DoD Awards Boeing $10M for Small Diameter Bomb Increment I Common Support
Contract Overview
Contract Amount: $9,998,772 ($10.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-09-01
End Date: 2025-12-31
Contract Duration: 1,947 days
Daily Burn Rate: $5.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SMALL DIAMETER BOMB INCREMENT I COMMON SUPPORT
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $10.0 million to THE BOEING COMPANY for work described as: SMALL DIAMETER BOMB INCREMENT I COMMON SUPPORT Key points: 1. Contract awarded to The Boeing Company for $9.99M. 2. Services include engineering support for the Small Diameter Bomb. 3. The contract was not available for competition. 4. This falls under Engineering Services (NAICS 541330).
Value Assessment
Rating: fair
The contract value is $9.99M. Without comparable contracts or detailed cost breakdowns, assessing value for money is difficult. The Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning competition was not sought. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The sole-source nature of this award may result in a higher cost to taxpayers due to the lack of competitive bidding.
Public Impact
Supports critical defense systems, ensuring operational readiness. Potential for cost inefficiencies due to sole-source award. Impacts the aerospace and defense sector supply chain. Long-term support contract extending over several years.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type.
- Lack of detailed cost information.
Positive Signals
- Supports a key defense program.
- Long-term contract provides stability.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense systems. Spending benchmarks for similar sole-source engineering support contracts can vary widely, but competitive bids typically yield better pricing.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award, either as prime contractors or subcontractors. Further investigation would be needed to determine potential small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets requirements. The Department of the Air Force is responsible for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award.
- Cost Plus Fixed Fee contract type.
- Lack of transparency in cost breakdown.
- Potential for cost overruns.
- Limited visibility into small business participation.
Tags
engineering-services, department-of-defense, mo, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.0 million to THE BOEING COMPANY. SMALL DIAMETER BOMB INCREMENT I 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 $10.0 million.
What is the period of performance?
Start: 2020-09-01. End: 2025-12-31.
What specific engineering services are being provided under this contract, and how do they directly contribute to the Small Diameter Bomb program's objectives?
The contract specifies 'Common Support' for the Small Diameter Bomb Increment I. This likely encompasses a range of engineering services such as sustainment, logistics support, technical data management, and potentially minor modifications or upgrades. These services are crucial for ensuring the bomb system remains operational, effective, and safe throughout its lifecycle, directly supporting the Air Force's mission readiness and strategic capabilities.
Given the sole-source award, what mechanisms are in place to ensure the Cost Plus Fixed Fee structure does not lead to excessive contractor profit or inefficient cost management?
The Department of Defense typically employs several mechanisms to mitigate risks associated with CPFF contracts, especially sole-source ones. These include rigorous cost audits, performance metrics tied to fee achievement, and regular reviews of contractor expenditures. Establishing a realistic fixed fee based on historical data or independent cost estimates is also critical. Continuous communication and surveillance by the contracting officer are essential to ensure the contractor remains focused on efficient performance.
How does the $9.99M award for 'Common Support' compare to industry benchmarks for similar engineering services on complex weapon systems, particularly when awarded non-competitively?
Benchmarking sole-source contracts for complex defense systems is challenging due to the unique nature of the technology and support required. However, industry standards suggest that non-competitive awards often result in prices 10-30% higher than competitive ones. Without specific details on the scope of 'Common Support,' a precise comparison is difficult, but the lack of competition raises concerns about potential overpricing relative to what could be achieved through a competitive process.
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 AVAILABLE FOR COMPETITION
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: $25,740,181
Exercised Options: $13,789,721
Current Obligation: $9,998,772
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $433,500
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA868119D0009
IDV Type: IDC
Timeline
Start Date: 2020-09-01
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2026-01-08
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)