DoD Awards Boeing $109.8M for JDAM Production Lot 11, No Competition
Contract Overview
Contract Amount: $109,787,130 ($109.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2008-12-05
End Date: 2011-11-16
Contract Duration: 1,076 days
Daily Burn Rate: $102.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JDAM PRODUCTION LOT 11
Place of Performance
Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $109.8 million to THE BOEING COMPANY for work described as: JDAM PRODUCTION LOT 11 Key points: 1. Significant contract value for a specific munitions program. 2. Sole-source award to a single large defense contractor. 3. Potential for cost overruns due to lack of competition. 4. Focus on critical guidance systems for aerial munitions.
Value Assessment
Rating: fair
The contract value of $109.8M for JDAM production is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value compared to potential market alternatives or previous production runs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other companies were considered. This significantly 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 higher expenditures for the Department of Defense, impacting overall taxpayer investment in defense capabilities.
Public Impact
Ensures continued supply of critical JDAM guidance kits for Air Force operations. Supports a major defense contractor and its supply chain. Highlights reliance on a single provider for essential munitions components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Potential for cost creep without competitive pressure.
- Long-term reliance on a single supplier for critical components.
Positive Signals
- Ensures production continuity for essential defense equipment.
- Award to a known, experienced defense contractor.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on guidance systems for munitions. Spending in this area is critical for national security but often involves high costs due to specialized technology and limited suppliers.
Small Business Impact
This contract was awarded directly to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price is justified and that future requirements are explored for competitive sourcing to enhance accountability.
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
- Sole-source award
- Lack of price competition
- Potential for cost overruns
- Dependency on a single supplier
Tags
search-detection-navigation-guidance-aer, department-of-defense, mo, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $109.8 million to THE BOEING COMPANY. JDAM PRODUCTION LOT 11
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 $109.8 million.
What is the period of performance?
Start: 2008-12-05. End: 2011-11-16.
What is the historical cost trend for JDAM production lots, and how does this award compare?
Without access to historical contract data for previous JDAM production lots, a direct cost comparison is not possible. However, the absence of competition in this $109.8M award raises concerns about potential price inflation compared to what might be achieved through a competitive bidding process.
What are the specific risks associated with a sole-source award for critical munitions components?
Sole-source awards for critical components like JDAM guidance kits carry risks of inflated pricing due to lack of competitive pressure. They also create dependency on a single supplier, potentially leading to supply chain vulnerabilities and reduced innovation if the supplier faces production issues or decides to discontinue the product.
How does this contract contribute to the overall effectiveness and readiness of Air Force aerial operations?
This contract ensures the continued production and availability of Joint Direct Attack Munitions (JDAMs), which are crucial for the Air Force's precision strike capabilities. By providing necessary guidance kits, it directly supports mission effectiveness and operational readiness in various combat scenarios.
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: 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, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $109,787,130
Exercised Options: $109,787,130
Current Obligation: $109,787,130
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-12-05
Current End Date: 2011-11-16
Potential End Date: 2011-11-16 00:00:00
Last Modified: 2011-11-30
More Contracts from THE Boeing Company
- KC-X Modernization Program — $32.0B (Department of Defense)
- International Space Station — $22.4B (National Aeronautics and Space Administration)
- 200112!000108!9700!ZD60 !ballistic Missile Defense ORG. !HQ000601C0001 !A!N!*!N! !20001222!20080930!848025649!848025649!009256819!n!the Boeing Company !3370 E Miraloma AVE !anaheim !ca!92806!37000!089!01!huntsville !madison !alabama !+000383571022!n!n!000000000000!ad93!rdte/Other Defense-Adv Tech DEV !S1 !services !1caa!ballistic Missile Defense SYS !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!R!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! — $18.8B (Department of Defense)
- USN P-8A FRP II Long Lead Material — $18.1B (Department of Defense)
- 200512!010860!2100!w56hzv!tacom - Warren !w56hzv05c0724 !A!N! !Y! ! !20050923!20141231!016544780!016544780!009256819!n!the Boeing Company !J S Mcdonnell Blvd !saint Louis !mo!63166!65000!510!29!st. Louis !ST. Louis (city) !missouri !+000219245691!n!n!000000000000!az15!rdte/Other Research&development-Eng/Manuf Devel !S1 !services !301 !FCS !541330!E! !1! ! ! ! ! !20200930!B! ! !A! !d!u!u!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! TAS::21 2040::TAS — $12.7B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)