DoD Awards Boeing $54.3M for Small Diameter Bomb Sustainment, Sole-Source Contract
Contract Overview
Contract Amount: $54,293,423 ($54.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2018-08-06
End Date: 2025-08-29
Contract Duration: 2,580 days
Daily Burn Rate: $21.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTRACTOR LOGISTICAL SUSTAINMENT SUPPORT FOR SMALL DIAMETER BOMB-I WEAPON SYSTEM
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $54.3 million to THE BOEING COMPANY for work described as: CONTRACTOR LOGISTICAL SUSTAINMENT SUPPORT FOR SMALL DIAMETER BOMB-I WEAPON SYSTEM Key points: 1. Significant contract value for weapon system sustainment. 2. Sole-source award raises questions about competition and pricing. 3. Long contract duration (7 years) impacts long-term value assessment. 4. Focus on technical services within the defense sector.
Value Assessment
Rating: questionable
The contract value of $54.3 million over seven years for sustainment services is substantial. Without competitive bidding, it's difficult to benchmark against similar contracts to determine optimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for sustainment services.
Public Impact
Ensures continued operational readiness of the Small Diameter Bomb-I weapon system. Supports critical defense capabilities for the U.S. Air Force. Potential for increased costs due to sole-source nature. Long-term commitment to a single contractor for essential services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Ensures system availability
- Supports critical defense needs
Sector Analysis
This contract falls within the defense sector, specifically for technical services related to weapon systems. Spending benchmarks for sustainment contracts can vary widely based on system complexity and age.
Small Business Impact
The data indicates that small business participation (sb) is false for this contract, meaning small businesses are not directly involved as prime contractors. Further analysis would be needed to determine if they are involved as subcontractors.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure fair pricing and prevent potential cost overruns. Accountability for performance and cost management is crucial given the extended duration.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Long contract duration may reduce flexibility.
- No indication of small business prime participation.
Tags
all-other-professional-scientific-and-te, department-of-defense, mo, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.3 million to THE BOEING COMPANY. CONTRACTOR LOGISTICAL SUSTAINMENT SUPPORT FOR SMALL DIAMETER BOMB-I WEAPON SYSTEM
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 $54.3 million.
What is the period of performance?
Start: 2018-08-06. End: 2025-08-29.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Agencies must conduct market research and document why competition is not feasible. Fair and reasonable pricing is usually determined through cost analysis, historical pricing, or comparison to similar commercial items, though this is more challenging without competitive bids.
How does the long contract duration impact the government's flexibility and potential for cost savings?
A long contract duration, like this seven-year award, provides stability for sustainment but reduces the government's flexibility to adapt to new technologies or seek better pricing through future competition. While it can offer some cost predictability, it also risks locking the government into potentially suboptimal pricing if market conditions or needs change significantly.
What are the key performance indicators (KPIs) for this sustainment contract, and how are they being monitored?
Key performance indicators for sustainment contracts typically include system availability rates, response times for maintenance, parts availability, and adherence to maintenance schedules. Monitoring these KPIs is crucial for ensuring the weapon system remains operational and that the contractor is meeting its obligations effectively and efficiently.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
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: $73,149,498
Exercised Options: $54,293,423
Current Obligation: $54,293,423
Actual Outlays: $16,047
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2018-08-06
Current End Date: 2025-08-29
Potential End Date: 2025-08-29 00:00:00
Last Modified: 2025-08-19
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