DoD awards Boeing $361M for JDAM SAASM modules and technical services, a sole-source contract
Contract Overview
Contract Amount: $361,354,412 ($361.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2014-10-30
End Date: 2016-10-31
Contract Duration: 732 days
Daily Burn Rate: $493.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JOINT DIRECT ATTACK MUNITIONS (JDAM) SELECTIVE AVAILABILITY ANTI-SPOOFING MODULE (SAASM) ANTI JAM (AJ) AND JDAM SAASM ONLY PURCHASE PLUS TECHNICAL SERVICES SUPPORT.
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $361.4 million to THE BOEING COMPANY for work described as: JOINT DIRECT ATTACK MUNITIONS (JDAM) SELECTIVE AVAILABILITY ANTI-SPOOFING MODULE (SAASM) ANTI JAM (AJ) AND JDAM SAASM ONLY PURCHASE PLUS TECHNICAL SERVICES SUPPORT. Key points: 1. Contract awarded to The Boeing Company for critical JDAM components. 2. Sole-source award raises questions about price discovery and competition. 3. High value suggests significant reliance on this specific technology. 4. Ammunition manufacturing sector, with potential for future related procurements.
Value Assessment
Rating: questionable
The contract value of $361.35 million for JDAM SAASM modules and technical services is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives or previous sole-source awards.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This lack of competition limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive pressure.
Public Impact
Ensures continued availability of advanced guidance systems for munitions. Supports the operational readiness of Air Force platforms. Potential for technological advancements in precision-guided munitions. Impacts the defense industrial base and supply chain for critical components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Limited price transparency
Positive Signals
- Ensures supply of critical defense technology
- Supports existing platform capabilities
Sector Analysis
This procurement falls within the Ammunition (except Small Arms) Manufacturing sector. Spending in this area is driven by defense modernization and operational needs, with sole-source awards often justified for specialized or proprietary technologies.
Small Business Impact
The contract data indicates no specific set-aside for small businesses. As a sole-source award to a large prime contractor, opportunities for small business participation may be limited unless subcontracted.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost overruns. Accountability mechanisms should focus on performance and adherence to contract terms.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competitive pressure.
- Dependency on a single supplier for critical components.
- Limited transparency in price justification.
- Risk of obsolescence if technology is not continuously updated.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, mo, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $361.4 million to THE BOEING COMPANY. JOINT DIRECT ATTACK MUNITIONS (JDAM) SELECTIVE AVAILABILITY ANTI-SPOOFING MODULE (SAASM) ANTI JAM (AJ) AND JDAM SAASM ONLY PURCHASE PLUS TECHNICAL SERVICES SUPPORT.
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $361.4 million.
What is the period of performance?
Start: 2014-10-30. End: 2016-10-31.
What is the justification for the sole-source award, and has a market research report been conducted to confirm the lack of viable alternatives?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of other qualified sources. A thorough market research report should have been conducted by the Department of Defense to validate these claims and explore potential competition before awarding the contract without competition.
How does the per-unit cost of these JDAM SAASM modules compare to similar systems or previous procurements, especially given the lack of competition?
Without competitive bids, establishing a precise per-unit cost benchmark is challenging. The government should have employed robust cost analysis techniques, potentially referencing historical pricing, should-cost models, or independent government cost estimates to validate the reasonableness of the price negotiated with Boeing.
What measures are in place to ensure the effectiveness and reliability of the JDAM SAASM modules and technical services provided under this contract?
Effectiveness and reliability are typically ensured through stringent testing and evaluation protocols, performance metrics outlined in the contract, and quality assurance surveillance. The Department of Defense would monitor contractor performance against these requirements throughout the contract duration.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $390,103,722
Exercised Options: $390,103,722
Current Obligation: $361,354,412
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA821315D0002
IDV Type: IDC
Timeline
Start Date: 2014-10-30
Current End Date: 2016-10-31
Potential End Date: 2016-10-31 00:00:00
Last Modified: 2016-08-05
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