DoD awards $62.2M for Small Diameter Bomb I (SDB I) to Boeing, facing limited competition
Contract Overview
Contract Amount: $62,245,813 ($62.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-06-01
End Date: 2027-12-31
Contract Duration: 2,404 days
Daily Burn Rate: $25.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SMALL DIAMETER BOMB I (SDB I)
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $62.2 million to THE BOEING COMPANY for work described as: SMALL DIAMETER BOMB I (SDB I) Key points: 1. Significant contract value for specialized munitions. 2. Boeing is the sole provider, raising competition concerns. 3. Potential for cost overruns with Cost Plus Fixed Fee contract type. 4. Ammunition manufacturing sector with critical defense applications.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to higher costs than fixed-price contracts if not managed closely. Benchmarking is difficult without more detailed cost breakdowns.
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 lack of competition limits price discovery and may result in higher costs for the government.
Taxpayer Impact: Taxpayer funds are being spent without competitive bidding, potentially leading to a less efficient use of resources.
Public Impact
Ensures continued supply of critical SDB I munitions for the Air Force. Supports advanced aerial warfare capabilities. Potential impact on future defense procurement strategies if sole-source awards become standard.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type.
- Lack of small business participation.
Positive Signals
- Ensures availability of critical defense asset.
- Long-term contract provides stability for production.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically ammunition. Spending benchmarks for such specialized munitions are often proprietary, but significant investment indicates high strategic importance.
Small Business Impact
The data indicates no specific small business set-aside or participation. This sole-source award to a large prime contractor may limit opportunities for small businesses in the supply chain.
Oversight & Accountability
Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure the government receives fair value. The Department of the Air Force is responsible for contract administration.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- No small business participation identified
- Potential for cost creep
- Limited transparency on unit pricing
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.2 million to THE BOEING COMPANY. SMALL DIAMETER BOMB I (SDB I)
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 $62.2 million.
What is the period of performance?
Start: 2021-06-01. End: 2027-12-31.
What is the projected unit cost for the Small Diameter Bomb I under this contract, and how does it compare to historical or alternative munitions?
The provided data does not specify the unit cost for the Small Diameter Bomb I. Determining this would require a detailed cost analysis of the contract, including the fixed fee and estimated costs. Benchmarking against similar munitions or previous SDB I procurements would be necessary to assess value for money.
What are the specific risks associated with a sole-source award for critical munitions like the SDB I, particularly regarding long-term sustainment and technological advancement?
Sole-source awards for critical munitions pose risks such as inflated pricing due to lack of competition, potential for vendor lock-in, and reduced incentive for innovation. Long-term sustainment could become dependent on a single supplier's pricing and availability, while technological advancements might be slower without competitive pressure to develop superior alternatives.
How effective is the Cost Plus Fixed Fee contract structure in ensuring the efficient delivery of SDB I munitions, and what oversight mechanisms are in place?
The Cost Plus Fixed Fee structure aims to incentivize the contractor to control costs while ensuring delivery, but it carries inherent risks of cost overruns. Effectiveness hinges on robust government oversight, including detailed cost audits and performance monitoring, to ensure the fixed fee remains reasonable and the total contract cost stays within acceptable limits.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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: $63,554,720
Exercised Options: $63,554,720
Current Obligation: $62,245,813
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $26,987,608
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA867219D0003
IDV Type: IDC
Timeline
Start Date: 2021-06-01
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-12-18
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