DoD Awards Boeing $38M for MMIII Program Flight Test Telemetry Production
Contract Overview
Contract Amount: $38,156,711 ($38.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-11-14
End Date: 2026-06-30
Contract Duration: 959 days
Daily Burn Rate: $39.8K/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 $38.2 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 value for specialized aerospace components. 2. Sole-source award to Boeing raises questions about competition. 3. Long-term contract duration (959 days) suggests ongoing program needs. 4. Focus on critical missile program components highlights national security relevance.
Value Assessment
Rating: fair
The contract value of $38.16M for a 959-day period appears reasonable for specialized production. However, without specific unit cost data or comparable contracts for similar telemetry systems, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, indicating a lack of competitive bidding. This approach may limit price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not benefit from the cost savings typically achieved through competitive procurement processes.
Public Impact
Ensures continued operational capability for the Minuteman III missile system. Supports advanced aerospace manufacturing and specialized technical expertise. Contributes to national defense readiness through critical component supply.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of detailed cost breakdown.
- Long contract duration without clear performance metrics.
Positive Signals
- Supports critical national defense program.
- Utilizes established contractor with relevant expertise.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically for missile components. Spending in this area is driven by national security priorities and technological advancements in defense systems.
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 in the provided data.
Oversight & Accountability
Oversight will be crucial to ensure the cost-plus-fixed-fee structure does not lead to excessive spending and that performance metrics are met within the specified timeframe.
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 contract type.
- Lack of detailed performance metrics.
- Long contract duration.
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 $38.2 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 $38.2 million.
What is the period of performance?
Start: 2023-11-14. End: 2026-06-30.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without further documentation, it's unclear if alternative competitive strategies were explored or deemed infeasible for this specific requirement related to the MMIII program's flight test telemetry.
How does the cost-plus-fixed-fee structure ensure cost control for this specialized production?
A Cost Plus Fixed Fee (CPFF) contract provides the contractor with reimbursement for allowable costs plus a fixed fee representing profit. While the fee is fixed, cost control relies heavily on the contractor's efficiency and the government's robust oversight to scrutinize allowable costs and prevent overruns. The effectiveness depends on detailed cost accounting and vigilant monitoring.
What are the key performance indicators (KPIs) for this contract to ensure effective delivery of telemetry and termination services?
Key performance indicators for this contract would likely include on-time delivery of components, adherence to technical specifications for telemetry data accuracy and reliability, successful integration with the MMIII system, and effective termination procedures. Specific KPIs should be clearly defined in the contract to measure performance and ensure mission success.
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: $38,156,711
Exercised Options: $38,156,711
Current Obligation: $38,156,711
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $34,893,610
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: 2023-11-14
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-12-02
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