Ussocom Awards Boeing $156.7M for Rdte/Weapons-Demo/Valid Services
Contract Overview
Contract Amount: $214,204,211 ($214.2M)
Contractor: Boeing Company, the
Awarding Agency: Department of Defense
Start Date: 2001-12-11
End Date: 2009-12-31
Contract Duration: 2,942 days
Daily Burn Rate: $72.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: 200312!000145!9700!ZA22 !USSOCOM HQ, DIR. OF PROCUREMENT !USZA2202C0049 !A!N! !Y! !20021211!20061222!156757502!156757502!009256819!N!THE BOEING COMPANY !6633 CANOGA AVE !CANOGA PARK !CA!91309!10788!037!06!CANOGA PARK !LOS ANGELES !CALIFORNIA!+000040000000!N!N!000000000000!AC54!RDTE/WEAPONS-DEMO/VALID !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!R!1!001!N!1G!Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87109
Plain-Language Summary
Department of Defense obligated $214.2 million to BOEING COMPANY, THE for work described as: 200312!000145!9700!ZA22 !USSOCOM HQ, DIR. OF PROCUREMENT !USZA2202C0049 !A!N! !Y! !20021211!20061222!156757502!156757502!009256819!N!THE BOEING COMPANY !6633 CANOGA AVE !CANOGA PARK !CA!91309!10788!037!06!CANOGA PARK !LOS ANGELES !CALIFORNIA!+000040000000!N!N!000000000000!AC54!RD… Key points: 1. Contract awarded to The Boeing Company for Research, Development, Test, and Evaluation. 2. Significant value of $156.7 million over a period of 2942 days. 3. Contract type is Cost Plus Award Fee, indicating performance-based incentives. 4. Procurement was not competed, raising questions about potential cost efficiencies. 5. Sector is R&D, a critical area for defense innovation and technological advancement.
Value Assessment
Rating: questionable
The contract value of $156.7 million for R&D services is substantial. Without comparable contracts or detailed cost breakdowns, it's difficult to assess if this represents excellent value. The Cost Plus Award Fee structure suggests potential for higher costs if performance targets are exceeded.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive bidding process. The rationale for sole-sourcing is not provided.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these R&D services, as there was no market pressure to drive down costs.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The specific nature of the R&D is classified, limiting public understanding of the investment. Long contract duration (2942 days) suggests a significant, ongoing project with potential for cost escalation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Award Fee structure
- Classified R&D details
- Long contract duration
Positive Signals
- Award to established defense contractor
- Focus on critical R&D for defense
Sector Analysis
This contract falls within the Research and Development sector, specifically for weapons demonstration and validation. Spending in this area is crucial for maintaining technological superiority but can be prone to cost overruns and lengthy development cycles.
Small Business Impact
The contract was awarded to The Boeing Company, a large defense contractor. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The contract was awarded by USSOCOM HQ, DIR. OF PROCUREMENT. Oversight is likely managed by the Defense Contract Management Agency. The lack of competition and classified nature of the R&D warrant close scrutiny to ensure accountability and value for money.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Cost Plus Award Fee contract type
- Classified research and development details
- Long contract duration (over 8 years)
- Lack of transparency regarding justification for non-competition
Tags
research-and-development-in-the-physical, department-of-defense, nm, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $214.2 million to BOEING COMPANY, THE. 200312!000145!9700!ZA22 !USSOCOM HQ, DIR. OF PROCUREMENT !USZA2202C0049 !A!N! !Y! !20021211!20061222!156757502!156757502!009256819!N!THE BOEING COMPANY !6633 CANOGA AVE !CANOGA PARK !CA!91309!10788!037!06!CANOGA PARK !LOS ANGELES !CALIFORNIA!+000040000000!N!N!000000000000!AC54!RDTE/WEAPONS-DEMO/VALID !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!R!1!001!N!1G!Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Who is the contractor on this award?
The obligated recipient is BOEING COMPANY, THE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $214.2 million.
What is the period of performance?
Start: 2001-12-11. End: 2009-12-31.
What was the justification for not competing this significant R&D contract, and what steps were taken to ensure fair pricing in the absence of competition?
The justification for not competing this contract is not discernible from the provided data. Typically, sole-source awards require a detailed justification, such as unique capabilities or urgent need. Without this information, it's impossible to assess the fairness of the pricing or the effectiveness of the price discovery process. Further investigation into the contract file is needed.
Given the Cost Plus Award Fee structure and the classified nature of the R&D, what are the primary risks to the government and taxpayers regarding cost control and performance outcomes?
The primary risks include potential cost overruns, as the government pays costs plus an award fee based on performance. The classified nature of the R&D makes it difficult for external parties to assess the true value or necessity of the work, increasing the risk of inefficient spending. Ensuring robust oversight and clear performance metrics is crucial to mitigate these risks.
How does this $156.7 million investment in weapons demonstration and validation align with current USSOCOM strategic objectives, and what are the expected technological advancements?
The provided data does not detail the specific strategic objectives or expected technological advancements tied to this contract. Understanding the alignment requires access to USSOCOM's strategic plans and the classified details of the R&D program. Without this context, it's challenging to evaluate the effectiveness of this investment in meeting national security needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Boeing Company
Address: 8531 FALLBROOK AVE, WEST HILLS, CA, 91304
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2001-12-11
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2022-05-19
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