DoD awards $19.5M for Joint Direct Attack Munition Support to Boeing, raising concerns about limited competition
Contract Overview
Contract Amount: $19,522,353 ($19.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-09-01
End Date: 2026-03-09
Contract Duration: 2,015 days
Daily Burn Rate: $9.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JOINT DIRECT ATTACK MUNITION COMMON SUPPORT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $19.5 million to THE BOEING COMPANY for work described as: JOINT DIRECT ATTACK MUNITION COMMON SUPPORT Key points: 1. Significant contract value awarded to a single, large defense contractor. 2. Lack of competition may lead to suboptimal pricing and reduced innovation. 3. Potential risk of overpayment due to sole-source or limited competition. 4. Engineering services sector often sees high demand, but competition is key.
Value Assessment
Rating: questionable
The contract's pricing structure (Cost Plus Fixed Fee) can be less transparent. Without competitive bidding, it's difficult to benchmark against similar services to ensure fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited competition approach. This limits price discovery and may not yield the best value for taxpayers.
Taxpayer Impact: Limited competition can result in higher costs for taxpayers compared to fully competed contracts.
Public Impact
Taxpayers may be paying more than necessary due to the lack of competitive bidding. The reliance on a single contractor could impact the long-term availability and cost of these critical munitions. Defense spending on specialized engineering services warrants scrutiny to ensure efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Awarded to a known, established defense contractor
- Supports critical defense capabilities
Sector Analysis
This contract falls under engineering services, a broad category. Defense contracts in this sector can be substantial, but competitive processes are crucial for cost efficiency.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award, which is common for large, specialized defense procurements.
Oversight & Accountability
The 'NOT COMPETED' status suggests that oversight mechanisms may not have been fully utilized to explore competitive options. Further review of the justification for limited competition is warranted.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for inflated costs
- Contract type (CPFF) can obscure true costs
- Long contract duration increases exposure to price changes
Tags
engineering-services, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.5 million to THE BOEING COMPANY. JOINT DIRECT ATTACK MUNITION COMMON SUPPORT
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 $19.5 million.
What is the period of performance?
Start: 2020-09-01. End: 2026-03-09.
What was the justification for not competing this contract, and were alternative solutions explored?
The justification for not competing this contract is not provided in the data. Typically, justifications include factors like urgent need, sole-source availability of the technology, or specific contractor expertise. Without this information, it's impossible to assess if alternative solutions were adequately explored or if the limited competition was truly necessary.
How does the Cost Plus Fixed Fee structure impact the risk of cost overruns for this contract?
Cost Plus Fixed Fee (CPFF) contracts share cost risk between the government and the contractor. While the contractor is incentivized to control costs to achieve their fixed fee, the government bears the risk of cost overruns if actual costs exceed the estimate. This structure can be less predictable for the government compared to fixed-price contracts.
What is the potential impact on future defense procurement strategies if limited competition becomes the norm for critical systems like JDAM support?
If limited competition becomes the norm for critical systems, it could stifle innovation, reduce overall market competition, and potentially lead to sustained higher costs for the Department of Defense. It may also create dependencies on specific contractors, impacting long-term strategic flexibility and resilience.
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: $47,737,903
Exercised Options: $25,146,931
Current Obligation: $19,522,353
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $193,500
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: 2020-09-01
Current End Date: 2026-03-09
Potential End Date: 2026-03-09 00:00:00
Last Modified: 2026-01-09
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