Boeing awarded $20.9M for advanced space superiority R&D, with a 2,197-day performance period
Contract Overview
Contract Amount: $20,918,415 ($20.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-09-05
End Date: 2025-09-10
Contract Duration: 2,197 days
Daily Burn Rate: $9.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: R&D FOR ADVANCED SPACE SUPERIORITY TECHNOLOGY AND ENGINEERING REQUIREMENTS (RASTER) - MAUI SPACE SURVEILLANCE COMPLEX MODERNIZATION
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87109
Plain-Language Summary
Department of Defense obligated $20.9 million to THE BOEING COMPANY for work described as: R&D FOR ADVANCED SPACE SUPERIORITY TECHNOLOGY AND ENGINEERING REQUIREMENTS (RASTER) - MAUI SPACE SURVEILLANCE COMPLEX MODERNIZATION Key points: 1. Contract focuses on critical R&D for space superiority, aligning with national defense objectives. 2. The long performance period suggests a complex, multi-phase research and development effort. 3. Boeing's extensive experience in aerospace and defense likely positions them favorably for this work. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight. 5. Modernization of the Maui Space Surveillance Complex indicates a focus on enhancing existing capabilities. 6. The specific NAICS code points to a high level of technical and scientific research.
Value Assessment
Rating: good
The contract value of $20.9 million over nearly six years appears reasonable for advanced R&D in a specialized field like space superiority. Benchmarking against similar large-scale R&D contracts for defense systems suggests this is within expected parameters. The Cost Plus Fixed Fee structure, while common for R&D, necessitates diligent monitoring to ensure cost efficiency and prevent overruns. Without specific per-unit deliverables, a direct value-for-money assessment is challenging, but the strategic importance of the research justifies the investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. This competitive process is expected to drive better pricing and innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was sought. This approach generally leads to a more favorable outcome for the government compared to sole-source or limited competition scenarios.
Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to better value and lower costs for advanced research and development.
Public Impact
The primary beneficiaries are the Department of Defense and the U.S. Air Force, gaining advanced capabilities in space superiority. Services delivered include research and development for advanced space superiority technology and engineering requirements. The project is geographically located in New Mexico, potentially impacting the local workforce and economy. This contract supports the development of technologies crucial for national security and defense in the space domain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed meticulously.
- The long duration of the contract (2197 days) requires sustained oversight to ensure progress and adapt to evolving technological landscapes.
- The specialized nature of space superiority R&D may limit the pool of truly competitive bidders in future procurements.
Positive Signals
- Awarded under full and open competition, suggesting a fair and broad solicitation process.
- The contractor, Boeing, is a well-established leader in aerospace and defense, indicating a high likelihood of successful execution.
- The contract addresses a critical national security need, aligning with strategic defense priorities.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced physical, engineering, and life sciences, excluding biotechnology. The market for space superiority technology is highly specialized and dominated by a few large defense contractors. Spending in this area is driven by national security imperatives and the rapid evolution of space-based capabilities by potential adversaries. Comparable spending benchmarks would typically involve other large-scale R&D efforts for advanced defense systems or aerospace technologies.
Small Business Impact
There is no indication that this contract included a small business set-aside. Given the highly specialized and advanced nature of the R&D required for space superiority, it is likely that the prime contractor, Boeing, will subcontract with other specialized firms. The extent to which small businesses will be involved as subcontractors is not specified but is a potential area for future analysis to ensure opportunities within the small business ecosystem.
Oversight & Accountability
Oversight for this Cost Plus Fixed Fee contract will likely involve rigorous monitoring of costs, progress, and performance by the Department of the Air Force contracting officers and technical representatives. Accountability measures are inherent in the contract terms, requiring the contractor to meet specific research and development milestones. Transparency may be limited due to the sensitive nature of space superiority technology, but reporting requirements should be detailed in the contract. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse.
Related Government Programs
- Space Force R&D Programs
- Advanced Aerospace Technology Development
- National Reconnaissance Office Contracts
- Department of Defense Research and Development
Risk Flags
- Long contract duration may increase risk of technological obsolescence.
- Cost Plus Fixed Fee structure requires diligent cost oversight.
- Potential for evolving requirements in a rapidly changing R&D field.
Tags
research-and-development, space-superiority, department-of-defense, air-force, cost-plus-fixed-fee, full-and-open-competition, new-mexico, advanced-technology, aerospace, defense-contractor, long-term-project
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.9 million to THE BOEING COMPANY. R&D FOR ADVANCED SPACE SUPERIORITY TECHNOLOGY AND ENGINEERING REQUIREMENTS (RASTER) - MAUI SPACE SURVEILLANCE COMPLEX MODERNIZATION
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 $20.9 million.
What is the period of performance?
Start: 2019-09-05. End: 2025-09-10.
What is Boeing's track record with similar Cost Plus Fixed Fee R&D contracts for the Department of Defense?
Boeing has a long and extensive history of performing Cost Plus Fixed Fee (CPFF) research and development contracts for the Department of Defense across various platforms and technologies. CPFF contracts are common for R&D where the scope may evolve or specific costs are difficult to predict upfront. Boeing's experience with such contracts typically involves managing complex technical challenges, adhering to evolving requirements, and maintaining cost controls within the fixed fee structure. Their performance on these contracts is generally viewed as strong, given their established position as a major defense contractor, though like any large contractor, specific contract performance can vary. Detailed analysis would require reviewing past performance evaluations and award fee scores on comparable contracts.
How does the $20.9 million value compare to other R&D contracts for space superiority technology?
The $20.9 million contract value for R&D in advanced space superiority technology is moderate for a contract with a nearly six-year performance period. Large-scale R&D programs in cutting-edge defense sectors, particularly those involving space, can range from tens of millions to billions of dollars. This specific award suggests a focused effort on particular technological advancements or modernization of existing complex systems, rather than a broad, multi-system development initiative. Benchmarking against similar, highly specialized R&D efforts would reveal if this represents a cost-effective investment for the defined scope. However, without more granular details on the specific deliverables and the competitive landscape for this niche, a precise value comparison is difficult.
What are the primary risks associated with this contract, given its R&D nature and long duration?
The primary risks associated with this contract stem from its R&D nature and extended duration (2197 days). Technological obsolescence is a significant risk; the technologies being researched today might be outdated by the time the contract concludes, or advancements by adversaries could shift the strategic landscape. Cost overruns are also a risk inherent in Cost Plus Fixed Fee contracts, especially for R&D where unforeseen technical challenges can escalate expenses. Performance risk exists if the contractor, Boeing, encounters insurmountable technical hurdles or fails to meet key development milestones. Furthermore, the long timeline increases the risk of shifting program priorities within the Department of Defense due to changes in geopolitical conditions or budget allocations.
How effective is the Maui Space Surveillance Complex Modernization in enhancing U.S. space superiority?
The modernization of the Maui Space Surveillance Complex (MSSC) is critical for enhancing U.S. space superiority by improving the nation's ability to track, identify, and characterize objects in orbit. The MSSC plays a vital role in space situational awareness (SSA), which is fundamental to protecting U.S. space assets and understanding the activities of other space-faring nations. Modernization efforts typically involve upgrading sensors, data processing capabilities, and command and control systems. These upgrades are essential to keep pace with the increasing number of satellites and space debris, as well as the development of advanced counter-space capabilities by potential adversaries. Therefore, the effectiveness of this modernization directly contributes to maintaining a strategic advantage in the space domain.
What is the historical spending trend for R&D related to space superiority by the Department of the Air Force?
Historical spending by the Department of the Air Force (and now the Space Force) on R&D related to space superiority has been substantial and generally increasing, reflecting the growing strategic importance of space. While specific figures fluctuate annually based on program priorities and budget cycles, there has been a consistent investment in technologies aimed at enhancing space domain awareness, satellite defense, offensive space capabilities, and resilient space architectures. This trend is driven by the recognition of space as a contested domain and the need to maintain a technological edge. The RASTER contract aligns with this broader historical pattern of prioritizing investments in advanced space capabilities to ensure national security.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
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
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $25,428,501
Exercised Options: $25,428,501
Current Obligation: $20,918,415
Actual Outlays: $1,790,543
Subaward Activity
Number of Subawards: 33
Total Subaward Amount: $8,122,585
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA945116D0001
IDV Type: IDC
Timeline
Start Date: 2019-09-05
Current End Date: 2025-09-10
Potential End Date: 2025-09-10 00:00:00
Last Modified: 2025-09-19
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