Air Force awards $143M for Modular Missile Systems to Boeing, with 5 delivery orders
Contract Overview
Contract Amount: $143,411,958 ($143.4M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-08-21
End Date: 2026-06-24
Contract Duration: 1,038 days
Daily Burn Rate: $138.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: DISRUPTIVE FUTURES MODULAR MISSILE
Place of Performance
Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $143.4 million to THE BOEING COMPANY for work described as: DISRUPTIVE FUTURES MODULAR MISSILE Key points: 1. Boeing secured a significant contract for advanced missile systems. 2. The contract value is substantial, indicating a critical need for these systems. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. The sector is defense, a high-spending area with complex procurement needs.
Value Assessment
Rating: good
The contract value of $143.4M for modular missile systems appears reasonable given the specialized nature of the technology and the prime contractor's expertise. Benchmarking against similar advanced weapon system procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and ensures the government receives the best value. The use of fixed-price incentive contracts aims to balance cost control with contractor performance.
Taxpayer Impact: Taxpayer funds are being allocated to enhance national defense capabilities through advanced missile technology, with competition expected to optimize cost-effectiveness.
Public Impact
Enhances U.S. Air Force's strategic deterrence capabilities. Supports advanced defense manufacturing and technological innovation. Potential for job creation in the aerospace and defense sector. Contributes to national security by modernizing weapon systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Fixed Price Incentive contract type can lead to cost overruns if not managed carefully.
- Long contract duration (over 3 years) increases exposure to market volatility and changing requirements.
- Sole reliance on Boeing may limit future competition if modularity is not standardized.
- Lack of small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Focus on modularity suggests potential for future upgrades and cost savings.
- Contract supports critical defense modernization efforts.
Sector Analysis
This contract falls within the defense sector, specifically focusing on ammunition and missile manufacturing. Defense spending is a significant portion of the federal budget, with advanced weapon systems representing a key area of investment for national security.
Small Business Impact
The data indicates that small businesses were not directly involved in this prime contract award. Efforts to ensure subcontracting opportunities for small businesses will be crucial to broaden the economic impact of this significant defense expenditure.
Oversight & Accountability
The Department of the Air Force is responsible for overseeing this contract. Robust oversight will be necessary to manage the fixed-price incentive structure, ensure timely delivery, and verify performance against contract requirements to safeguard taxpayer funds.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to FPI contract type.
- Long-term sustainment and upgrade costs are not fully detailed.
- Limited visibility into small business subcontracting opportunities.
- Dependence on a single large contractor for a critical system.
- Technological obsolescence risk over the system's lifespan.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $143.4 million to THE BOEING COMPANY. DISRUPTIVE FUTURES MODULAR MISSILE
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 $143.4 million.
What is the period of performance?
Start: 2023-08-21. End: 2026-06-24.
What is the projected lifecycle cost of these modular missile systems, considering potential upgrades and sustainment?
The provided data focuses on the initial procurement value. A comprehensive lifecycle cost analysis would need to incorporate projected sustainment, maintenance, upgrades, and potential obsolescence management over the system's operational lifespan. This analysis is critical for understanding the true long-term investment and ensuring fiscal responsibility beyond the initial acquisition.
How will the modular design be leveraged to ensure interoperability and reduce future development costs?
The modular design aims to allow for easier upgrades, component replacements, and adaptation to new threats without requiring a complete system redesign. This approach is intended to streamline future development, reduce long-term sustainment costs, and enhance the system's relevance over time. Successful implementation depends on standardized interfaces and rigorous testing.
What performance metrics are tied to the incentive portion of the contract, and how are they measured?
The contract utilizes a Fixed Price Incentive (FPI) structure. Specific performance metrics tied to the incentive portion are not detailed in the provided data but typically relate to factors like delivery schedule adherence, system performance specifications (e.g., range, accuracy, reliability), and potentially cost-sharing targets. The Air Force will monitor these metrics closely to ensure contractor performance and manage cost outcomes.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA865823RA003
Offers Received: 5
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JAMES S 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: $143,411,958
Exercised Options: $143,411,958
Current Obligation: $143,411,958
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $8,947,737
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA865621DA041
IDV Type: IDC
Timeline
Start Date: 2023-08-21
Current End Date: 2026-06-24
Potential End Date: 2026-06-24 00:00:00
Last Modified: 2026-01-13
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