DoD Awards Boeing $200M for Small Diameter Bomb Production Amidst Limited Competition
Contract Overview
Contract Amount: $201,275,000 ($201.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-03-22
End Date: 2026-06-30
Contract Duration: 1,196 days
Daily Burn Rate: $168.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SMALL DIAMETER BOMB I PRODUCTION, GLSDB
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $201.3 million to THE BOEING COMPANY for work described as: SMALL DIAMETER BOMB I PRODUCTION, GLSDB Key points: 1. Significant contract value of $200M awarded to The Boeing Company. 2. Limited competition raises questions about price discovery and potential cost efficiencies. 3. Focus on ammunition production highlights critical defense supply chain needs. 4. The contract spans over three years, indicating a sustained demand for this munition.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not closely managed. Benchmarking against similar ammunition production contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, suggesting potential reliance on a sole provider or a specific capability held by Boeing. This lack of competition may limit opportunities for better pricing and innovation from other manufacturers.
Taxpayer Impact: Taxpayer funds are being used for a significant defense procurement. Without competitive bidding, there's a risk of overpaying for the munitions compared to what could be achieved through a more open process.
Public Impact
Enhances US Air Force's precision strike capabilities. Supports ongoing defense modernization efforts. Potential impact on global defense supply chains and international arms markets. Contributes to the economic activity in Missouri, where the contract is managed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Addresses critical defense need
- Supports established defense contractor
Sector Analysis
This contract falls within the defense sector, specifically ammunition manufacturing. Spending benchmarks for similar large-scale munition production contracts can vary widely based on technology, quantity, and geopolitical factors.
Small Business Impact
The contract data indicates that small business participation was not a stated factor, and the prime contractor is a large corporation. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The Department of the Air Force is the contracting agency. Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure efficient use of funds, especially given the limited competition.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Cost-plus contract type
- Potential for cost overruns
- Dependency on a single supplier
- Limited transparency on pricing justification
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 $201.3 million to THE BOEING COMPANY. SMALL DIAMETER BOMB I PRODUCTION, GLSDB
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 $201.3 million.
What is the period of performance?
Start: 2023-03-22. End: 2026-06-30.
What is the specific justification for not competing this contract, and what measures are in place to ensure fair pricing?
The justification for not competing this contract is not provided in the data. However, typical reasons include urgent need, unique capabilities, or prior development investments. To ensure fair pricing, the Department of Defense often employs cost analysis, audits, and negotiation techniques, even with cost-plus contracts. Regular reviews and performance metrics are also essential for accountability.
How does the unit cost of the Small Diameter Bomb compare to similar munitions, and what is the projected cost over the contract's lifespan?
Without specific unit cost data or benchmarks for comparable munitions, a direct comparison is not possible from the provided information. The total contract value is $200,274,999.86, with a duration of 1196 days. Projecting the lifespan cost requires knowing the quantity of bombs to be produced and the average unit price, which are not detailed here.
What are the potential risks associated with a sole-source or limited-competition award for critical defense equipment like the GLSDB?
The primary risks of limited competition include higher costs due to the absence of market pressure, potential for complacency in quality or innovation from the awarded contractor, and reduced strategic flexibility if the sole source faces production issues or becomes unavailable. It can also limit the development of a broader industrial base for critical components.
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: COST PLUS FIXED FEE (U)
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: $201,275,000
Exercised Options: $201,275,000
Current Obligation: $201,275,000
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: 2023-03-22
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-12-18
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