Air Force Awards Boeing $32.3M for Ammunition Manufacturing Amidst Limited Competition
Contract Overview
Contract Amount: $32,308,332 ($32.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-03-01
End Date: 2027-02-28
Contract Duration: 729 days
Daily Burn Rate: $44.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LOT 13 LJDAM INITIAL DO
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $32.3 million to THE BOEING COMPANY for work described as: LOT 13 LJDAM INITIAL DO Key points: 1. Significant contract value of $32.3 million for ammunition manufacturing. 2. Sole-source award to The Boeing Company raises questions about competition. 3. Potential risk associated with a single supplier for critical defense components. 4. Spending falls within the broader defense sector, specifically ammunition production.
Value Assessment
Rating: fair
Pricing for this delivery order is set at a firm fixed price. Without comparable contract data or a detailed cost breakdown, assessing its value against similar ammunition manufacturing contracts is challenging. Benchmarking is difficult due to the lack of public data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This approach can limit price discovery and potentially lead to higher costs for taxpayers compared to a fully competed procurement.
Taxpayer Impact: The sole-source nature of this award may result in a higher cost to taxpayers than if the contract had been competitively bid, potentially impacting the efficient use of defense funds.
Public Impact
Taxpayers may be paying a premium due to the lack of competition for this ammunition contract. The Department of Defense relies on key contractors like Boeing for essential defense supplies. This award highlights the importance of robust oversight in sole-source procurements to ensure fair pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of transparency in pricing for sole-source contracts.
- Potential for overpayment without competitive bidding.
Positive Signals
- Contract awarded to a major defense contractor with proven capabilities.
- Firm fixed price contract provides cost certainty once awarded.
Sector Analysis
This contract falls under the manufacturing of ammunition, a critical component of the defense sector. Spending in this area is often subject to specific government requirements and can be influenced by geopolitical factors and supply chain stability.
Small Business Impact
This award was made to The Boeing Company, a large prime contractor. There is no indication that small businesses were involved as subcontractors or partners in this specific delivery order, suggesting limited direct impact on the small business sector for this procurement.
Oversight & Accountability
The sole-source nature of this award warrants careful oversight to ensure the price is fair and reasonable. The Department of Defense should have internal mechanisms to validate costs and justify the lack of competition to ensure accountability.
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 bidding
- Potential for inflated pricing
- Limited transparency on cost justification
- Dependency on a single supplier
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 $32.3 million to THE BOEING COMPANY. LOT 13 LJDAM INITIAL DO
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 $32.3 million.
What is the period of performance?
Start: 2025-03-01. End: 2027-02-28.
What is the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves specific circumstances such as the urgency of the need, the unavailability of other sources, or the unique capabilities of the sole provider. Without further documentation, it's difficult to ascertain the precise rationale, but it's crucial for the agency to have documented reasons that align with federal procurement regulations to ensure the award is appropriate.
How does the firm fixed price compare to industry benchmarks for similar ammunition manufacturing services?
Assessing the firm fixed price against industry benchmarks is challenging without access to detailed cost breakdowns or data on comparable contracts. The lack of competition makes direct comparison difficult. A thorough review by the contracting officer should have been conducted to ensure the price was fair and reasonable, but public data to independently verify this is not available.
What is the potential impact on the Air Force's readiness and supply chain if Boeing were unable to fulfill this contract?
The sole-source nature of this award creates a significant dependency on The Boeing Company for this specific ammunition requirement. Any disruption in Boeing's ability to deliver could have a direct and potentially severe impact on the Air Force's operational readiness and overall supply chain resilience for this critical component.
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: 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: $32,308,332
Exercised Options: $32,308,332
Current Obligation: $32,308,332
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $2,467,339
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: 2025-03-01
Current End Date: 2027-02-28
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2025-03-11
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