DoD's $69.6M Boeing Contract for Missile Manufacturing: A Firm Fixed Price Deal
Contract Overview
Contract Amount: $69,557,817 ($69.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2013-04-12
End Date: 2016-02-29
Contract Duration: 1,053 days
Daily Burn Rate: $66.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ISRAEL OPTION BUY
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $69.6 million to THE BOEING COMPANY for work described as: ISRAEL OPTION BUY Key points: 1. The contract value is $69.6 million, awarded to The Boeing Company. 2. This is a sole-source contract, indicating limited competition. 3. The contract type is Firm Fixed Price, which shifts risk to the contractor. 4. The sector is Guided Missile and Space Vehicle Manufacturing, a specialized defense area.
Value Assessment
Rating: fair
The contract value of $69.6 million for missile manufacturing is difficult to assess without specific unit cost data or benchmarks for similar systems. The firm fixed price nature suggests a defined cost expectation, but the lack of detailed pricing information makes a direct comparison challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive bidding process. The government relies on negotiation and contractor cost justification in such scenarios.
Taxpayer Impact: The lack of competition in this sole-source contract may result in taxpayers paying a premium for the missile systems, as competitive pressures that drive down costs are absent.
Public Impact
Taxpayer funds are allocated to a specialized defense manufacturing contract. The contract supports the aerospace and defense industry, specifically missile production. This spending contributes to national defense capabilities through the acquisition of guided missiles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of detailed cost breakdown makes value assessment difficult.
- Contract duration of 1053 days requires ongoing monitoring.
Positive Signals
- Firm Fixed Price contract shifts cost overrun risk to the contractor.
- Award to a major defense contractor like Boeing suggests established capability.
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of the defense industrial base. Spending in this area is typically high-value and driven by national security requirements, often involving complex technologies and specialized production capabilities.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct impact on the small business sector for this specific award.
Oversight & Accountability
The contract is a definitive contract, implying a formal agreement with defined terms. Oversight would involve monitoring performance, delivery schedules, and adherence to the firm fixed price, with accountability resting on Boeing for fulfilling contract requirements.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- Limited cost transparency
- Potential for higher costs due to lack of competition
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, mo, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $69.6 million to THE BOEING COMPANY. ISRAEL OPTION BUY
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 $69.6 million.
What is the period of performance?
Start: 2013-04-12. End: 2016-02-29.
What is the cost per unit for the guided missiles procured under this contract, and how does it compare to industry benchmarks for similar systems?
The provided data does not include a per-unit cost. To assess value, a detailed cost breakdown from Boeing would be necessary, allowing comparison against industry benchmarks for guided missile systems of comparable complexity and capability. Without this, a precise value assessment is not possible.
What are the specific justifications for awarding this contract on a sole-source basis, and what measures are in place to mitigate potential cost overruns?
The justification for a sole-source award is not detailed in the data. Mitigation of cost overruns is primarily addressed by the Firm Fixed Price contract type, which places the financial risk on Boeing. However, the government should still conduct robust oversight to ensure performance and adherence to the agreed-upon price.
How does the performance of this contract contribute to the overall effectiveness of the Department of the Air Force's missile capabilities?
The effectiveness of this contract is tied to Boeing's successful delivery of the specified guided missiles within the agreed timeframe and quality standards. These missiles are intended to enhance the Air Force's operational capabilities, but their ultimate effectiveness depends on their integration into broader military strategies and their performance in real-world scenarios.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $69,557,818
Exercised Options: $69,557,817
Current Obligation: $69,557,817
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2013-04-12
Current End Date: 2016-02-29
Potential End Date: 2016-02-29 00:00:00
Last Modified: 2016-02-01
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