DoD Awards Boeing $20.5M for Minuteman III Flight Test Telemetry Production
Contract Overview
Contract Amount: $20,465,226 ($20.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-05-02
End Date: 2026-06-30
Contract Duration: 1,520 days
Daily Burn Rate: $13.5K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FLIGHT TEST TELEMETRY AND TERMINATION (FT3) PRODUCTION FOR THE MMIII PROGRAM
Place of Performance
Location: LAYTON, DAVIS County, UTAH, 84041
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $20.5 million to THE BOEING COMPANY for work described as: FLIGHT TEST TELEMETRY AND TERMINATION (FT3) PRODUCTION FOR THE MMIII PROGRAM Key points: 1. Significant contract for critical missile program components. 2. Sole-source award raises questions about competition and pricing. 3. Long-term contract duration (2026) suggests ongoing need. 4. Focus on specialized aerospace manufacturing within the defense sector.
Value Assessment
Rating: questionable
The contract value of $20.5M for a 4-year period needs benchmarking against similar specialized aerospace production contracts. Without competitive bids, assessing value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in inflated costs, impacting taxpayer investment in defense programs.
Public Impact
Ensures continued operational readiness for the Minuteman III missile system. Supports advanced aerospace manufacturing capabilities within the US. Contributes to national security through reliable missile defense infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type can incentivize higher spending.
- Long contract duration may not reflect current market prices.
Positive Signals
- Essential for maintaining strategic defense capabilities.
- Supports a key defense contractor and its workforce.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically for missile components. Benchmarks for similar specialized production contracts are difficult to ascertain due to the unique nature of the equipment.
Small Business Impact
The data indicates no specific set-aside for small businesses in this sole-source award. Boeing, a large prime contractor, is likely performing the majority of the work, with potential for subcontracting opportunities.
Oversight & Accountability
Oversight is crucial for cost-plus fixed-fee contracts, especially sole-source awards, to ensure efficient use of funds and prevent cost overruns. The Department of the Air Force will need robust monitoring.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost-plus contract type can lead to cost overruns.
- Lack of transparency in pricing due to non-competitive nature.
- Potential for contractor to leverage unique position for higher profits.
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.5 million to THE BOEING COMPANY. FLIGHT TEST TELEMETRY AND TERMINATION (FT3) PRODUCTION FOR THE MMIII PROGRAM
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 $20.5 million.
What is the period of performance?
Start: 2022-05-02. End: 2026-06-30.
What is the justification for the sole-source award, and has a market research report been conducted to confirm no other sources can meet the requirement?
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. A thorough market research report is essential to validate these claims and ensure no viable alternatives exist. Without this, the government risks overpaying and missing opportunities for innovation and cost savings.
How are cost efficiencies being ensured under the Cost Plus Fixed Fee (CPFF) contract structure for this specialized production?
CPFF contracts provide cost reimbursement plus a fixed fee. To ensure cost efficiencies, the government must implement rigorous oversight, including detailed cost audits and performance monitoring. Clear performance metrics and incentives for meeting or exceeding targets, alongside penalties for deviations, are crucial. Regular reviews of contractor spending and justification are vital to prevent unnecessary expenditures.
What is the long-term strategy for acquiring telemetry and termination systems, and will future procurements be competed?
The long-term strategy for acquiring such critical systems should prioritize competition to leverage market forces for better pricing and innovation. If this sole-source award is due to unique technology, the government should explore options for developing alternative sources or ensuring technology transfer. Future procurements should aim for competitive bidding processes to maximize value and ensure sustained national security capabilities.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
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: 465 N MARSHALL WAY, LAYTON, UT, 84041
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: $20,465,226
Exercised Options: $20,465,226
Current Obligation: $20,465,226
Subaward Activity
Number of Subawards: 45
Total Subaward Amount: $14,515,146
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA821422D0001
IDV Type: IDC
Timeline
Start Date: 2022-05-02
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-12-15
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