DoD Awards Boeing $44.5M for MMIII Program Flight Test Telemetry Production
Contract Overview
Contract Amount: $44,518,389 ($44.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-11-13
End Date: 2027-02-05
Contract Duration: 814 days
Daily Burn Rate: $54.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
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 $44.5 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 value for specialized aerospace components. 2. Sole-source award to Boeing raises questions about competition. 3. Long-term contract duration (2027) suggests ongoing program needs. 4. Focus on missile program components indicates defense sector importance.
Value Assessment
Rating: fair
The contract value of $44.5M for FT3 production is substantial. Benchmarking against similar specialized aerospace component contracts is difficult without more granular data, but the lack of competition suggests potential for higher pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source to The Boeing Company. This method limits price discovery and competition, potentially leading to less favorable terms for the government compared to a competed award.
Taxpayer Impact: The sole-source nature of this award may result in higher costs for taxpayers due to the absence of competitive bidding.
Public Impact
Ensures continued operational capability for the MMIII missile program. Supports critical defense infrastructure and national security. Potential for limited transparency in pricing due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Critical defense program support
- Established contractor
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 within the provided data.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight will be crucial to ensure performance and cost control, especially given the sole-source nature of the award.
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.
- Potential for higher costs due to lack of bidding.
- Long contract duration may reduce flexibility.
- Dependency on a single contractor for critical components.
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 $44.5 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 $44.5 million.
What is the period of performance?
Start: 2024-11-13. End: 2027-02-05.
What is the justification for the sole-source award to Boeing for this critical missile component production?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Without specific documentation, it's difficult to ascertain the precise reason, but it likely relates to Boeing's established role in the MMIII program and specialized manufacturing expertise.
How does the pricing of this contract compare to similar sole-source awards for defense electronics?
Benchmarking sole-source awards is inherently challenging due to the lack of competitive data. However, the $44.5M value over approximately three years for specialized telemetry production suggests a significant investment. A thorough review of historical sole-source contracts for comparable defense systems would be needed to assess if the pricing is reasonable within that context.
What are the potential risks associated with the long duration and sole-source nature of this contract?
The primary risks include potential cost overruns if efficiencies are not realized, reduced incentive for innovation by the contractor, and a lack of market competition that could drive down prices. Additionally, long-term reliance on a single source can create vulnerabilities if the contractor faces performance issues or supply chain disruptions.
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
Solicitation ID: FA821422R7000
Pricing Type: FIRM FIXED PRICE (J)
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: $44,518,389
Exercised Options: $44,518,389
Current Obligation: $44,518,389
Subaward Activity
Number of Subawards: 17
Total Subaward Amount: $26,190,545
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: 2024-11-13
Current End Date: 2027-02-05
Potential End Date: 2027-02-05 00:00:00
Last Modified: 2025-12-09
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)