Boeing Awarded $20.7M for Small Diameter Bomb Production, Lot 17 for USAF
Contract Overview
Contract Amount: $20,745,302 ($20.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-11-08
End Date: 2025-06-30
Contract Duration: 1,330 days
Daily Burn Rate: $15.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: SMALL DIAMETER BOMB I PRODUCTION, LOT 17 USAF
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $20.7 million to THE BOEING COMPANY for work described as: SMALL DIAMETER BOMB I PRODUCTION, LOT 17 USAF Key points: 1. Boeing is the sole contractor for this ammunition production lot. 2. The contract is for fixed-price incentive, indicating shared risk between government and contractor. 3. This award falls under the Ammunition (except Small Arms) Manufacturing sector. 4. The duration of 1330 days suggests a significant production run or development phase.
Value Assessment
Rating: fair
The fixed-price incentive structure allows for cost overruns up to a certain point, with shared risk. Without historical data or benchmarks for this specific lot, assessing value is challenging. The award amount of $20.7M needs comparison to similar production runs.
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 limits price discovery and potentially leads to higher costs compared to a competitive environment.
Taxpayer Impact: The lack of competition for this sole-source award may result in taxpayers paying a premium for the Small Diameter Bomb production.
Public Impact
Ensures continued supply of critical munitions for the U.S. Air Force. Supports advanced aerial warfare capabilities through the Small Diameter Bomb. Potential for job creation and economic activity within the defense manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Fixed-price incentive contracts can lead to cost overruns if not managed carefully.
- Lack of specific performance metrics makes value assessment difficult.
Positive Signals
- Addresses a critical defense need for the USAF.
- Award to a known, experienced defense contractor.
- Long-term contract provides production stability.
Sector Analysis
This contract falls within the Ammunition (except Small Arms) Manufacturing sector, a critical component of the defense industrial base. Spending in this sector is driven by military readiness requirements and technological advancements in ordnance.
Small Business Impact
There is no specific indication of small business participation in this award. As a sole-source contract with a large prime contractor, subcontracting opportunities for small businesses may exist but are not detailed here.
Oversight & Accountability
The Department of Defense's contracting oversight mechanisms should be applied to monitor performance, cost, and adherence to contract terms. The fixed-price incentive structure requires careful tracking of cost targets and incentives.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for cost overruns under FPI
- Limited transparency on pricing benchmarks
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.7 million to THE BOEING COMPANY. SMALL DIAMETER BOMB I PRODUCTION, LOT 17 USAF
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 $20.7 million.
What is the period of performance?
Start: 2021-11-08. End: 2025-06-30.
What is the historical cost per unit for similar Small Diameter Bomb production lots, and how does this award compare?
Determining the precise historical cost per unit for comparable Small Diameter Bomb production lots is challenging without access to classified or internal DoD data. However, a general benchmark for complex munitions can range significantly based on quantity, technology, and specific configurations. This $20.7M award, spread over potentially thousands of units, requires detailed cost analysis against prior procurements to ascertain if it represents fair and reasonable pricing, especially given the sole-source nature of this award.
What are the specific risks associated with a sole-source award for critical munitions production, and how are they mitigated?
The primary risk of a sole-source award is the lack of competitive pressure, which can lead to inflated prices and reduced innovation. Mitigation strategies include robust negotiation by the contracting agency, thorough cost analysis, and potentially establishing clear performance metrics and incentives within the contract. For critical munitions, ensuring supply chain resilience and quality control are paramount, even without competition.
How does the fixed-price incentive (FPI) contract structure impact the effectiveness of this award in achieving cost and performance goals?
The FPI structure aims to balance cost control and performance by sharing risks and rewards between the government and contractor. Effectiveness hinges on well-defined target costs, ceiling prices, and share ratios. If targets are realistic and incentives are properly structured, it can drive efficiency. However, poorly set targets or inadequate oversight can lead to cost overruns without commensurate performance gains, diminishing the award's overall effectiveness.
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
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JAMES S 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: $20,745,302
Exercised Options: $20,745,302
Current Obligation: $20,745,302
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA867220D0001
IDV Type: IDC
Timeline
Start Date: 2021-11-08
Current End Date: 2025-06-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-06-10
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