Boeing Awarded $98.7M for SDB I - LOT 4 Production by Air Force
Contract Overview
Contract Amount: $98,735,631 ($98.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2007-10-30
End Date: 2010-02-26
Contract Duration: 850 days
Daily Burn Rate: $116.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: SDB I - LOT 4 PRODUCTION
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 $98.7 million to THE BOEING COMPANY for work described as: SDB I - LOT 4 PRODUCTION Key points: 1. The contract value is substantial at $98.7 million. 2. Boeing is the sole awardee, indicating a single source for this production lot. 3. The contract duration is 850 days, spanning from October 2007 to February 2010. 4. The NAICS code 334511 points to the manufacturing of search, detection, and navigation systems.
Value Assessment
Rating: fair
The contract was awarded using a Time and Materials pricing structure. Without specific details on labor rates and material markups, a precise value assessment is difficult. However, the base award amount provides a benchmark.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests an initial broad competition followed by a limitation, potentially impacting price discovery and overall competition.
Taxpayer Impact: The $98.7 million expenditure represents taxpayer funds allocated for critical defense systems, the value of which is tied to the effectiveness and necessity of the SDB I system.
Public Impact
This contract supports the production of SDB I (Small Diameter Bomb I) systems, crucial for Air Force operations. The award to Boeing highlights the company's significant role in defense manufacturing. The duration and value indicate a medium-term commitment to this specific defense capability. The manufacturing sector for navigation and guidance systems is a key component of the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method may have impacted price.
- Time and Materials pricing can lead to cost overruns if not managed tightly.
- Lack of small business participation noted.
Positive Signals
- Award to a major defense contractor ensures production capacity.
- Supports a critical weapon system for the Air Force.
- Long-term contract provides stability for production.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on guidance and navigation systems. Spending in this area is driven by military modernization and operational needs, with significant government investment.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the prime contractor, Boeing, is handling the entire production, potentially limiting opportunities for smaller firms in this specific contract.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, implying oversight from this branch of the DoD. Further oversight would typically involve program management, quality assurance, and financial tracking to ensure contract compliance and effective use of funds.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to T&M pricing.
- Limited competition raises questions about optimal price discovery.
- Lack of small business involvement.
- Contract duration and value require diligent oversight.
Tags
search-detection-navigation-guidance-aer, department-of-defense, mo, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $98.7 million to THE BOEING COMPANY. SDB I - LOT 4 PRODUCTION
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 $98.7 million.
What is the period of performance?
Start: 2007-10-30. End: 2010-02-26.
What was the rationale for excluding other sources after the initial full and open competition?
The rationale for excluding other sources after initial full and open competition typically involves factors such as proprietary technology, unique manufacturing capabilities, or specific performance requirements that only a limited number of entities can meet. Understanding this specific exclusion is key to assessing the true level of competition and potential price impacts.
How did the Time and Materials pricing structure affect the final cost compared to fixed-price alternatives?
Time and Materials (T&M) contracts offer flexibility but carry a higher risk of cost escalation compared to fixed-price contracts. Without detailed cost breakdowns, it's challenging to definitively state the final cost impact. However, T&M requires robust government oversight to manage labor hours and material costs effectively to prevent overspending.
What is the operational effectiveness and strategic importance of the SDB I system this contract supports?
The Small Diameter Bomb I (SDB I) is a precision-guided munition designed to provide warfighters with a low-cost, adverse-weather, all-weather standoff capability against fixed and moving targets. Its effectiveness lies in its small size, allowing more munitions to be carried per aircraft, and its advanced guidance, minimizing collateral damage while maximizing target destruction.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $98,735,631
Exercised Options: $98,735,631
Current Obligation: $98,735,631
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-10-30
Current End Date: 2010-02-26
Potential End Date: 2010-02-26 00:00:00
Last Modified: 2015-04-23
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