DHS awards $160.5M to Boeing for professional services, raising questions on value and competition
Contract Overview
Contract Amount: $160,542,272 ($160.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Homeland Security
Start Date: 2006-09-21
End Date: 2021-07-31
Contract Duration: 5,427 days
Daily Burn Rate: $29.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: SBI NET
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $160.5 million to THE BOEING COMPANY for work described as: SBI NET Key points: 1. Boeing secured a significant contract valued at $160.5 million. 2. The contract was awarded under full and open competition. 3. Potential risks include cost overruns given the Cost Plus Award Fee structure. 4. The sector is professional, scientific, and technical services, with a specific PSC code of 541990.
Value Assessment
Rating: questionable
The Cost Plus Award Fee (CPAF) contract type can lead to higher costs if not managed tightly. Without specific performance metrics and benchmarks, it's difficult to assess if the $160.5 million represents excellent value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a broad search for qualified bidders. However, the specific impact on price discovery is unclear without knowing the number of bids received and the negotiation process.
Taxpayer Impact: The substantial award amount means taxpayers are funding a significant contract. Effective oversight is crucial to ensure the funds are used efficiently and deliver the intended value.
Public Impact
Taxpayers are funding a large contract for professional services. The contract spans over 15 years, indicating long-term reliance on the service provider. The Department of Homeland Security is the primary agency involved.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can incentivize higher spending.
- Long contract duration (15 years) may lack flexibility for evolving needs.
- Lack of specific performance data makes value assessment difficult.
Positive Signals
- Awarded under full and open competition.
- Significant contract value indicates critical service provision.
Sector Analysis
This contract falls under 'All Other Professional, Scientific, and Technical Services.' Benchmarks for this broad category are difficult to establish without more specific service details, but $160.5 million over 15 years suggests a substantial, ongoing requirement.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. The primary awardee is a large corporation, suggesting limited direct opportunities for small businesses through this specific contract vehicle.
Oversight & Accountability
The contract duration and CPAF structure necessitate robust oversight from DHS to ensure performance standards are met and costs are controlled. Regular reviews and audits would be essential for accountability.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Cost Plus Award Fee (CPAF) structure.
- Long contract duration (over 15 years).
- Broad service category (541990) lacks specificity.
- Limited transparency on performance metrics and award fee criteria.
- Potential for cost creep without stringent oversight.
Tags
all-other-professional-scientific-and-te, department-of-homeland-security, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $160.5 million to THE BOEING COMPANY. SBI NET
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $160.5 million.
What is the period of performance?
Start: 2006-09-21. End: 2021-07-31.
What specific professional, scientific, and technical services are being provided under this contract, and how do they align with DHS's core mission objectives?
The contract is categorized under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). Without further details, it's presumed these services support critical functions within U.S. Customs and Border Protection, potentially including analysis, research, or specialized technical support. Understanding the precise nature of these services is key to evaluating their necessity and effectiveness in achieving agency goals.
How effectively was the Cost Plus Award Fee structure managed to control costs and incentivize performance, given the $160.5 million total award?
The effectiveness of CPAF management is crucial for this contract. While it allows for flexibility and rewards high performance, it also carries the risk of escalating costs if award criteria are not stringent or if oversight is lax. A detailed review of performance metrics, award fee determinations, and actual expenditures would be needed to assess if costs were controlled and performance was genuinely incentivized.
What was the competitive landscape like for this 'full and open' competition, and did it result in the best possible pricing for the government?
While 'full and open' competition suggests a broad solicitation, the ultimate success in achieving optimal pricing depends on the number and quality of bids received, as well as the negotiation process. If only a few highly qualified bidders participated, or if the government's negotiation leverage was limited, the final price might not reflect the most competitive market rate. Analyzing bid data and negotiation outcomes would clarify the price discovery effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 5301 BOLSA AVE, HUNTINGTON BEACH, CA, 92647
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $307,741,667
Exercised Options: $307,741,667
Current Obligation: $160,542,272
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSBP1006D01353
IDV Type: IDC
Timeline
Start Date: 2006-09-21
Current End Date: 2021-07-31
Potential End Date: 2021-07-31 00:00:00
Last Modified: 2021-08-25
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