DHS Awards Boeing $31M for O&M Services Amidst Full and Open Competition

Contract Overview

Contract Amount: $30,989,251 ($31.0M)

Contractor: THE Boeing Company

Awarding Agency: Department of Homeland Security

Start Date: 2011-07-01

End Date: 2013-03-16

Contract Duration: 624 days

Daily Burn Rate: $49.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: OPERATIONS AND MAINTENANCE TASK ORDER

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.0 million to THE BOEING COMPANY for work described as: OPERATIONS AND MAINTENANCE TASK ORDER Key points: 1. Significant contract value of $30.99 million awarded to a major defense contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is for 'All Other Professional, Scientific, and Technical Services,' a broad category. 4. Fixed Price Incentive contract type introduces performance-based cost sharing. 5. The contract duration is substantial at 624 days.

Value Assessment

Rating: good

The contract value of $30.99 million for professional, scientific, and technical services appears reasonable given the duration and the contractor's expertise. Benchmarking against similar large-scale O&M contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates that multiple vendors had the opportunity to bid, which typically drives better pricing and value. The fixed-price incentive structure further encourages cost efficiency from the contractor.

Taxpayer Impact: The competitive bidding process is expected to have yielded a fair price, maximizing taxpayer value for the services rendered.

Public Impact

Ensures continued operational support for critical U.S. Customs and Border Protection functions. Supports national security by maintaining essential systems and infrastructure. The award to a large, established contractor may impact opportunities for smaller, specialized firms. The fixed-price incentive contract type aims to control costs while ensuring performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under professional, scientific, and technical services, a broad category often associated with IT, engineering, and specialized support. Spending in this sector can vary widely, but large O&M contracts like this are common for agencies with complex operational needs.

Small Business Impact

The contract data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the contract was awarded to a large business prime contractor, potentially limiting subcontracting opportunities for small businesses.

Oversight & Accountability

The use of full and open competition and a fixed-price incentive contract type suggests a structured approach to procurement and cost control. Further oversight would focus on performance metrics and adherence to the incentive clauses.

Related Government Programs

Risk Flags

Tags

all-other-professional-scientific-and-te, department-of-homeland-security, va, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.0 million to THE BOEING COMPANY. OPERATIONS AND MAINTENANCE TASK ORDER

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 $31.0 million.

What is the period of performance?

Start: 2011-07-01. End: 2013-03-16.

What specific O&M tasks are covered under 'All Other Professional, Scientific, and Technical Services' for CBP?

The 'All Other Professional, Scientific, and Technical Services' category is broad and can encompass a wide range of activities. For CBP, this could include maintenance of specialized equipment, technical support for IT systems, scientific analysis related to border security, or other professional services not easily classified elsewhere. A detailed review of the PWS (Performance Work Statement) would clarify the exact scope.

How effectively does the Fixed Price Incentive (FPI) structure manage cost overruns given the contract's duration?

The FPI structure aims to incentivize cost savings by sharing any cost underruns between the government and the contractor. However, it also includes a ceiling price. For a 624-day contract, effective management relies on robust baseline cost estimates and diligent monitoring of contractor performance against those estimates. The government's ability to track progress and enforce the incentive clauses is crucial for cost control.

What is the potential impact of awarding such a large contract to a single entity on future competition for similar services?

Awarding a significant contract like this to a single, large entity can sometimes create a barrier to entry for smaller or newer competitors in subsequent procurements. It may also lead to vendor lock-in if the incumbent develops highly specialized knowledge or integrated systems. However, if the initial competition was robust, it suggests the market can support such awards, and future solicitations can be structured to encourage broader participation.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesOther Professional, Scientific, and Technical ServicesAll Other Professional, Scientific, and Technical Services

Product/Service Code: ARCHITECT/ENGINEER SERVICESARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 5301 BOLSA AVE, HUNTINGTON BEACH, CA, 47

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,989,251

Exercised Options: $30,989,251

Current Obligation: $30,989,251

Parent Contract

Parent Award PIID: HSBP1006D01353

IDV Type: IDC

Timeline

Start Date: 2011-07-01

Current End Date: 2013-03-16

Potential End Date: 2013-03-16 00:00:00

Last Modified: 2012-12-20

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