AFRL/PK (SUPPORTS DE) !F2960102C0308 !A!N! !N! !20020923!20070928!965427164!965427164!009256819!N!THE BOEING COMPANY !BLDG 399 !ALBUQUERQUE !NM!87117!02000!001!35!ALBUQUERQUE !BERNA… Key points: 1. Contract awarded for advanced weapons technology development, indicating a focus on cutting-edge defense capabilities. 2. The contract's duration of over 5 years suggests a long-term need for these specialized engineering services. 3. Awarded to a single, large prime contractor, raising questions about potential competition limitations. 4. The 'cost plus fixed fee' pricing structure can sometimes lead to cost overruns if not carefully managed. 5. Services are classified under Engineering Services (NAICS 541330), a broad category encompassing complex technical solutions. 6. Geographic location of performance is Albuquerque, New Mexico, a hub for defense research and development.

Value Assessment

Rating: fair

The total award amount of $43.8 million over approximately 5 years for engineering services is difficult to benchmark without more specific details on the scope of work. However, given the specialized nature of advanced weapons technology development, the pricing may reflect the high level of expertise required. The 'cost plus fixed fee' contract type introduces some risk of cost escalation, but the fixed fee component provides a degree of cost control. Further analysis would require understanding the specific deliverables and the complexity of the engineering tasks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. However, the data does not specify the number of bids received. A full and open competition is generally favorable for price discovery, as it allows the government to solicit offers from all responsible sources. The ultimate success in achieving competitive pricing depends on the number and quality of the proposals received.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices through market forces. This process ensures that the government is not limited to a single provider, fostering a more cost-effective acquisition environment.

Public Impact

The primary beneficiary is the U.S. Air Force, specifically the Air Force Research Laboratory (AFRL), which receives advanced engineering support. Services delivered include research, development, and advanced technology development related to weapons systems. Geographic impact is concentrated in Albuquerque, New Mexico, where the contractor's facility is located. Workforce implications include the employment of highly skilled engineers and technical personnel by The Boeing Company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize fee if not properly managed.
Limited information on the number of bidders in the full and open competition makes it difficult to assess the true level of competition.
The long contract duration could lead to scope creep or evolving requirements that may not be fully captured in the initial pricing.

Positive Signals

Awarded through full and open competition, indicating a broad market solicitation.
The contractor, The Boeing Company, is a major defense contractor with a proven track record in aerospace and defense.
The contract supports a critical area of defense research and development (RDTE/WEAPONS-ADV TECH DEV).

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on research, development, testing, and evaluation (RDT&E) for advanced weapons technologies. The market for such specialized engineering services is dominated by large, established defense contractors. Spending in this area is driven by national security priorities and technological advancements. Comparable spending benchmarks would typically be found within other RDT&E contracts for similar advanced technology development programs within the Department of Defense.

Small Business Impact

There is no indication that this contract included a small business set-aside. As a large prime contract awarded to The Boeing Company, it is unlikely to have significant direct subcontracting opportunities specifically targeted at small businesses unless mandated by Boeing's internal policies or specific subcontracting goals. The primary impact on the small business ecosystem would be indirect, through potential competition for specific components or services if Boeing chooses to subcontract.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the contract terms, including performance standards and payment milestones tied to deliverables. Transparency is facilitated through contract awards databases, though detailed performance reports are typically not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Advanced Technology Development Programs
Weapons Systems Research and Development
Air Force Research Laboratory Contracts
Aerospace Engineering Services
Department of Defense RDT&E Spending

Risk Flags

Cost Overrun Risk (CPFF)
Limited Competition Visibility
Long-Term Contractual Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.9 million to THE BOEING COMPANY. 200211!002124!5700!GS03 !DET 8, AFRL/PK (SUPPORTS DE) !F2960102C0308 !A!N! !N! !20020923!20070928!965427164!965427164!009256819!N!THE BOEING COMPANY !BLDG 399 !ALBUQUERQUE !NM!87117!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000000022653!N!N!000025537290!AC53!RDTE/WEAPONS-ADV TECH DEV !A1A!AIRFRAMES AND SPARES !3000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3! ! ! ! ! !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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $43.9 million.

What is the period of performance?

Start: 2002-09-23. End: 2008-01-31.

What is The Boeing Company's track record with similar cost-plus-fixed-fee contracts for advanced technology development within the DoD?

The Boeing Company has a long history of performing on complex, high-value contracts with the Department of Defense, including those utilizing cost-plus-fixed-fee (CPFF) structures. CPFF contracts are common for research and development efforts where the final costs are uncertain. Boeing's extensive experience in aerospace and defense means they have likely managed numerous such contracts across various programs. While specific performance metrics for individual contracts are not always public, their continued selection for significant R&D work suggests a generally satisfactory performance history. However, CPFF contracts inherently carry a risk of cost overruns if not meticulously managed and overseen by the government contracting activity. Analysis of past performance would involve reviewing contract close-out data, any documented overruns or underruns, and any performance evaluations or disputes related to similar contracts.

How does the awarded amount of $43.8 million compare to other contracts for advanced weapons technology development?

Benchmarking the $43.8 million award for advanced weapons technology development requires comparing it to similar contracts in terms of scope, complexity, duration, and the specific technologies involved. Contracts for RDT&E in advanced weapons can vary significantly in value, ranging from a few million dollars for focused research efforts to hundreds of millions or even billions for large-scale system development. Given that this contract supports the Air Force Research Laboratory (AFRL) and involves advanced technology, the amount appears to be within a reasonable range for a multi-year effort with a major defense contractor like Boeing. However, a precise comparison would necessitate identifying contracts with highly similar objectives, such as the development of specific missile technologies, advanced aircraft components, or directed energy weapons, and analyzing their total award values and period of performance.

What are the primary risks associated with the 'Cost Plus Fixed Fee' (CPFF) contract type for this specific project?

The primary risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this advanced weapons technology development project is the potential for cost overruns. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. While the fixed fee provides the contractor with an incentive to control costs (as it doesn't increase with higher costs), there's still a risk that actual costs could significantly exceed initial estimates. If the scope of work is not well-defined or if unforeseen technical challenges arise, the contractor may incur higher costs than anticipated. This could lead to the government potentially paying more than initially budgeted if the contract is modified or if cost ceilings are approached. Effective government oversight, rigorous cost monitoring, and clear definition of work are crucial to mitigate these risks.

What is the significance of the contract being awarded to The Boeing Company in the context of the defense industrial base?

The award of this contract to The Boeing Company signifies the continued reliance of the U.S. Department of Defense on large, established defense prime contractors for critical research, development, and production activities. Boeing is a major player in the aerospace and defense sector, possessing extensive capabilities in systems engineering, advanced manufacturing, and program management necessary for complex projects like advanced weapons technology development. This award reinforces Boeing's position in this segment of the defense industrial base and highlights the consolidation trend, where a few large companies dominate the landscape for major defense programs. It also implies that the government values Boeing's existing infrastructure, expertise, and security clearances for handling sensitive defense projects.

How does this contract align with the Air Force Research Laboratory's (AFRL) mission and strategic objectives?

This contract directly aligns with the Air Force Research Laboratory's (AFRL) core mission, which is to discover, develop, and transition technologies for warfighter superiority. Specifically, the contract's focus on 'RDTE/WEAPONS-ADV TECH DEV' and 'AIRFRAMES AND SPARES' supports AFRL's strategic objectives in advancing next-generation aerospace capabilities and weapon systems. AFRL aims to provide the Air Force with cutting-edge technologies that enhance performance, survivability, and effectiveness. By engaging a contractor like Boeing for advanced engineering services in these areas, AFRL is leveraging external expertise to accelerate innovation and maintain a technological edge in areas critical to national defense. The contract enables the exploration and maturation of potentially game-changing technologies that could shape future air and space power.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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 FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4411 THE 25 WAY, SUITE 350, ALBUQUERQUE, NM, 87109

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline