DHS awards Boeing $199M for Secure Border Initiative engineering and program execution services
Contract Overview
Contract Amount: $199,229,984 ($199.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Homeland Security
Start Date: 2008-04-16
End Date: 2017-04-21
Contract Duration: 3,292 days
Daily Burn Rate: $60.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: SYSTEMS TASK ORDER (STO) UNDER SECURE BORDER INITIATIVE, PROVIDING SYSTEM-LEVEL ENGINEERING AND PROGRAM EXECUTION SERVICES
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35824
State: Alabama Government Spending
Plain-Language Summary
Department of Homeland Security obligated $199.2 million to THE BOEING COMPANY for work described as: SYSTEMS TASK ORDER (STO) UNDER SECURE BORDER INITIATIVE, PROVIDING SYSTEM-LEVEL ENGINEERING AND PROGRAM EXECUTION SERVICES Key points: 1. The contract supports critical border security technology. 2. Boeing is a major aerospace and defense contractor. 3. Potential risks include scope creep and cost overruns in long-term engineering projects. 4. The sector is professional, scientific, and technical services, with a focus on government contracting.
Value Assessment
Rating: fair
The contract value of $199M over 9 years suggests a significant investment. Benchmarking against similar large-scale engineering and program execution contracts is difficult without more specific service details, but the per-year average is substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the long duration and specific nature of systems engineering can sometimes limit the pool of truly competitive bidders.
Taxpayer Impact: Taxpayer funds are being used for a large-scale, long-term government program. The effectiveness of the services in achieving border security goals will ultimately determine the value for taxpayers.
Public Impact
Enhances border security technology and operational capabilities. Supports national security objectives by improving surveillance and data management. Long-term investment in critical infrastructure and systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (9 years) increases risk of cost escalation and changing requirements.
- Cost-plus award fee contract type can incentivize spending.
- Specific services are broad, potentially leading to scope creep.
Positive Signals
- Awarded under full and open competition.
- Boeing is a reputable contractor with extensive experience.
- Supports a critical national security mission.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically focusing on systems engineering and program execution for a government agency. Spending in this area is often driven by national security and infrastructure needs, with significant government outlays.
Small Business Impact
The contract was awarded to a large prime contractor, The Boeing Company. There is no explicit information provided regarding subcontracting opportunities for small businesses within this data, which is a common area for oversight.
Oversight & Accountability
The contract's long duration and cost-plus award fee structure warrant close oversight to ensure cost control and performance against objectives. Regular reviews by DHS and CBP are 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
- Long-term contract duration increases risk.
- Cost-plus award fee structure can incentivize higher spending.
- Potential for scope creep in complex engineering projects.
- Lack of explicit small business subcontracting data.
- Dependence on a single large prime contractor.
Tags
all-other-professional-scientific-and-te, department-of-homeland-security, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $199.2 million to THE BOEING COMPANY. SYSTEMS TASK ORDER (STO) UNDER SECURE BORDER INITIATIVE, PROVIDING SYSTEM-LEVEL ENGINEERING AND PROGRAM EXECUTION SERVICES
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 $199.2 million.
What is the period of performance?
Start: 2008-04-16. End: 2017-04-21.
What specific metrics were used to determine the award fee for The Boeing Company, and how effectively did these metrics align with the program's objectives?
The provided data does not detail the specific metrics for the award fee. Typically, award fees are tied to performance against defined objectives, such as meeting schedule milestones, quality standards, and cost efficiencies. Effective metrics would directly reflect the success of the Secure Border Initiative's engineering and program execution goals, ensuring taxpayer value.
Given the 9-year duration, what mechanisms were in place to manage evolving technological requirements and potential obsolescence within the Secure Border Initiative?
Long-term engineering contracts require robust change management processes. Mechanisms likely included regular technical reviews, phased development approaches, and contract clauses allowing for adaptation to new technologies. However, without specific contract details, the effectiveness of these mechanisms in preventing obsolescence or managing scope creep remains uncertain.
How did the 'full and open competition' process ensure a competitive landscape for such specialized systems engineering and program execution services?
Full and open competition aims to solicit bids from all responsible sources. For specialized services like systems engineering, the competition's effectiveness depends on the clarity of the solicitation, the number of qualified bidders, and the evaluation criteria. While competition was present, the niche nature of the work might have limited the number of truly competitive proposals.
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
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: $199,229,984
Exercised Options: $199,229,984
Current Obligation: $199,229,984
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSBP1006D01353
IDV Type: IDC
Timeline
Start Date: 2008-04-16
Current End Date: 2017-04-21
Potential End Date: 2017-04-21 00:00:00
Last Modified: 2021-06-25
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