Boeing Awarded $30.8M for Small Diameter Bomb I (SDB-I) M-Code by Air Force
Contract Overview
Contract Amount: $30,803,360 ($30.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-07-26
End Date: 2026-12-23
Contract Duration: 1,611 days
Daily Burn Rate: $19.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SMALL DIAMETER BOMB I (SDB-I) M-CODE
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $30.8 million to THE BOEING COMPANY for work described as: SMALL DIAMETER BOMB I (SDB-I) M-CODE Key points: 1. Boeing is the sole contractor for this specific SDB-I M-Code variant. 2. The contract is a delivery order under an existing indefinite-delivery/indefinite-quantity (IDIQ) contract. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The SDB-I M-Code is a critical component for precision strike capabilities. 5. The duration of the contract is over four years, indicating a long-term need.
Value Assessment
Rating: fair
Pricing is based on a Cost Plus Fixed Fee structure, making direct comparison difficult without detailed cost breakdowns. The fixed fee component provides some cost control, but the overall value is contingent on efficient execution by Boeing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to the specialized nature of the SDB-I M-Code and potentially existing sole-source arrangements for its development or sustainment. Lack of competition limits price discovery and potentially increases costs.
Taxpayer Impact: Taxpayer funds are committed without competitive bidding, which may result in a higher price than if multiple vendors had competed.
Public Impact
Enhances Air Force's precision strike capabilities with advanced munitions. Supports ongoing modernization efforts within the Department of Defense. Ensures availability of critical ordnance for national defense. Potential for follow-on contracts if performance is satisfactory.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type carries inherent cost risk.
- Lack of detailed cost data makes value assessment challenging.
Positive Signals
- Addresses a critical defense capability need.
- Long-term contract duration provides program stability.
- Awarded to a known and experienced defense contractor.
Sector Analysis
This contract falls within the defense sector, specifically ammunition manufacturing. Spending in this area is driven by national security requirements and technological advancements in weaponry. Benchmarks are difficult to establish due to the specialized nature of munitions.
Small Business Impact
There is no indication of small business participation in this specific contract award. The prime contractor, Boeing, is a large aerospace and defense company.
Oversight & Accountability
The contract is managed by the Department of the Air Force. Oversight would focus on cost control, performance metrics, and adherence to the fixed fee structure. The sole-source nature necessitates robust oversight to ensure fair pricing.
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
- Lack of transparency in cost build-up
- Potential for scope creep without strict oversight
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 $30.8 million to THE BOEING COMPANY. SMALL DIAMETER BOMB I (SDB-I) M-CODE
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 $30.8 million.
What is the period of performance?
Start: 2022-07-26. End: 2026-12-23.
What is the specific rationale for the sole-source award of the SDB-I M-Code, and were any market research efforts conducted to explore competitive options?
The rationale for a sole-source award typically stems from unique technical requirements, proprietary technology, or the existence of a single qualified source. For the SDB-I M-Code, it's likely tied to specific integration needs with existing platforms or unique performance characteristics. Comprehensive market research should have been conducted to confirm the absence of viable alternatives and justify the sole-source determination, ensuring taxpayer funds are used responsibly.
How does the Cost Plus Fixed Fee structure for this contract mitigate risks associated with potential cost overruns compared to other contract types?
The Cost Plus Fixed Fee (CPFF) structure aims to balance risk between the government and the contractor. The government pays the actual allowable costs incurred by the contractor, plus a predetermined fixed fee representing profit. This incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, if costs escalate significantly, the government still bears the burden of those increased costs, making robust oversight crucial.
What are the key performance indicators (KPIs) being used to measure the effectiveness and value of the SDB-I M-Code delivery order, and how are they being monitored?
Effectiveness and value are likely measured through metrics such as on-time delivery, adherence to technical specifications, reliability of the munitions in testing or operational environments, and potentially cost efficiency within the CPFF framework. The Air Force would establish specific KPIs and conduct regular reviews to monitor Boeing's performance against these benchmarks, ensuring the SDB-I M-Code meets operational requirements and provides adequate return on investment.
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: 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: $30,803,360
Exercised Options: $30,803,360
Current Obligation: $30,803,360
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $1,456,736
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: 2022-07-26
Current End Date: 2026-12-23
Potential End Date: 2026-12-23 00:00:00
Last Modified: 2025-12-23
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