DoD Awards Boeing $346.7M for Missile Defense Systems Engineering & Integration
Contract Overview
Contract Amount: $346,662,384 ($346.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-12-21
End Date: 2024-05-03
Contract Duration: 1,960 days
Daily Burn Rate: $176.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: SYSTEMS ENGINEERING AND INTEGRATION SERVICES
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35824
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $346.7 million to THE BOEING COMPANY for work described as: SYSTEMS ENGINEERING AND INTEGRATION SERVICES Key points: 1. Significant contract awarded to a major defense contractor, The Boeing Company. 2. Focus on Research and Development in physical and engineering sciences. 3. Contract is a Cost Plus Award Fee type, indicating performance-based incentives. 4. Long duration of 1960 days suggests a complex, multi-year project.
Value Assessment
Rating: fair
The contract type (Cost Plus Award Fee) can lead to higher costs if not managed carefully. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, raising concerns about price discovery and potential for inflated costs. A sole-source award limits opportunities for other qualified contractors to bid.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these critical R&D services.
Public Impact
Supports national security through advanced missile defense technology. Invests in cutting-edge research and development within the defense sector. Potential for technological advancements with broad applications. Long-term commitment to a single contractor for a critical function.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Supports critical defense mission
- Awarded to established contractor
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but requires careful oversight due to its inherent complexity and long-term nature.
Small Business Impact
The contract was awarded to The Boeing Company and does not indicate any specific provisions or subcontracts for small businesses. This suggests limited direct impact on the small business sector.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure cost control and performance. The Missile Defense Agency should actively monitor expenditures and contractor performance against objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost-plus contract type can lead to higher costs if not managed effectively.
- Long contract duration increases risk of cost escalation and scope creep.
- Lack of small business participation noted.
Tags
research-and-development-in-the-physical, department-of-defense, al, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $346.7 million to THE BOEING COMPANY. SYSTEMS ENGINEERING AND INTEGRATION SERVICES
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $346.7 million.
What is the period of performance?
Start: 2018-12-21. End: 2024-05-03.
What specific R&D objectives does this contract aim to achieve, and how will success be measured?
The contract aims to provide systems engineering and integration services for missile defense. Success will likely be measured through milestones related to system design, testing, and integration of various missile defense components. Specific objectives and metrics should be detailed in the contract's statement of work and performance standards.
Given the sole-source award, what mechanisms are in place to ensure cost reasonableness and prevent contractor overruns?
As a Cost Plus Award Fee contract, cost reasonableness is managed through audits and reviews of incurred costs. The 'award fee' component incentivizes performance, but the agency must rigorously monitor expenditures and contractor efficiency to mitigate potential overruns and ensure value for taxpayer money.
How does this contract contribute to the overall effectiveness and technological advancement of the US missile defense system?
This contract is crucial for integrating complex systems and ensuring the cohesive functioning of the missile defense architecture. It supports ongoing R&D efforts, aiming to enhance existing capabilities and develop new technologies to counter evolving threats, thereby directly contributing to 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 Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ014718R0026
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 499 BOEING BLVD SW, HUNTSVILLE, AL, 35824
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: $427,741,141
Exercised Options: $427,741,141
Current Obligation: $346,662,384
Actual Outlays: $19,035,254
Subaward Activity
Number of Subawards: 359
Total Subaward Amount: $169,872,539
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-12-21
Current End Date: 2024-05-03
Potential End Date: 2024-05-03 00:00:00
Last Modified: 2025-09-03
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)