DoD awards Boeing $65.5M for Minuteman III Guidance Subsystem Repair, a sole-source contract
Contract Overview
Contract Amount: $65,518,750 ($65.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-09-28
End Date: 2021-09-27
Contract Duration: 364 days
Daily Burn Rate: $180.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: REPAIR THE GUIDANCE SUBSYSTEM 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 $65.5 million to THE BOEING COMPANY for work described as: REPAIR THE GUIDANCE SUBSYSTEM OF THE MINUTEMAN III MISSILE Key points: 1. Significant investment in critical missile defense infrastructure. 2. Sole-source award to Boeing raises questions about competition and potential cost efficiencies. 3. Contract duration of one year for repair services. 4. High value contract for specialized defense maintenance.
Value Assessment
Rating: questionable
The contract value of $65.5M for a one-year repair of a critical subsystem is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar complex electronic repair services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method bypasses the typical price discovery mechanisms inherent in competitive bidding, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The absence of competition in this sole-source award may result in a higher expenditure of taxpayer funds than if the contract had been competitively procured.
Public Impact
Ensures the continued operational readiness of the Minuteman III intercontinental ballistic missile system. Supports national security by maintaining a key component of the nuclear triad. Highlights the reliance on established defense contractors for specialized weapon system maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing.
- High contract value requires careful oversight.
- Potential for cost overruns in Cost Plus Award Fee contracts.
Positive Signals
- Maintains critical defense capability.
- Contract awarded to a known, experienced contractor.
Sector Analysis
This contract falls within the defense sector, specifically focusing on the maintenance and repair of strategic missile systems. Spending in this area is driven by national security imperatives and the lifecycle management of aging weapon platforms.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The Cost Plus Award Fee structure necessitates robust oversight to ensure performance and control costs effectively.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Cost Plus Award Fee contract type
- Critical national security asset
- Aging weapon system
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 $65.5 million to THE BOEING COMPANY. REPAIR THE GUIDANCE SUBSYSTEM 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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $65.5 million.
What is the period of performance?
Start: 2020-09-28. End: 2021-09-27.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The contracting agency should have conducted a price analysis based on historical data, independent government cost estimates, or other available benchmarks to ensure the price was fair and reasonable, despite the lack of competition.
What are the specific performance metrics and award fee criteria for this contract, and how are they monitored?
Performance metrics and award fee criteria are crucial for Cost Plus Award Fee contracts. They should be clearly defined in the contract, focusing on aspects like timeliness, quality of repair, and adherence to technical specifications. The Defense Contract Management Agency would monitor contractor performance against these metrics and determine the award fee based on the contractor's achievements.
What is the long-term strategy for the Minuteman III guidance subsystem, and how does this repair contract align with it?
This repair contract addresses the immediate need to maintain the operational status of the Minuteman III guidance subsystem. The long-term strategy likely involves either continued sustainment of the existing fleet or eventual replacement. Understanding this broader strategy is essential to evaluate if this significant investment is a stop-gap measure or part of a sustainable plan.
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: $118,523,102
Exercised Options: $118,523,102
Current Obligation: $65,518,750
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: 2020-09-28
Current End Date: 2021-09-27
Potential End Date: 2021-09-27 00:00:00
Last Modified: 2025-10-15
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