DHS awards $49M for SBInet Block 1 design and qualification to Boeing under full and open competition
Contract Overview
Contract Amount: $49,038,758 ($49.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Homeland Security
Start Date: 2010-05-28
End Date: 2011-06-30
Contract Duration: 398 days
Daily Burn Rate: $123.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: EFFORT FOR THE DESIGN AND QUALIFICATION ACTIVITIES TO SUCCESSFULLY DEPLOY THE SBINET BLOCK 1 SYSTEM. WORK IS LIMITED TO BLOCK 1 ACTIVITIES ONLY AND THERE IS NO WORK IN THIS TASK ODER FOR DEPLOYMENTS BEYOND THE AJO-1 DEPLOYMENT.
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $49.0 million to THE BOEING COMPANY for work described as: EFFORT FOR THE DESIGN AND QUALIFICATION ACTIVITIES TO SUCCESSFULLY DEPLOY THE SBINET BLOCK 1 SYSTEM. WORK IS LIMITED TO BLOCK 1 ACTIVITIES ONLY AND THERE IS NO WORK IN THIS TASK ODER FOR DEPLOYMENTS BEYOND THE AJO-1 DEPLOYMENT. Key points: 1. Boeing secured a $49M contract for SBInet Block 1 design and qualification. 2. The contract was awarded under full and open competition. 3. The scope is limited to Block 1 activities and AJO-1 deployment. 4. This contract falls under 'All Other Professional, Scientific, and Technical Services'.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee (CPAF), which can lead to higher costs if not managed carefully. Benchmarking CPAF contracts in similar technical services is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing mechanisms of CPAF contracts can obscure true price discovery compared to fixed-price contracts.
Taxpayer Impact: Taxpayer funds are being used for system design and qualification, with potential for cost overruns inherent in CPAF contracts.
Public Impact
Impacts border security technology development through SBInet program. Potential for system performance and deployment delays if design/qualification phases are not managed effectively. The use of CPAF may incentivize contractor performance but also carries cost risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee (CPAF) contract type can lead to cost uncertainty.
- Limited scope to Block 1 and AJO-1 deployment may require future contracts for broader implementation.
- The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, making specific cost benchmarks challenging.
Positive Signals
- Awarded under full and open competition, indicating a competitive process.
- Clear definition of work scope for Block 1 activities.
Sector Analysis
This contract falls within professional, scientific, and technical services, specifically related to IT system development and implementation for border security. Spending benchmarks for such specialized design and qualification efforts can vary widely based on complexity and technology maturity.
Small Business Impact
The contract was awarded to The Boeing Company, a large business. There is no indication of small business participation in this specific award, suggesting limited direct opportunities for small businesses on this particular task order.
Oversight & Accountability
The contract type (CPAF) requires careful oversight to manage award fees and ensure costs align with performance objectives. The limited scope suggests ongoing oversight will be needed for subsequent phases.
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) contract type.
- Broad NAICS code makes specific benchmarking difficult.
- Limited scope may necessitate future, potentially costly, follow-on contracts.
- Potential for scope creep if not strictly managed.
Tags
all-other-professional-scientific-and-te, department-of-homeland-security, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $49.0 million to THE BOEING COMPANY. EFFORT FOR THE DESIGN AND QUALIFICATION ACTIVITIES TO SUCCESSFULLY DEPLOY THE SBINET BLOCK 1 SYSTEM. WORK IS LIMITED TO BLOCK 1 ACTIVITIES ONLY AND THERE IS NO WORK IN THIS TASK ODER FOR DEPLOYMENTS BEYOND THE AJO-1 DEPLOYMENT.
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 $49.0 million.
What is the period of performance?
Start: 2010-05-28. End: 2011-06-30.
What is the expected value realization from the SBInet Block 1 design and qualification activities?
The value realization is tied to the successful design and qualification of the SBInet Block 1 system, which is intended to enhance border security. The effectiveness of this value depends on the system's eventual deployment and operational performance. The CPAF structure aims to link contractor compensation to achieving specific performance goals, theoretically maximizing value if well-executed.
What are the primary risks associated with this contract for taxpayers?
The primary risks for taxpayers include potential cost overruns due to the Cost Plus Award Fee (CPAF) structure, where the final cost is not fixed. There's also a risk that the design and qualification activities may not adequately prepare the system for successful deployment, leading to wasted investment. Furthermore, if the system doesn't perform as expected post-deployment, the initial investment may not yield the intended security benefits.
How effective is the competition method in ensuring optimal pricing for this type of service?
Full and open competition is generally effective in driving competitive pricing. However, the Cost Plus Award Fee (CPAF) contract type introduces complexity. While competition sets the initial baseline, the award fee component requires robust government oversight to ensure that fees are only paid for exceptional performance, preventing inflated costs and ensuring the government receives good value for its investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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: $53,027,838
Exercised Options: $50,412,953
Current Obligation: $49,038,758
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSBP1006D01353
IDV Type: IDC
Timeline
Start Date: 2010-05-28
Current End Date: 2011-06-30
Potential End Date: 2011-06-30 19:17:53
Last Modified: 2021-06-20
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