Air Force awards $39M+ for Minuteman III missile guidance torque motors, a sole-source contract
Contract Overview
Contract Amount: $39,094,459 ($39.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-03-27
End Date: 2024-12-27
Contract Duration: 2,467 days
Daily Burn Rate: $15.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THE PURPOSE OF THIS ORDER IS TO PURCHASE TORQUE MOTORS WHICH ARE USED IN 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 $39.1 million to THE BOEING COMPANY for work described as: THE PURPOSE OF THIS ORDER IS TO PURCHASE TORQUE MOTORS WHICH ARE USED IN THE GUIDANCE SYSTEM OF THE MINUTEMAN III MISSILE. Key points: 1. Contract focuses on critical components for a strategic missile defense system. 2. Sole-source award raises questions about price competitiveness and potential for cost overruns. 3. Long performance period suggests a sustained need for these specialized components. 4. The contractor, Boeing, has a significant history with defense systems. 5. Repair and maintenance services for electronic equipment are a key sector focus.
Value Assessment
Rating: questionable
The contract's value of over $39 million for torque motors used in missile guidance systems requires careful scrutiny. As a sole-source award, direct price comparisons to similar contracts are difficult. However, the nature of the components suggests high specificity and potential for premium pricing. Benchmarking against industry standards for specialized electronic components and defense-related repair services would be necessary to fully assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning the Department of the Air Force did not conduct a competitive bidding process. This typically occurs when only one vendor possesses the necessary technical expertise, proprietary technology, or when urgency dictates. The lack of competition limits price discovery and may result in higher costs for the government.
Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure, as the contractor faces no direct market alternatives for this specific requirement.
Public Impact
The primary beneficiaries are the U.S. Air Force and national defense, ensuring the operational readiness of the Minuteman III missile system. Services delivered include the provision of specialized torque motors essential for the missile's guidance system. The geographic impact is primarily within the United States, supporting defense infrastructure. Workforce implications include specialized engineering and manufacturing roles within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
- Lack of transparency in the procurement process due to no-bid award.
- Long contract duration could lead to cost creep if not closely managed.
- Reliance on a single contractor for critical missile components poses a supply chain risk.
Positive Signals
- Ensures continued operational capability of a critical national defense asset.
- Leverages the specialized expertise of a known defense contractor (Boeing).
- Provides necessary components for the ongoing maintenance and readiness of the Minuteman III system.
Sector Analysis
This contract falls within the broader defense electronics and aerospace manufacturing sector. The market for specialized missile components is highly concentrated, often dominated by a few large defense contractors with the requisite security clearances and technical capabilities. Spending benchmarks for similar strategic weapon system components are typically high due to the stringent quality, reliability, and security requirements.
Small Business Impact
There is no indication of small business set-asides or subcontracting requirements in the provided data. As a sole-source award to a large prime contractor, the direct impact on small businesses is likely minimal unless the prime contractor voluntarily engages them for specific components or services.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices, with potential involvement from the Air Force's Inspector General. Transparency is limited due to the sole-source nature, but performance metrics and financial reporting would be subject to contract terms and government audit.
Related Government Programs
- Minuteman III Missile System Sustainment
- Strategic Nuclear Deterrence Programs
- Aerospace Component Manufacturing
- Defense Electronics Repair and Maintenance
Risk Flags
- Sole-source procurement
- Critical component for strategic weapon system
- Long contract duration
- Potential for cost overruns due to lack of competition
Tags
defense, department-of-defense, air-force, minuteman-iii, missile-guidance, torque-motors, sole-source, cost-plus-fixed-fee, boeing, ohio, repair-and-maintenance, electronic-equipment
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.1 million to THE BOEING COMPANY. THE PURPOSE OF THIS ORDER IS TO PURCHASE TORQUE MOTORS WHICH ARE USED IN 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 $39.1 million.
What is the period of performance?
Start: 2018-03-27. End: 2024-12-27.
What is the historical spending pattern for torque motors for the Minuteman III missile system with The Boeing Company?
Historical spending data for this specific component is not detailed in the provided information. However, the current contract, awarded in March 2018 and ending in December 2024, represents a significant investment of over $39 million. Given the long service life of the Minuteman III system and the critical nature of its guidance components, it is plausible that similar sole-source or limited-competition contracts have been awarded to Boeing or its predecessors for these parts over the system's operational history. Further analysis would require access to historical contract databases and procurement records specifically for Minuteman III guidance system components.
How does the per-unit cost of these torque motors compare to market rates for similar components?
A direct per-unit cost comparison is not feasible with the provided data. The contract value is a total for an unspecified quantity of torque motors over a multi-year period, and the specific part number or technical specifications are not detailed. Furthermore, as a sole-source award for a critical component within a strategic missile system, the market is highly specialized and likely lacks readily available commercial equivalents for benchmarking. Any comparison would need to be against highly specialized, defense-grade components, which typically command premium pricing due to stringent quality, reliability, and security requirements.
What are the specific risks associated with relying on a sole-source contractor for critical missile guidance components?
The primary risks associated with a sole-source contract for critical missile guidance components include: 1. **Price Escalation:** Without competition, the contractor has significant leverage, potentially leading to higher prices than if multiple bidders were involved. 2. **Supply Chain Vulnerability:** Dependence on a single supplier creates a vulnerability. Any disruption at the contractor's facility (e.g., production issues, financial instability, geopolitical events) could directly impact the operational readiness of the missile system. 3. **Innovation Stagnation:** A lack of competitive pressure may reduce the incentive for the sole-source provider to innovate or improve product design and manufacturing processes. 4. **Limited Oversight Effectiveness:** While oversight mechanisms exist, the absence of competitive alternatives can sometimes reduce the government's leverage in enforcing stringent performance or cost controls.
What is the track record of The Boeing Company in delivering components for strategic defense systems?
The Boeing Company has an extensive and long-standing track record in delivering complex systems and components for strategic defense programs, including numerous U.S. Air Force and Navy platforms. They are a major prime contractor for various strategic weapons systems, including intercontinental ballistic missiles (ICBMs) and strategic bombers. Their experience encompasses design, manufacturing, integration, and sustainment of highly sophisticated aerospace and defense hardware. While their overall track record is substantial, specific performance on individual contracts, including adherence to schedule and budget, can vary and is subject to ongoing government oversight and evaluation.
What is the estimated value of this contract relative to the overall budget for the Minuteman III missile system sustainment?
The provided contract value of approximately $39 million represents a portion of the overall sustainment budget for the Minuteman III missile system. The Minuteman III is a legacy system undergoing modernization efforts, and its sustainment and upgrade programs involve billions of dollars over its extended service life. This specific contract addresses a critical component (torque motors for guidance systems), indicating its importance. However, without access to the total Minuteman III sustainment budget or the specific allocation for guidance system components, it is difficult to precisely quantify this contract's relative value. It is likely a significant but not dominant part of the overall sustainment expenditure.
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: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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: $52,796,734
Exercised Options: $39,114,638
Current Obligation: $39,094,459
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: 2018-03-27
Current End Date: 2024-12-27
Potential End Date: 2024-12-27 00:00:00
Last Modified: 2025-04-14
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