Boeing Awarded $61.3M for Small Diameter Bomb Production, No Competition
Contract Overview
Contract Amount: $61,265,927 ($61.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-09-29
End Date: 2025-04-30
Contract Duration: 1,674 days
Daily Burn Rate: $36.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: SMALL DIAMETER BOMB INCREMENT I FOREIGN MILITARY SALES LOT 15 PRODUCTION
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $61.3 million to THE BOEING COMPANY for work described as: SMALL DIAMETER BOMB INCREMENT I FOREIGN MILITARY SALES LOT 15 PRODUCTION Key points: 1. Significant contract awarded to a single, large defense contractor. 2. Lack of competition raises concerns about price discovery and potential overspending. 3. Long contract duration (nearly 4 years) suggests a sustained need. 4. Focus on ammunition manufacturing highlights defense spending priorities.
Value Assessment
Rating: questionable
The contract value of $61.3 million for lot 15 production is difficult to benchmark without per-unit cost data. The lack of competition suggests pricing may not be optimized.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for these munitions.
Public Impact
Taxpayers may be overpaying for essential defense equipment due to a lack of competitive bidding. The long-term nature of the contract could lock in potentially inflated prices. This award contributes to the significant defense budget allocated to munitions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Long contract duration
Positive Signals
- Addresses critical defense need for munitions
- Awarded to established defense contractor
Sector Analysis
This contract falls within the defense sector, specifically ammunition manufacturing. Defense spending on munitions is a substantial portion of the overall defense budget, with major contractors like Boeing playing a key role.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award, as it was a sole-source procurement with a large prime contractor.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and value for taxpayer dollars. Further oversight may be needed to confirm the necessity of this procurement method.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source procurement
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on cost justification
- Long-term contract duration without competition
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 $61.3 million to THE BOEING COMPANY. SMALL DIAMETER BOMB INCREMENT I FOREIGN MILITARY SALES LOT 15 PRODUCTION
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 $61.3 million.
What is the period of performance?
Start: 2020-09-29. End: 2025-04-30.
What is the per-unit cost of the Small Diameter Bomb under this contract, and how does it compare to historical or competitive procurements?
The provided data does not include per-unit cost information, making direct comparison difficult. However, the absence of competition suggests that the per-unit cost may be higher than if multiple bids were solicited. Further analysis would require access to detailed cost breakdowns and benchmarks from similar, ideally competed, contracts.
What are the specific justifications for awarding this contract on a sole-source basis, and what risks does this pose to program cost and schedule?
The justification for a sole-source award is not detailed in the provided data. Potential risks include inflated pricing due to lack of competition, reduced incentive for contractor efficiency, and potential delays if the sole source encounters production issues. Without a competitive environment, the government has less leverage to negotiate favorable terms.
How effective is the Small Diameter Bomb in meeting current operational requirements, and does this contract ensure the most cost-effective acquisition strategy?
The effectiveness of the Small Diameter Bomb in meeting operational requirements is a separate assessment from the acquisition strategy. While the bomb itself may be operationally effective, the sole-source acquisition strategy raises concerns about cost-effectiveness. A competitive process would likely yield better pricing and potentially drive innovation.
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 JAMES S 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: $61,265,927
Exercised Options: $61,265,927
Current Obligation: $61,265,927
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA867220D0001
IDV Type: IDC
Timeline
Start Date: 2020-09-29
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2025-08-08
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