Boeing Awarded $34.6M for Laser Small Diameter Bomb Follow-On, Lacking Competition
Contract Overview
Contract Amount: $34,613,108 ($34.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2013-06-25
End Date: 2020-01-31
Contract Duration: 2,411 days
Daily Burn Rate: $14.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LASER SMALL DIAMETER BOMB FOLLOW-ON CONTRACT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $34.6 million to THE BOEING COMPANY for work described as: LASER SMALL DIAMETER BOMB FOLLOW-ON CONTRACT Key points: 1. Significant contract value awarded to a single large defense contractor. 2. Lack of competition raises concerns about potential overpricing and reduced innovation. 3. Long contract duration (2411 days) suggests a substantial, ongoing need. 4. The 'MISSOURI' location may indicate specific operational or manufacturing hubs.
Value Assessment
Rating: questionable
The contract value of $34.6 million over approximately 6.7 years is difficult to benchmark without specific per-unit cost data. However, the lack of competition suggests pricing may not have been optimized.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The absence of competition likely results in a higher cost to taxpayers than if the contract had been awarded through a competitive bidding process.
Public Impact
Taxpayers may be paying a premium for advanced munitions due to the lack of competitive bidding. The long-term nature of the contract could lock the Air Force into a specific technology or supplier. Potential for reduced innovation in precision-guided munitions if only one company is incentivized.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Potential for Overpricing
- Long Contract Duration
Positive Signals
- Awarded to a known, established defense contractor
- Firm Fixed Price contract type can provide cost certainty
Sector Analysis
The Department of Defense frequently procures advanced weapon systems. The $34.6 million value for this specific follow-on contract for laser-guided bombs falls within typical spending ranges for such specialized defense equipment.
Small Business Impact
This contract was awarded to The Boeing Company, a large prime contractor. There is no indication that small businesses were involved as subcontractors or prime contractors in this specific award.
Oversight & Accountability
The 'NOT COMPETED' status warrants further review by oversight bodies to ensure the justification for a sole-source award was valid and that the pricing is reasonable given the circumstances.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Potential for inflated costs due to lack of competition.
- Long contract duration may limit flexibility.
- Limited transparency on subcontractor involvement.
Tags
search-detection-navigation-guidance-aer, department-of-defense, mo, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.6 million to THE BOEING COMPANY. LASER SMALL DIAMETER BOMB FOLLOW-ON CONTRACT
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 $34.6 million.
What is the period of performance?
Start: 2013-06-25. End: 2020-01-31.
What was the specific justification for awarding this contract on a sole-source basis, and was it reviewed for necessity?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. A thorough review by the Department of Defense's contracting and oversight offices would be necessary to validate the necessity and ensure taxpayer funds are used responsibly, especially when competition is bypassed.
How does the per-unit cost of these laser-guided bombs compare to similar systems procured competitively?
Without access to specific per-unit cost data and comparable competitive contract awards, a direct comparison is impossible. However, sole-source contracts generally carry a higher risk of inflated pricing due to the absence of competitive pressure, suggesting this contract's per-unit cost may be higher than a competed alternative.
What is the long-term strategic impact of awarding a follow-on contract for a critical munition without competition?
Awarding critical munitions contracts without competition can stifle innovation and reduce strategic flexibility. It may lead to over-reliance on a single supplier, potentially increasing long-term costs and limiting the Air Force's ability to adopt newer, more cost-effective technologies developed by other firms.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134
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: $91,198,167
Exercised Options: $35,963,025
Current Obligation: $34,613,108
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-06-25
Current End Date: 2020-01-31
Potential End Date: 2020-01-31 00:00:00
Last Modified: 2025-04-22
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