DHS awards $12.4M contract for contractor maintenance and logistics support to Boeing
Contract Overview
Contract Amount: $12,389,922 ($12.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Homeland Security
Start Date: 2007-12-07
End Date: 2008-10-31
Contract Duration: 329 days
Daily Burn Rate: $37.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SBI NET, P-28, CONTRACTOR MAINTENANCE AND LOGISTICS SUPPORT (CMLS)
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $12.4 million to THE BOEING COMPANY for work described as: SBI NET, P-28, CONTRACTOR MAINTENANCE AND LOGISTICS SUPPORT (CMLS) Key points: 1. Contract awarded to a large, established aerospace and defense company. 2. The contract value is moderate for the services provided. 3. Potential for cost overruns exists given the Cost Plus Fixed Fee structure. 4. The IT and professional services sector is highly competitive.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure allows for cost reimbursement plus a fixed fee, which can lead to higher costs if not managed tightly. Benchmarking against similar logistics support contracts is difficult without more detailed service breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing strategy and how it was evaluated against other bids are not detailed, impacting the assessment of price discovery.
Taxpayer Impact: Taxpayer funds are used for this contract. The effectiveness of the competition and cost controls will determine the ultimate impact on taxpayers.
Public Impact
Ensures operational readiness for critical Customs and Border Protection assets. Supports essential maintenance and logistics, contributing to national security. Potential impact on the availability of specialized technical services for government agencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Limited transparency on specific performance metrics and cost controls.
- Contract duration is relatively short, potentially leading to frequent re-competition costs.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security functions.
- Contractor has a strong track record in aerospace and defense.
Sector Analysis
This contract falls under professional, scientific, and technical services, often involving specialized expertise. Spending in this sector can vary widely based on agency needs and the complexity of services required.
Small Business Impact
The contract was awarded to a large prime contractor, The Boeing Company. There is no information provided on subcontracting opportunities for small businesses.
Oversight & Accountability
Oversight would typically be managed by the U.S. Customs and Border Protection contracting officer and program managers. Accountability relies on contract performance monitoring and adherence to terms.
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 Fixed Fee structure
- Lack of detailed performance metrics
- Potential for cost escalation
- Limited insight into price discovery effectiveness
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 $12.4 million to THE BOEING COMPANY. SBI NET, P-28, CONTRACTOR MAINTENANCE AND LOGISTICS SUPPORT (CMLS)
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 $12.4 million.
What is the period of performance?
Start: 2007-12-07. End: 2008-10-31.
What specific performance metrics are in place to ensure the value for money in this contract?
The provided data does not detail specific performance metrics. Value for money would typically be assessed through adherence to service level agreements, timely completion of maintenance tasks, and cost control measures within the Cost Plus Fixed Fee framework. Further review of the contract's statement of work and performance work statement is needed.
What are the primary risks associated with the Cost Plus Fixed Fee contract type for this service?
The primary risk with a Cost Plus Fixed Fee contract is that the contractor may have less incentive to control costs, as their profit is fixed regardless of the actual expenses incurred. This can lead to potential cost overruns if robust oversight and cost tracking mechanisms are not diligently applied by the government agency.
How effective is the full and open competition method in ensuring competitive pricing for specialized logistics support?
Full and open competition is generally effective in fostering competitive pricing by allowing all responsible sources to submit offers. However, the effectiveness is contingent on the clarity of the solicitation, the number and quality of bids received, and the government's ability to negotiate favorable terms. For specialized services, the pool of qualified bidders might be limited.
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 FIXED FEE (U)
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: $12,389,922
Exercised Options: $12,389,922
Current Obligation: $12,389,922
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSBP1006D01353
IDV Type: IDC
Timeline
Start Date: 2007-12-07
Current End Date: 2008-10-31
Potential End Date: 2008-10-31 00:00:00
Last Modified: 2021-06-23
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