DoD awards Boeing $27.5M for Small Diameter Bomb I, a focused lethality munition
Contract Overview
Contract Amount: $27,553,168 ($27.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2012-04-17
End Date: 2015-03-31
Contract Duration: 1,078 days
Daily Burn Rate: $25.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SMALL DIAMETER BOMB I - FOCUSED LETHALITY MUNITION
Place of Performance
Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63134, UNITED STATES OF AMERICA
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $27.6 million to THE BOEING COMPANY for work described as: SMALL DIAMETER BOMB I - FOCUSED LETHALITY MUNITION Key points: 1. Boeing is the sole contractor for this specific munition. 2. The contract value is substantial for specialized ordnance. 3. Potential risks include reliance on a single supplier and evolving munition technology. 4. Spending falls within the defense manufacturing sector.
Value Assessment
Rating: fair
The contract value of $27.5M over approximately three years suggests a moderate per-unit cost for advanced munitions. Benchmarking is difficult without specific unit counts or detailed specifications, but it appears within the expected range for specialized defense hardware.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was sole-sourced, indicating a lack of competition. This approach is often used for unique or specialized defense systems where only one entity possesses the necessary technology or manufacturing capability. Price discovery may be limited without competitive bidding.
Taxpayer Impact: Taxpayer funds are directed towards a specific, non-competed defense system, potentially at a higher cost than if competition were present.
Public Impact
Enhances Air Force's precision strike capabilities. Supports ongoing military operations and readiness. Represents investment in advanced munitions technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of public cost breakdown.
- Potential for cost overruns in sole-source contracts.
Positive Signals
- Addresses critical defense need.
- Leverages established contractor expertise.
- Supports advanced weapon system development.
Sector Analysis
This contract falls under the defense manufacturing sector, specifically ammunition. Spending benchmarks for such specialized munitions are highly variable, depending on technological complexity and production volume. The $27.5M award is significant for a single, specialized munition system.
Small Business Impact
There is no indication in the provided data that small businesses were involved as subcontractors or partners in this specific contract award. The prime contractor is a large aerospace and defense company.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution. The Department of the Air Force is responsible for monitoring contract performance and expenditures.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- Limited public cost transparency
- Potential for price escalation
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, mo, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.6 million to THE BOEING COMPANY. SMALL DIAMETER BOMB I - FOCUSED LETHALITY MUNITION
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 $27.6 million.
What is the period of performance?
Start: 2012-04-17. End: 2015-03-31.
What is the specific unit cost for the Small Diameter Bomb I under this contract?
The provided data does not specify the number of units procured or the exact unit cost. The total award is $27.5 million over a duration of approximately 1078 days. Without the quantity, a precise per-unit cost cannot be calculated, making direct value assessment challenging.
What are the risks associated with a sole-source award for critical munitions?
Sole-source awards eliminate competitive pressure, potentially leading to higher prices and reduced innovation. There's also a risk of vendor lock-in and reduced flexibility if the sole provider faces production issues or decides to discontinue the product. This necessitates robust government oversight.
How does this contract contribute to the overall effectiveness of the Air Force's arsenal?
The Small Diameter Bomb I is designed for precision strikes against specific targets, enhancing the Air Force's ability to conduct operations with reduced collateral damage. This contract ensures the continued availability of a key munition, supporting mission effectiveness and strategic objectives.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) 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: $33,733,892
Exercised Options: $27,553,168
Current Obligation: $27,553,168
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2012-04-17
Current End Date: 2015-03-31
Potential End Date: 2015-03-31 00:00:00
Last Modified: 2015-07-13
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