DoD awards Boeing $251.8M for Massive Ordnance Penetrator, a sole-source contract for advanced missile systems
Contract Overview
Contract Amount: $251,776,644 ($251.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2009-07-15
End Date: 2018-07-31
Contract Duration: 3,303 days
Daily Burn Rate: $76.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MASSIVE ORDNANCE PENETRATOR
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $251.8 million to THE BOEING COMPANY for work described as: MASSIVE ORDNANCE PENETRATOR Key points: 1. Significant investment in advanced munitions capability. 2. Sole-source award to Boeing raises questions about price discovery. 3. Long contract duration (2009-2018) suggests a complex, evolving program. 4. Focus on missile system manufacturing within the aerospace sector.
Value Assessment
Rating: questionable
The contract value of $251.8M over nine years for a specialized weapon system is difficult to benchmark without specific performance data. The lack of competition inherently limits price comparison.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices.
Taxpayer Impact: The absence of competition may result in a higher cost to taxpayers than if multiple vendors had vied for the contract.
Public Impact
Enhances strategic deterrence capabilities for the U.S. Air Force. Supports advanced aerospace manufacturing and technological development. Represents a significant allocation of defense spending towards offensive weaponry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Sole-source award
Positive Signals
- Critical defense capability development
- Award to established prime contractor
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on advanced missile systems. Spending in this area is driven by national security needs and technological advancements.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award, as it was a sole-source award to a large prime contractor.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and effective use of funds. Further review of the justification for sole-sourcing would be beneficial.
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 limits price competition.
- Long contract duration may indicate cost overruns or scope creep.
- Lack of transparency in pricing due to non-competitive nature.
- Potential for higher taxpayer cost without competitive pressure.
Tags
search-detection-navigation-guidance-aer, department-of-defense, mo, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $251.8 million to THE BOEING COMPANY. MASSIVE ORDNANCE PENETRATOR
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 $251.8 million.
What is the period of performance?
Start: 2009-07-15. End: 2018-07-31.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternative sources. For advanced weapon systems like the Massive Ordnance Penetrator, the government may have determined that only The Boeing Company possessed the specific expertise and technology required to develop and produce the system, thereby precluding a competitive bidding process.
How does the cost of the Massive Ordnance Penetrator compare to similar munitions, given the lack of competition?
Direct cost comparison is challenging due to the unique nature of the Massive Ordnance Penetrator and the absence of competitive bids. Sole-source contracts often lack transparent pricing benchmarks. However, the significant investment suggests a high unit cost, and without competition, there's a risk that the price may not reflect optimal value for taxpayer dollars compared to potentially more cost-effective alternatives if they existed.
What is the long-term strategic value and effectiveness of the Massive Ordnance Penetrator program?
The Massive Ordnance Penetrator is designed as a deep-penetrating munition capable of destroying hardened underground targets. Its strategic value lies in its potential to neutralize heavily fortified enemy command centers or weapons facilities. The effectiveness is contingent on successful development, integration, and deployment, contributing to the U.S. Air Force's strategic strike capabilities and deterrence posture.
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, 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: $257,250,635
Exercised Options: $251,776,644
Current Obligation: $251,776,644
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-07-15
Current End Date: 2018-07-31
Potential End Date: 2018-07-31 00:00:00
Last Modified: 2021-01-26
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