Boeing awarded $164.6M for JDAM technical support and aircraft integration by the Air Force
Contract Overview
Contract Amount: $16,459,490 ($16.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2019-08-07
End Date: 2024-12-31
Contract Duration: 1,973 days
Daily Burn Rate: $8.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JOINT DIRECT ATTACK MUNITION TECHNICAL SUPPORT AND AIRCRAFT INTEGRATION
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $16.5 million to THE BOEING COMPANY for work described as: JOINT DIRECT ATTACK MUNITION TECHNICAL SUPPORT AND AIRCRAFT INTEGRATION Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns if not managed carefully. 2. The duration of the contract, spanning over 5 years, suggests a long-term need for these services. 3. The absence of competition raises concerns about potential overpricing and lack of innovation. 4. This contract supports the Joint Direct Attack Munition (JDAM) program, critical for air-to-ground operations. 5. The technical support and aircraft integration services are essential for maintaining and enhancing weapon system capabilities.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a lack of competition, makes a definitive value assessment difficult without further data. Benchmarking against similar technical support contracts for complex defense systems is challenging due to the specialized nature of JDAM integration. However, the significant award amount over a five-year period warrants scrutiny to ensure efficient use of taxpayer funds and that the fixed fee adequately incentivizes cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates a direct award. The lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing and terms.
Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates robust government oversight to ensure fair pricing.
Public Impact
The U.S. Air Force benefits from continued technical support and integration for its JDAM systems, ensuring operational readiness. Aircrews and ground personnel receive enhanced capabilities and reliability through the integration and support services. The contract supports high-skilled engineering and technical jobs within the aerospace sector, primarily at The Boeing Company. The geographic impact is concentrated where Boeing facilities perform the work, likely in Missouri, supporting the local economy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated costs.
- Cost-plus-fixed-fee contracts require diligent oversight to prevent cost overruns.
- Sole-source awards limit transparency in pricing negotiations.
Positive Signals
- Supports a critical defense program (JDAM).
- Long-term contract provides stability for essential services.
- Boeing is a major defense contractor with established expertise.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related aerospace and weapon systems. The market for such specialized technical support and integration services is dominated by a few large defense contractors. The $164.6 million award is significant, reflecting the complexity and criticality of the JDAM program. Comparable spending benchmarks would involve other major platform integration or sustainment contracts within the Department of Defense.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' field is also false, suggesting no specific small business subcontracting goals were mandated within this award. This means the primary contractor, Boeing, will likely perform the majority of the work, with limited direct benefit or subcontracting opportunities for small businesses on this specific contract.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Given the sole-source nature and cost-plus-fixed-fee structure, rigorous monitoring of costs, performance, and adherence to the contract's technical requirements is crucial. Transparency may be limited due to the non-competitive award, but internal government reviews and potentially Inspector General audits would ensure accountability.
Related Government Programs
- Joint Direct Attack Munition (JDAM) Program
- Air Force Weapon System Sustainment
- Aerospace Engineering Services
- Defense Contractor Support Services
Risk Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Tags
defense, department-of-defense, air-force, engineering-services, technical-support, aircraft-integration, joint-direct-attack-munition, boeing, cost-plus-fixed-fee, sole-source, missouri, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.5 million to THE BOEING COMPANY. JOINT DIRECT ATTACK MUNITION TECHNICAL SUPPORT AND AIRCRAFT INTEGRATION
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 $16.5 million.
What is the period of performance?
Start: 2019-08-07. End: 2024-12-31.
What is the historical spending trend for JDAM technical support and aircraft integration services provided by The Boeing Company?
Analyzing historical spending requires access to detailed contract databases beyond the provided data. However, the current award of $164.6 million from August 2019 to December 2024 suggests a consistent, significant investment in maintaining and enhancing JDAM capabilities. If previous contracts for similar services were also sole-sourced and cost-plus, it could indicate a pattern of limited competition and potentially higher costs over time. Further investigation into prior contract awards for JDAM support, including the number of bidders and contract types, would be necessary to establish a comprehensive spending trend and assess value for money.
How does the pricing structure (Cost Plus Fixed Fee) compare to industry standards for similar defense integration services?
Cost Plus Fixed Fee (CPFF) is a common contract type in defense acquisition, particularly for complex development or integration efforts where the final costs are difficult to predict. The 'cost-plus' portion means the contractor is reimbursed for allowable costs, while the 'fixed fee' represents their profit. While standard, CPFF contracts carry inherent risks of cost overruns if not meticulously managed. Industry benchmarks for the fixed fee percentage vary based on contract complexity, risk, and contractor performance. Without specific details on the fee percentage negotiated for this JDAM contract and comparisons to similar sole-source integration efforts, it's difficult to definitively state if the pricing is competitive. However, the lack of competition inherently weakens the government's negotiating position.
What specific risks are associated with the sole-source award of this technical support contract?
The primary risk associated with a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. This can lead to taxpayers paying more than necessary for the services rendered. Another risk is reduced incentive for the contractor to innovate or improve efficiency, as they are the only provider. Furthermore, sole-source awards can sometimes mask underlying issues with program management or requirements definition, as a competitive process might have revealed alternative solutions or identified potential problems earlier. Ensuring robust oversight and negotiation is critical to mitigate these risks.
What is The Boeing Company's track record with JDAM program support and similar defense integration contracts?
The Boeing Company is a major, established defense contractor with extensive experience in aerospace engineering, aircraft integration, and weapon system support. They have a long history of working on complex defense programs for the U.S. military. While specific performance metrics for this particular JDAM technical support contract are not provided, Boeing's general track record suggests they possess the technical expertise and infrastructure required. However, like any large contractor, they may have faced past performance issues on other contracts, which would typically be assessed during a competitive procurement process. For sole-source awards, the government relies heavily on existing knowledge of the contractor's capabilities and past performance.
How does this contract contribute to the overall effectiveness and modernization of the JDAM system?
This contract is crucial for the ongoing effectiveness and potential modernization of the Joint Direct Attack Munition (JDAM) system. Technical support ensures that the existing munitions function reliably and are maintained to operational standards. Aircraft integration services are vital for ensuring that JDAMs can be effectively deployed from various Air Force platforms, potentially including upgrades for new aircraft or modifications to existing ones. By providing these services, the contract helps maintain the warfighting capability of the JDAM, a cornerstone of U.S. air-to-ground power projection, and supports its continued relevance in evolving threat environments.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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: $16,459,490
Exercised Options: $16,459,490
Current Obligation: $16,459,490
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $1,024,239
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA868119D0005
IDV Type: IDC
Timeline
Start Date: 2019-08-07
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2025-09-30
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)