DoD Awards Boeing $8.57M for JDAM Technical Support and Integration
Contract Overview
Contract Amount: $8,570,461 ($8.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-09-30
End Date: 2026-09-29
Contract Duration: 729 days
Daily Burn Rate: $11.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JOINT DIRECT ATTACK MUNITIONS TECHNICAL SUPPORT AND AIRCRAFT/WEAPON SYSTEM INTEGRATION
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $8.6 million to THE BOEING COMPANY for work described as: JOINT DIRECT ATTACK MUNITIONS TECHNICAL SUPPORT AND AIRCRAFT/WEAPON SYSTEM INTEGRATION Key points: 1. Significant contract awarded to a single, established defense contractor. 2. Focus on technical support and integration for critical munitions. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Limited visibility into competitive landscape for this specific support.
Value Assessment
Rating: fair
The contract value of $8.57M for a 2-year period appears reasonable for specialized technical support and integration services. However, without specific benchmarks for JDAM technical support, a definitive value assessment is challenging. The Cost Plus Fixed Fee structure introduces risk.
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. The justification for sole-sourcing is not provided.
Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive bidding, which may result in a less optimal price for the services rendered.
Public Impact
Ensures continued operational readiness of Joint Direct Attack Munitions (JDAMs). Supports critical aircraft and weapon system integration for the Air Force. Maintains specialized technical expertise within a key defense contractor. Potential impact on future munitions development and sustainment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Lack of transparency on the justification for sole-sourcing.
- Potential for vendor lock-in for specialized JDAM support.
Positive Signals
- Ensures continuity of essential technical support for critical munitions.
- Leverages existing expertise of The Boeing Company for JDAM integration.
- Supports Air Force operational readiness and mission effectiveness.
Sector Analysis
This contract falls within the defense sector, specifically focusing on munitions and weapon system integration. Spending benchmarks for technical support and integration services for complex weapon systems can vary widely, but typically involve significant investment to maintain advanced capabilities.
Small Business Impact
This contract was awarded to The Boeing Company and does not indicate any subcontracting opportunities for small businesses. The nature of specialized technical support and integration for advanced munitions often requires specific capabilities that may not be readily available from smaller firms.
Oversight & Accountability
The Department of Defense, specifically the Department of the Air Force, is the awarding agency. Oversight would typically involve contract management personnel ensuring performance and adherence to terms. The lack of competition raises questions about the thoroughness of oversight in ensuring best value.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award.
- Cost Plus Fixed Fee contract.
- Potential for lack of competitive pricing.
- Limited transparency on justification for sole-sourcing.
- Dependency on a single contractor for critical support.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, mo, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.6 million to THE BOEING COMPANY. JOINT DIRECT ATTACK MUNITIONS TECHNICAL SUPPORT AND AIRCRAFT/WEAPON SYSTEM INTEGRATION
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 $8.6 million.
What is the period of performance?
Start: 2024-09-30. End: 2026-09-29.
What is the specific technical expertise that necessitates a sole-source award to Boeing for JDAM technical support and integration?
The justification for a sole-source award typically centers on unique capabilities, proprietary knowledge, or essential integration requirements that only one contractor can fulfill. For JDAMs, Boeing's long-standing role in their development and production likely provides them with unparalleled insight into the system's intricacies, including specific integration challenges with various aircraft platforms and potential upgrades.
How will the Cost Plus Fixed Fee structure be managed to mitigate potential cost overruns and ensure fair pricing for taxpayers?
Effective management of a Cost Plus Fixed Fee (CPFF) contract requires robust oversight from the contracting agency. This includes detailed tracking of incurred costs, regular performance reviews, and strict adherence to the fixed fee. The agency must ensure that Boeing's costs are reasonable and allocable to the contract, and that the fixed fee adequately compensates for the performance risks undertaken, preventing excessive profit.
What is the long-term strategy for JDAM technical support and integration, and will future requirements be subject to competition?
The long-term strategy for JDAM technical support and integration is crucial for maintaining the effectiveness of this vital munition. While this specific award is sole-source, future requirements should ideally be evaluated for competitive potential. Agencies should explore opportunities to break down complex support needs into smaller, more competitive packages or to foster new sources of expertise to ensure sustained competition and innovation.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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: $20,275,900
Exercised Options: $8,570,461
Current Obligation: $8,570,461
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA821324DB007
IDV Type: IDC
Timeline
Start Date: 2024-09-30
Current End Date: 2026-09-29
Potential End Date: 2029-09-29 00:00:00
Last Modified: 2026-01-15
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