DoD Awards Boeing $13.5M for MMIII Program Flight Test Telemetry Production
Contract Overview
Contract Amount: $13,575,557 ($13.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-05-24
End Date: 2026-09-30
Contract Duration: 1,225 days
Daily Burn Rate: $11.1K/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 $13.6 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 awarded to a major defense contractor, Boeing. 2. Focus on critical flight test telemetry for the MMIII program. 3. Potential for cost overruns due to Cost Plus Fixed Fee contract type. 4. Limited competition raises questions about price discovery and value.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type allows for potential cost growth beyond initial estimates. Benchmarking is difficult without more detailed cost breakdowns, but the award amount appears substantial for production of telemetry and termination systems.
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 may not ensure the best value for taxpayer dollars, as competitive pressure is absent.
Taxpayer Impact: The lack of competition could lead to higher costs than if the contract were awarded through a competitive process, impacting taxpayer investment.
Public Impact
Ensures continued support for critical missile testing and development. Maintains readiness and technological advancement for the MMIII program. Supports a key defense contractor's operations and workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and potential cost savings.
- Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
- Lack of transparency in pricing due to non-competitive nature.
Positive Signals
- Supports a critical national defense program.
- Ensures continued technological development in a sensitive area.
- Leverages established contractor expertise for specialized production.
Sector Analysis
This contract falls within the 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' sector. Spending in this niche area is often characterized by high R&D costs, specialized manufacturing, and significant government oversight due to national security implications.
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, suggesting limited direct impact.
Oversight & Accountability
As a sole-source award for a critical defense program, this contract warrants close oversight to ensure cost control and adherence to contract terms. The Air Force will need to monitor performance and expenditures diligently.
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
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Lack of competitive bidding
- Limited transparency on pricing justification
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 $13.6 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 $13.6 million.
What is the period of performance?
Start: 2023-05-24. End: 2026-09-30.
What is the justification for the sole-source award, and were any attempts made to explore competitive options?
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. Without further details, it's unclear if alternative sources were considered or if specific program requirements necessitated this approach. Further investigation into the contracting officer's justification is needed to assess the necessity and potential impact on value.
How will the Cost Plus Fixed Fee structure be managed to mitigate potential cost overruns and ensure fair pricing?
Managing a Cost Plus Fixed Fee contract requires robust government oversight, including detailed cost audits and performance monitoring. The fixed fee component provides some incentive for the contractor to control costs, but the 'cost plus' element means the government bears the risk of increased expenses. Clear performance metrics and regular reviews are essential to ensure the contractor operates efficiently and taxpayer funds are used appropriately.
What specific deliverables are included in the FT3 production, and how do they contribute to the MMIII program's overall effectiveness?
The FT3 production likely includes the manufacturing of specialized telemetry systems and termination devices crucial for gathering data during flight tests of the MMIII missile. This data is vital for assessing performance, identifying potential issues, and ensuring the system's reliability and effectiveness. Without these components, comprehensive flight testing and subsequent program improvements would be significantly hindered.
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: $13,575,557
Exercised Options: $13,575,557
Current Obligation: $13,575,557
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $3,573,997
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: 2023-05-24
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-12-09
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