DoD awards $50.4M for Laser Direct Attack Munitions to Boeing, raising questions on competition
Contract Overview
Contract Amount: $50,453,240 ($50.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-05-29
End Date: 2026-02-28
Contract Duration: 640 days
Daily Burn Rate: $78.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ACQUISITION FOR LASER DIRECT ATTACK MUNITIONS (LJDAM)
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $50.5 million to THE BOEING COMPANY for work described as: ACQUISITION FOR LASER DIRECT ATTACK MUNITIONS (LJDAM) Key points: 1. Significant award to a single, large defense contractor. 2. Focus on advanced munitions highlights evolving military technology needs. 3. Lack of competition raises concerns about potential overpricing and limited innovation. 4. The ammunition manufacturing sector is critical for national defense readiness.
Value Assessment
Rating: questionable
The award amount of $50.4M for LJDAM is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar advanced munition contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, The Boeing Company, was considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible price for these advanced munitions.
Public Impact
Enhances Air Force's precision strike capabilities. Supports advanced munition development and production. Potential for increased defense spending in specialized weapon systems.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of bids.
- Limited transparency in cost justification.
Positive Signals
- Addresses critical defense need for advanced munitions.
- Award to established defense contractor ensures production capacity.
Sector Analysis
This contract falls within the defense sector, specifically ammunition manufacturing. Spending in this area is driven by national security needs and technological advancements in weaponry. Benchmarks are difficult without competitive data.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The Department of the Air Force is responsible for monitoring this award and its execution.
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 pricing
- Potential for cost overruns
- Limited transparency
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 $50.5 million to THE BOEING COMPANY. ACQUISITION FOR LASER DIRECT ATTACK MUNITIONS (LJDAM)
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 $50.5 million.
What is the period of performance?
Start: 2024-05-29. End: 2026-02-28.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. The Department of Defense should have documentation supporting this decision. To ensure fair pricing, they may conduct independent cost analyses or rely on historical pricing data, though competitive benchmarking is ideal.
How does the cost of these LJDAMs compare to similar precision-guided munitions acquired through competitive processes?
Without access to specific cost data for comparable competitive contracts, a direct comparison is challenging. However, sole-source awards are generally expected to be higher than competitively bid contracts due to the absence of market pressure. Further analysis would require access to classified or proprietary pricing information.
What is the expected impact of these LJDAMs on the Air Force's operational effectiveness and mission success rates?
Laser Direct Attack Munitions are designed to provide enhanced precision strike capabilities, allowing for greater accuracy against specific targets while minimizing collateral damage. Their integration is expected to improve mission success rates, reduce the need for multiple engagements, and increase the overall effectiveness of air power.
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
Solicitation ID: FA821322R3019
Pricing Type: FIRM FIXED PRICE (J)
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: $50,453,240
Exercised Options: $50,453,240
Current Obligation: $50,453,240
Subaward Activity
Number of Subawards: 17
Total Subaward Amount: $39,625,585
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA821324DB002
IDV Type: IDC
Timeline
Start Date: 2024-05-29
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2025-12-04
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