DoD Awards Boeing $58.2M for Minuteman III Guidance System Repair
Contract Overview
Contract Amount: $58,222,233 ($58.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2016-09-28
End Date: 2017-09-27
Contract Duration: 364 days
Daily Burn Rate: $160.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: IGF::OT::IGF THE PURPOSE OF THIS ORDER IS TO PROVIDE REPAIR SERVICES FOR THE GUIDANCE SYSTEM OF THE MINUTEMAN III MISSILE.
Place of Performance
Location: HEATH, LICKING County, OHIO, 43056
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $58.2 million to THE BOEING COMPANY for work described as: IGF::OT::IGF THE PURPOSE OF THIS ORDER IS TO PROVIDE REPAIR SERVICES FOR THE GUIDANCE SYSTEM OF THE MINUTEMAN III MISSILE. Key points: 1. Significant contract value for specialized missile system repair. 2. Sole-source award to Boeing raises questions about competition. 3. Potential for cost overruns given the Cost Plus Award Fee structure. 4. Focus on critical defense infrastructure maintenance.
Value Assessment
Rating: questionable
The $58.2 million award for repair services is substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to potential market rates for similar specialized repair services.
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 may result in higher costs for the government.
Taxpayer Impact: The absence of competition for this critical defense repair service means taxpayers may be paying a premium without assurance of the best value.
Public Impact
Ensures the operational readiness of the Minuteman III intercontinental ballistic missile system. Supports national security by maintaining a key component of the nuclear deterrent. Highlights reliance on a single contractor for critical, specialized defense equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Award Fee contract can incentivize cost growth.
- Reliance on a single contractor for critical infrastructure.
Positive Signals
- Maintains critical defense asset.
- Specific expertise likely resides with the incumbent contractor.
Sector Analysis
This contract falls within the defense sector, specifically focusing on the maintenance and repair of strategic missile systems. Spending benchmarks for such highly specialized services are difficult to establish due to their unique nature and limited provider pool.
Small Business Impact
The data indicates this contract was awarded to The Boeing Company, a large defense contractor. There is no information suggesting opportunities for small businesses within this specific delivery order.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair pricing and that competition was appropriately considered or justified.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Cost Plus Award Fee structure
- Critical infrastructure reliance on single vendor
- Lack of transparency on justification for sole-source
Tags
other-electronic-and-precision-equipment, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.2 million to THE BOEING COMPANY. IGF::OT::IGF THE PURPOSE OF THIS ORDER IS TO PROVIDE REPAIR SERVICES FOR THE GUIDANCE SYSTEM OF THE MINUTEMAN III MISSILE.
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 $58.2 million.
What is the period of performance?
Start: 2016-09-28. End: 2017-09-27.
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 where only one source can fulfill the requirement. Oversight should confirm that extensive market research was conducted to ensure no other qualified sources existed and that competition was genuinely not feasible or would compromise national security.
How are award fees determined under this Cost Plus Award Fee contract to ensure alignment with taxpayer value?
Award fees in a Cost Plus Award Fee (CPAF) contract are typically tied to performance metrics, quality, timeliness, and cost control. The contracting officer must establish clear, objective criteria for determining award fees to ensure they incentivize contractor performance that benefits the government and taxpayers, rather than simply covering costs.
What is the long-term strategy for ensuring competitive sourcing for future Minuteman III repair services?
The long-term strategy should involve proactive planning to foster competition. This could include breaking down the requirement into smaller, more accessible components for smaller businesses, investing in training for alternative providers, or developing new government capabilities. Continuous market research is essential to identify and cultivate potential competitors.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 801 IRVING WICK DR W, NEWARK, OH, 43056
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: $58,284,021
Exercised Options: $58,284,021
Current Obligation: $58,222,233
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA821415D0002
IDV Type: IDC
Timeline
Start Date: 2016-09-28
Current End Date: 2017-09-27
Potential End Date: 2019-09-27 00:00:00
Last Modified: 2022-07-05
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