DoD awards Boeing $157.7M for JDAM Tail Kits, impacting Ammunition Manufacturing sector
Contract Overview
Contract Amount: $157,669,197 ($157.7M)
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: $246.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: ACQUISITION OF JDAM TAIL KITS FOR USAF AND USN.
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $157.7 million to THE BOEING COMPANY for work described as: ACQUISITION OF JDAM TAIL KITS FOR USAF AND USN. Key points: 1. Significant contract value for specialized munitions components. 2. Sole-source award to Boeing raises questions about competition. 3. Potential for cost overruns given fixed-price incentive structure. 4. Impacts the Ammunition (except Small Arms) Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $157.7M for JDAM tail kits appears substantial. Benchmarking against similar munitions component contracts is difficult without more specific data on unit complexity and quantity.
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 potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition in this sole-source award may result in taxpayers paying a premium for these essential munitions components.
Public Impact
Ensures continued supply of critical components for JDAM munitions. Supports a major defense contractor, potentially impacting jobs. Highlights reliance on specific manufacturers for defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Fixed-price incentive contract carries risk of cost overruns.
- Lack of specific unit cost data hinders true value assessment.
Positive Signals
- Addresses a critical need for USAF and USN.
- Long-term contract ensures supply chain stability.
Sector Analysis
This contract falls within the Ammunition (except Small Arms) Manufacturing sector, a critical area for defense readiness. Spending in this sector is often characterized by high R&D costs and specialized production capabilities.
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
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. Robust performance monitoring will be crucial given the incentive-based contract.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Potential for cost overruns (FPI)
- Lack of competition
- Limited transparency on unit costs
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 $157.7 million to THE BOEING COMPANY. ACQUISITION OF JDAM TAIL KITS FOR USAF AND USN.
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 $157.7 million.
What is the period of performance?
Start: 2024-05-29. End: 2026-02-28.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met by other sources. Without further details, it's unclear if alternatives were explored. A thorough review by the contracting officer should confirm the necessity of this approach to ensure taxpayer value is maximized.
How does the fixed-price incentive structure mitigate risks of cost overruns for the government?
A fixed-price incentive (FPI) contract aims to share cost savings or overruns between the government and the contractor based on performance targets. While it incentivizes efficiency, the government still bears a portion of any cost increases above the target price. Effective oversight and clear target setting are crucial to manage this risk.
What is the long-term strategic impact of relying on a single supplier for JDAM tail kits?
Long-term reliance on a single supplier can create vulnerabilities in the supply chain and reduce negotiating leverage. It may also stifle innovation from potential competitors. Diversifying the supplier base or developing alternative technologies could mitigate these risks and ensure greater resilience and cost-effectiveness in the future.
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: 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: $157,669,197
Exercised Options: $157,669,197
Current Obligation: $157,669,197
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $99,365,106
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: 2025-05-13
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