DoD awards $63.7M for Joint Direct Attack Munitions to Boeing, facing limited competition
Contract Overview
Contract Amount: $63,757,460 ($63.8M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2017-03-01
End Date: 2019-05-31
Contract Duration: 821 days
Daily Burn Rate: $77.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: JOINT DIRECT ATTACK MUNITION LOT 21 FOREIGN MILITARY SALES
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $63.8 million to THE BOEING COMPANY for work described as: JOINT DIRECT ATTACK MUNITION LOT 21 FOREIGN MILITARY SALES Key points: 1. Significant contract value of $63.7 million for munitions. 2. Sole-source award to The Boeing Company raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Spending falls within the Defense sector, specifically ammunition manufacturing.
Value Assessment
Rating: fair
The contract value of $63.7 million for ammunition is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar munitions contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method may limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be benefiting from the most competitive pricing available in the market.
Public Impact
Ensures supply of critical munitions for military operations. Potential for increased defense spending without competitive pressure. Impacts the defense industrial base, specifically ammunition manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential defense procurement
- Supports existing weapon systems
Sector Analysis
This contract falls under the Defense sector, specifically within ammunition manufacturing. Spending benchmarks for such specialized munitions can vary widely based on technological complexity and geopolitical demand.
Small Business Impact
The data does not indicate any specific provisions or benefits for small businesses in this sole-source award to The Boeing Company.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent potential waste. The Department of the Air Force is responsible for managing this award.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Limited competition
- Potential for price escalation
- Lack of transparency in pricing justification
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 $63.8 million to THE BOEING COMPANY. JOINT DIRECT ATTACK MUNITION LOT 21 FOREIGN MILITARY SALES
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 $63.8 million.
What is the period of performance?
Start: 2017-03-01. End: 2019-05-31.
What is the justification for the sole-source award of the Joint Direct Attack Munition contract?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of viable alternatives. Without further details, it's difficult to ascertain the specific reasons behind this decision for the JDAM contract.
How does the lack of competition impact the long-term cost-effectiveness of this munition?
A lack of competition can lead to higher unit costs over time as the sole provider faces no market pressure to innovate or reduce expenses. This can result in increased long-term spending for the Department of Defense compared to scenarios with competitive bidding.
Are there plans to introduce competition for future lots of this munition?
The provided data does not specify future procurement plans or intentions to introduce competition for subsequent lots of the Joint Direct Attack Munition. Future decisions would depend on market analysis, strategic sourcing initiatives, and evolving defense requirements.
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: FIXED PRICE INCENTIVE (L)
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: $63,757,460
Exercised Options: $63,757,460
Current Obligation: $63,757,460
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $57,054,957
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA821315D0002
IDV Type: IDC
Timeline
Start Date: 2017-03-01
Current End Date: 2019-05-31
Potential End Date: 2019-05-31 00:00:00
Last Modified: 2019-11-22
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)