DHS Awards $133.8M to Boeing for Barry M. Goldwater Range Project Under SBInet
Contract Overview
Contract Amount: $133,846,769 ($133.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Homeland Security
Start Date: 2007-01-12
End Date: 2017-06-23
Contract Duration: 3,815 days
Daily Burn Rate: $35.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: BARRY M. GOLDWATER TEST RANGE (BMGR) PROJECT 37 INITIAL (9 MILE) SECTION UNDER SBINET
Place of Performance
Location: LUKE AFB, MARICOPA County, ARIZONA, 85309
State: Arizona Government Spending
Plain-Language Summary
Department of Homeland Security obligated $133.8 million to THE BOEING COMPANY for work described as: BARRY M. GOLDWATER TEST RANGE (BMGR) PROJECT 37 INITIAL (9 MILE) SECTION UNDER SBINET Key points: 1. Boeing secured a significant contract for IT services related to border security infrastructure. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The project's duration of nearly 10.5 years indicates a long-term commitment to the technology. 4. The Cost Plus Incentive Fee (CPIF) pricing structure aims to incentivize performance and cost control.
Value Assessment
Rating: fair
The $133.8 million award for the BMGR Project 37 is substantial. Benchmarking against similar large-scale IT infrastructure projects for border security is difficult without more specific cost breakdowns, but the duration and scope suggest a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically allows for the widest range of potential bidders and can lead to more competitive pricing. The use of a Delivery Order under a larger contract framework suggests a structured procurement process.
Taxpayer Impact: The significant investment in border security technology aims to enhance national security, but the long-term cost and effectiveness will ultimately determine the taxpayer impact.
Public Impact
Enhances border surveillance and operational capabilities at the Barry M. Goldwater Range. Supports U.S. Customs and Border Protection's mission to secure national borders. Represents a long-term investment in technology infrastructure for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (10.5 years) may lead to cost overruns or technology obsolescence.
- CPIF contract type can be complex to manage and may not always yield the best value if not closely monitored.
- Lack of specific performance metrics in the provided data makes it hard to assess effectiveness.
Positive Signals
- Awarded through full and open competition, indicating potential for competitive pricing.
- Addresses a critical national security need for border protection.
- Long-term commitment suggests a strategic approach to infrastructure development.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically related to IT and security infrastructure. Spending in this area is driven by national security needs and technological advancements in surveillance and data management.
Small Business Impact
The data indicates this contract was awarded to The Boeing Company, a large prime contractor. There is no information provided on subcontracting opportunities for small businesses within this specific award.
Oversight & Accountability
The use of a Delivery Order under a larger contract suggests a framework for oversight. However, the long duration and CPIF structure necessitate robust monitoring by U.S. Customs and Border Protection to ensure accountability and value for money.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Long contract duration increases risk of cost escalation and technological obsolescence.
- CPIF contract type requires diligent oversight to ensure cost control.
- Lack of detailed performance metrics makes assessing effectiveness challenging.
- Potential for vendor lock-in given the long-term nature of the project.
Tags
all-other-professional-scientific-and-te, department-of-homeland-security, az, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $133.8 million to THE BOEING COMPANY. BARRY M. GOLDWATER TEST RANGE (BMGR) PROJECT 37 INITIAL (9 MILE) SECTION UNDER SBINET
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 $133.8 million.
What is the period of performance?
Start: 2007-01-12. End: 2017-06-23.
What specific technological capabilities does Project 37 aim to deliver for the BMGR, and how do these align with current border security threats?
Project 37 likely focuses on enhancing surveillance, data processing, and communication systems at the Barry M. Goldwater Range to improve border security operations. The specific capabilities would need to be detailed in the contract's SOW. Alignment with threats would depend on the evolving nature of border incursions and the technology's adaptability to detect and respond to them effectively.
How will the Cost Plus Incentive Fee (CPIF) structure be managed to ensure cost efficiency and prevent potential overruns over the 10.5-year period?
Effective management of a CPIF contract requires clear establishment of baseline costs, achievable incentive targets, and rigorous performance monitoring. DHS must actively track Boeing's performance against these metrics, ensuring that incentives are tied to demonstrable cost savings or performance improvements. Regular audits and reviews are crucial to prevent scope creep and ensure the government only pays for justified costs and achieved outcomes.
What is the projected return on investment (ROI) for this $133.8 million expenditure in terms of improved border security effectiveness and operational efficiency?
Quantifying the ROI for border security technology is complex, involving metrics like reduced illegal crossings, interdiction rates, and operational cost savings. A formal ROI analysis would likely consider the long-term benefits of enhanced situational awareness and response capabilities against the total lifecycle cost of the system. Without specific performance data and threat assessments, a precise ROI is difficult to determine.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: CONSTRUCTION AND BUILDING MATERIAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $133,846,769
Exercised Options: $133,846,769
Current Obligation: $133,846,769
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSBP1006D01353
IDV Type: IDC
Timeline
Start Date: 2007-01-12
Current End Date: 2017-06-23
Potential End Date: 2017-06-23 00:00:00
Last Modified: 2017-09-19
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