Boeing Awarded $169M for Ballistic Missile Defense Systems in 1998
Contract Overview
Contract Amount: $1,696,830,730 ($1.7B)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 1998-04-30
End Date: 2001-02-28
Contract Duration: 1,035 days
Daily Burn Rate: $1.6M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 199812!9700!0211!ZD60 !BALLISTIC MISSILE DEFENSE ORG. !HQ000698C0003 !A!*!* !19980430!20010429!169308921!008255523!009256819!N!03953!BOEING NORTH AMERICAN, INC !12214 LAKEWOOD BLVD !DOWNEY !CA!90242!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !0001!+000166500000!N!N!000000000000!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !S1 !SERVICES !1CAA!BALLISTIC MISSILE DEFENSE SYS !8731!3!*!*!*!B!A!*!A !U!R!2!002!B!* !Z!N!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: HUNTINGTON BEACH, ORANGE County, CALIFORNIA, 92647
Plain-Language Summary
Department of Defense obligated $1.70 billion to THE BOEING COMPANY for work described as: 199812!9700!0211!ZD60 !BALLISTIC MISSILE DEFENSE ORG. !HQ000698C0003 !A!*!* !19980430!20010429!169308921!008255523!009256819!N!03953!BOEING NORTH AMERICAN, INC !12214 LAKEWOOD BLVD !DOWNEY !CA!90242!37000!089!01!HUNTSVILLE !MADISO… Key points: 1. Contract awarded to Boeing North American, Inc. for Ballistic Missile Defense Systems. 2. The contract value is $169,308,921 over a period of 1035 days. 3. Awarded under full and open competition, indicating a competitive bidding process. 4. The sector is Defense, specifically R&D/Other Defense-Advanced Tech Development.
Value Assessment
Rating: good
The contract value of $169.3M for ballistic missile defense systems appears reasonable given the scope and duration. Benchmarking against similar large-scale defense R&D contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to sole-source awards.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received fair value for the funds expended on this critical defense technology.
Public Impact
Enhances national security through advanced missile defense capabilities. Supports technological innovation in the defense sector. Creates jobs and economic activity within the aerospace and defense industry. Contributes to the U.S. strategic deterrence posture.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex R&D projects.
- Long-term sustainment costs not detailed in this award.
- Geopolitical shifts could impact the need for this specific technology.
Positive Signals
- Addresses a critical national security need.
- Leverages established contractor expertise.
- Awarded through a competitive process.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on advanced technology development for ballistic missile defense. Spending in this area is crucial for national security and often involves significant R&D investment.
Small Business Impact
While the prime contractor is Boeing North American, Inc., the contract details do not specify subcontracting plans or participation of small businesses in this particular award.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, would oversee this contract. Robust oversight is essential for managing R&D projects and ensuring compliance with contract terms.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Technological obsolescence risk
- Cost growth potential in R&D
- Dependency on specific threat assessments
- Integration challenges with existing systems
Tags
department-of-defense, ca, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.70 billion to THE BOEING COMPANY. 199812!9700!0211!ZD60 !BALLISTIC MISSILE DEFENSE ORG. !HQ000698C0003 !A!*!* !19980430!20010429!169308921!008255523!009256819!N!03953!BOEING NORTH AMERICAN, INC !12214 LAKEWOOD BLVD !DOWNEY !CA!90242!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !0001!+000166500000!N!N!000000000000!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !S1 !SERVICES !1CAA!BALLISTIC MISSILE DEFENSE SYS !8731!3!*!*!*!B!A!*!A !U!R!2!0
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 $1.70 billion.
What is the period of performance?
Start: 1998-04-30. End: 2001-02-28.
What specific technological advancements were achieved under this contract?
The contract aimed to advance ballistic missile defense systems. Specific technological achievements would likely include improvements in detection, tracking, and interception capabilities. Detailed technical reports from the period would be necessary to ascertain the precise innovations and their impact on the overall defense architecture.
What were the key performance metrics and how was performance measured?
Performance metrics for a contract of this nature would typically focus on technical milestones, system reliability, and effectiveness in simulated or actual scenarios. The 'Cost Plus Award Fee' (CPA) structure suggests that contractor performance against predefined criteria would be evaluated, influencing the final award fee.
How did this contract contribute to the broader U.S. missile defense strategy?
This contract likely contributed foundational research and development for subsequent missile defense programs. It would have provided critical components or system integration capabilities necessary for a layered defense approach, enhancing the nation's ability to counter ballistic missile threats.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Address: 12214 LAKEWOOD BLVD, DOWNEY, CA, 90242
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 1998-04-30
Current End Date: 2001-02-28
Potential End Date: 2001-02-28 00:00:00
Last Modified: 2020-05-01
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