DoD Awards $268.5M for JDAM Extended Range Wing Kits to Boeing, Not Competed

Contract Overview

Contract Amount: $268,470,000 ($268.5M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-09-30

Contract Duration: 730 days

Daily Burn Rate: $367.8K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: STOKER 3.0 PROGRAM. A DELIVERY ORDER FOR JOINT DIRECT ATTACK MUNITIONS (JDAM) EXTENDED RANGE WING KITS UNDER CONTRACT FA8213-24-D-B002.

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $268.5 million to THE BOEING COMPANY for work described as: STOKER 3.0 PROGRAM. A DELIVERY ORDER FOR JOINT DIRECT ATTACK MUNITIONS (JDAM) EXTENDED RANGE WING KITS UNDER CONTRACT FA8213-24-D-B002. Key points: 1. Significant award for critical munitions components. 2. Sole awardee, Boeing, raises questions about competition. 3. Long-term contract (2 years) with substantial value. 4. Focus on advanced munitions technology.

Value Assessment

Rating: fair

The contract value of $268.5 million for JDAM extended range wing kits appears substantial. Without direct comparable contracts for this specific advanced component, assessing its pricing against similar items is difficult. Further analysis of unit costs and production efficiency would be needed for a definitive valuation.

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 taxpayers. The justification for a sole-source award needs careful scrutiny.

Taxpayer Impact: The absence of competition in this significant award may result in a higher cost to taxpayers than if multiple vendors had been considered.

Public Impact

Enhances the range and effectiveness of Joint Direct Attack Munitions (JDAMs), crucial for air-to-ground missions. Supports the warfighter with advanced munitions capabilities. Potential impact on the readiness and lethality of Air Force assets. Contributes to the modernization of the U.S. munition stockpile.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Sole-source award justification
  • Potential for cost overruns due to no competition

Positive Signals

  • Awarding advanced munitions technology
  • Supports critical defense capabilities
  • Long-term contract provides supply stability

Sector Analysis

This award falls within the Defense sector, specifically ammunition manufacturing. The $268.5 million value is significant for this sub-sector. Benchmarks for similar advanced munition component contracts are often proprietary and difficult to access, making direct comparison challenging.

Small Business Impact

The data indicates this contract was awarded directly to The Boeing Company and does not mention any subcontracting to small businesses. Further investigation is needed to determine if small business participation was considered or mandated.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. The Department of the Air Force should provide a robust justification for not competing this requirement and ensure accountability for the funds expended.

Related Government Programs

  • Ammunition (except Small Arms) Manufacturing
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Lack of competitive bidding
  • Potential for inflated pricing
  • Limited transparency in cost justification
  • No clear small business participation noted

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 $268.5 million to THE BOEING COMPANY. STOKER 3.0 PROGRAM. A DELIVERY ORDER FOR JOINT DIRECT ATTACK MUNITIONS (JDAM) EXTENDED RANGE WING KITS UNDER CONTRACT FA8213-24-D-B002.

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 $268.5 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-30.

What is the specific technical advantage or unique capability that necessitated a sole-source award for these JDAM wing kits?

The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or essential integration with existing systems that only one vendor can provide. For these JDAM extended range wing kits, it could relate to specific aerodynamic designs, advanced materials, or integration with the JDAM guidance set that Boeing uniquely possesses or has developed under prior contracts.

How does the unit cost of these extended range wing kits compare to standard JDAM kits or similar competitor products, if available?

Without access to detailed cost breakdowns or comparable market data, a precise unit cost comparison is not feasible. However, the 'extended range' and 'advanced' nature of these kits suggest a higher unit cost than standard JDAMs. The lack of competition makes it difficult to ascertain if this higher cost reflects true innovation and production efficiency or inflated pricing due to a lack of market pressure.

What is the projected impact of these extended range wing kits on the operational effectiveness and mission success rates for the platforms utilizing JDAMs?

The extended range capability is designed to significantly increase the standoff distance from which JDAMs can be employed. This enhances platform survivability by allowing aircraft to engage targets from further away, reducing exposure to enemy air defenses. Improved mission success rates are expected due to the ability to prosecute targets that were previously out of reach or required riskier approaches.

Industry Classification

NAICS: ManufacturingOther Fabricated Metal Product ManufacturingAmmunition (except Small Arms) Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $268,470,000

Exercised Options: $268,470,000

Current Obligation: $268,470,000

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $122,435,516

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: 2024-09-30

Current End Date: 2026-09-30

Potential End Date: 2026-09-30 00:00:00

Last Modified: 2025-12-03

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