DoD Awards Boeing $247M for Small Diameter Bomb Production, Lot 15
Contract Overview
Contract Amount: $247,312,140 ($247.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-09-24
End Date: 2024-04-30
Contract Duration: 1,314 days
Daily Burn Rate: $188.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: SMALL DIAMETER BOMB I, AND FOCUSED LETHALITY MUNITION PRODUCTION LOT 15
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $247.3 million to THE BOEING COMPANY for work described as: SMALL DIAMETER BOMB I, AND FOCUSED LETHALITY MUNITION PRODUCTION LOT 15 Key points: 1. Significant contract value for critical munitions. 2. Sole-source award raises questions about competition. 3. Potential for cost overruns due to fixed-price incentive structure. 4. Focus on advanced munition production for Air Force.
Value Assessment
Rating: good
The contract value of $247.3 million for Lot 15 production appears reasonable for advanced munitions. Benchmarking against similar large-scale munition contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning competition was not sought. This limits price discovery and may result in higher costs compared to a competitive process.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price for these munitions.
Public Impact
Ensures continued supply of advanced air-to-ground munitions for U.S. Air Force operations. Supports critical defense capabilities and technological advancement in weaponry. Potential impact on defense industrial base capacity and innovation due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Fixed-price incentive contract may lead to cost overruns if not managed carefully.
- Lack of small business participation noted.
Positive Signals
- Ensures production of essential defense materiel.
- Supports a key defense contractor.
- Long-term contract provides production stability.
Sector Analysis
This contract falls within the defense sector, specifically ammunition manufacturing. Spending in this area is driven by national security needs and technological advancements in weaponry. Benchmarks for similar large-scale munition production contracts are typically in the hundreds of millions of dollars.
Small Business Impact
The data indicates no specific set-aside for small businesses in this contract. This suggests that large prime contractors are likely performing the majority of the work, potentially limiting opportunities for small business participation in this specific award.
Oversight & Accountability
The Department of the Air Force is responsible for oversight of this contract. The sole-source nature warrants close monitoring to ensure fair pricing and efficient execution, especially given the fixed-price incentive structure.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Fixed-price incentive contract
- Lack of small business participation
- Potential for cost overruns
- Limited transparency in price discovery
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, mo, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $247.3 million to THE BOEING COMPANY. SMALL DIAMETER BOMB I, AND FOCUSED LETHALITY MUNITION PRODUCTION LOT 15
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 $247.3 million.
What is the period of performance?
Start: 2020-09-24. End: 2024-04-30.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. The Department of Defense should provide detailed documentation for this decision. To ensure fair pricing, robust negotiation strategies and independent cost analyses are crucial, alongside continuous monitoring of performance and expenditures throughout the contract lifecycle.
What are the potential risks associated with the fixed-price incentive (FPI) contract type for this munition production?
An FPI contract shares cost risks and benefits between the government and the contractor. While it incentivizes cost control, there's a risk that the contractor may not achieve target costs, leading to higher prices for the government. Conversely, if costs are significantly lower than anticipated, the government shares in those savings. Effective oversight is needed to manage the target cost, ceiling price, and incentive sharing.
How does the production of Small Diameter Bomb I and Focused Lethality Munition contribute to current and future Air Force operational effectiveness?
These munitions provide precision strike capabilities against a wide range of targets, enhancing the Air Force's ability to conduct effective missions with reduced collateral damage. Their advanced features are crucial for maintaining air superiority and achieving mission objectives in complex, contested environments, supporting both current operational needs and future warfare concepts.
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
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: $247,312,140
Exercised Options: $247,312,140
Current Obligation: $247,312,140
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA867220D0001
IDV Type: IDC
Timeline
Start Date: 2020-09-24
Current End Date: 2024-04-30
Potential End Date: 2024-04-30 00:00:00
Last Modified: 2025-05-20
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