DoD Awards Boeing $76M for Minuteman III Guidance Subsystem Repair Through 2039
Contract Overview
Contract Amount: $76,112,360 ($76.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-09-28
End Date: 2039-09-27
Contract Duration: 6,573 days
Daily Burn Rate: $11.6K/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 $76.1 million to THE BOEING COMPANY for work described as: REPAIR THE GUIDANCE SUBSYSTEM OF THE MINUTEMAN III MISSILE Key points: 1. Significant long-term contract for critical missile component maintenance. 2. Sole-source award to Boeing raises questions about competition and pricing. 3. High value suggests substantial repair needs for aging missile systems. 4. Focus on sustainment rather than new development.
Value Assessment
Rating: questionable
The contract's Cost Plus Award Fee structure can lead to higher costs if not managed tightly. Benchmarking is difficult without comparable sole-source repair contracts for similar complex systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This is a sole-source award, meaning competition was not sought. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this critical repair contract may result in higher taxpayer expenditure than necessary.
Public Impact
Ensures continued operational readiness of the Minuteman III intercontinental ballistic missile (ICBM) force. Supports national security by maintaining a key component of the nuclear triad. Long contract duration provides stability for the contractor and the DoD. Potential for cost overruns due to sole-source and cost-plus award fee structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Award Fee structure can inflate costs.
- Long contract duration increases risk of cost escalation.
- Aging missile system may have unforeseen repair complexities.
Positive Signals
- Ensures critical system sustainment.
- Long-term stability for a key defense contractor.
- Supports national security objectives.
Sector Analysis
This contract falls under the defense sector, specifically missile system maintenance. Spending on sustainment for aging strategic assets like the Minuteman III is substantial and ongoing.
Small Business Impact
No information is available regarding small business participation in this contract. Sole-source awards often limit opportunities for small businesses.
Oversight & Accountability
The Cost Plus Award Fee structure requires robust oversight to ensure performance targets are met and costs are controlled. The long duration necessitates continuous monitoring by the Department of the Air Force.
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
- Long contract duration (18 years)
- Aging weapon system sustainment
- Potential for cost escalation
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 $76.1 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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $76.1 million.
What is the period of performance?
Start: 2021-09-28. End: 2039-09-27.
What is the justification for the sole-source award, and were alternatives considered?
The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or urgent need where only one source can fulfill the requirement. For the Minuteman III guidance subsystem, it's likely that Boeing possesses unique knowledge and technical data essential for its repair. However, a thorough review should confirm that no other qualified sources exist or could be developed within a reasonable timeframe to ensure fair pricing.
How are cost overruns mitigated with a Cost Plus Award Fee contract for such a critical system?
Mitigating cost overruns in a Cost Plus Award Fee (CPAF) contract involves clearly defined performance metrics and award fee criteria tied to cost control, schedule adherence, and technical quality. The Air Force must diligently monitor expenditures, conduct regular audits, and ensure that award fees are only granted when contractor performance demonstrably meets or exceeds expectations, including efficient resource utilization.
What is the long-term strategy for Minuteman III sustainment beyond this contract's end date?
This contract extends to 2039, nearing the planned retirement of the Minuteman III system. The long-term strategy likely involves transitioning to the Ground-Based Strategic Deterrent (GBSD) program. However, significant sustainment funding is still required for the remaining lifespan of the Minuteman III, making efficient management of this contract crucial until the GBSD is fully operational.
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, HEATH, 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: $123,359,584
Exercised Options: $123,359,584
Current Obligation: $76,112,360
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA821421D0003
IDV Type: IDC
Timeline
Start Date: 2021-09-28
Current End Date: 2039-09-27
Potential End Date: 2040-09-27 00:00:00
Last Modified: 2025-11-07
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