Assessing Companies Eligible For A Government Contract

Recent contract awards

Boeing

Boeing Company has recently been a beneficiary of a major contract that it was awarded by the Army through the Department of defense. The contract that was awarded to Boeing was worth $ 714 million with a responsibility bestowed upon the Boeing to make modifications on twenty six manufactured CH-47F Chinook helicopters (Boeing). Apart from that, the company was also bestowed with the responsibility of making modifications on four new CH-47S helicopters that belong to the military. The contract also gives the company an option of constructing two new CH-47s aircrafts for the military operations. The contract also provided appropriate funding for Boeing for the period during which it will be conducting the exercise. The recent tender that was awarded to Boeing is currently ongoing with its completion date expected to be somewhere around the year 2020.

Space X

Space X Company has been a beneficiary of recent contracts with its first contract being earned in the year 2005 where the company made an announcement that it had been an indefinite contract. The contract was awarded to space X by the United States Air Forces with a sole responsibility of delivering responsive small space lifts. The contract was one that could allow the air force an opportunity to purchase flights that are worth ten million U.S dollars from the space X Company.

Apart from that contract, the company was also awarded a launch service contract by NASA. The contract was supposed to be fulfilled by space x through its delivery f falcon 1 and falcon 2. The total worth of the contract was worth a whooping I billion U.S dollars but it also depended on the number of missions that were going to be awarded to the company. That contract between NASA and space X was supposed to cover the launches that were going to be delivered by space x by the end of June in the year 2013. Additionally, it was supposed to cover the launches that were going to accomplished by the same company by the end of December of 2012. In the year 2008, the company got several contracts beyond its working capabilities. By that time, space x had other contracts that it was working on, so it was forced to sell upto fourteen contracts for flights to other companies (Dinkin, 2006). Most of the contracts that it sold out were majorly on the falcon vehicles.

In the year 2012, the company landed its first ever contract with the department of defense where the air force space and the missile systems space were all involved in the contracts. Space x were awarded the two contracts that were primarily to deliver expandable launch vehicles. The contract also involved the delivery of space climate observatory that was supposed to be launched on the falcon 9 vehicle. Finally, the contract was also inclusive of the space test program that was intended to be launched on the falcon heavy.

In the year 2010, the company made an announcement that it had an intention of launching the middle sized communication satellite using the falcon nine vehicles. The mission that the company had in place eventually materialized on the third day of December 2013. SES 8 was the first contract that space x had been given within the geostationary communications satellite. Another large contract was also awarded to space x in June of the year 2010 where the company was to launch the largest commercial space aircraft. The total worth of the contract was believed to be four hundred and ninety two million dollars. That contract saw the company launch its first Iridium satellite with the help of the falcon 9 rockets.

Based on the analysis that has been provided above, the two companies may be eligible for different types of contracts. To begin with, Boeing being a large company that has been in the game for long might be eligible for costs reimbursement contracts. The reason is because the company has the financial capability of carrying out the contracts from the beginning to the end and getting reimbursement at a later date. In most cases, the company has been manufacturing commercial aircrafts for its international customers where the customers only pay for the crafts after the completion of the manufacturing process.

Space x on the other hand, can be said to be a company that may only be awarded the fixed cost contracts since it has no financial capability of bearing the entire costs of the contract without getting a financial boost. Additionally, from the explanations and examples mentioned above, it can clearly be seen that the company started getting most of its contracts in the recent years. The company therefore still needs several years for it to be able to move into the cost reimbursement category.

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