DoD Awards $59.9M for Joint Direct Attack Munitions to Boeing, Raising Concerns Over Competition
Contract Overview
Contract Amount: $59,896,895 ($59.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-12-17
End Date: 2026-11-30
Contract Duration: 2,174 days
Daily Burn Rate: $27.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JOINT DIRECT ATTACK MUNITIONS (JDAM)
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $59.9 million to THE BOEING COMPANY for work described as: JOINT DIRECT ATTACK MUNITIONS (JDAM) Key points: 1. Significant contract value awarded to a single vendor. 2. Lack of competition raises questions about price discovery and potential overspending. 3. Long contract duration (2020-2026) suggests ongoing reliance on this vendor. 4. Engineering services sector is critical for defense capabilities.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a lack of competition, makes it difficult to assess value. Without competitive bids, it's hard to benchmark pricing against similar munitions or services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition on this large contract may result in taxpayers paying more than necessary for these critical munitions.
Public Impact
Taxpayers may be overpaying for essential military equipment due to a lack of competitive bidding. The long-term award could stifle innovation from other potential suppliers in the defense sector. Dependence on a single supplier for critical munitions poses a potential supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- No small business participation indicated
Positive Signals
- Essential defense capability
- Award to established prime contractor
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to defense systems. Spending benchmarks for such specialized services are often opaque, but large sole-source awards warrant scrutiny.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the prime contractor is a large corporation. Further analysis is needed to determine if small businesses were excluded or had opportunities to participate as subcontractors.
Oversight & Accountability
The sole-source nature of this award suggests potential weaknesses in the procurement process. Robust oversight is needed to ensure fair pricing and explore future competitive opportunities.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
- Potential for cost overruns
- Supply chain dependency
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 $59.9 million to THE BOEING COMPANY. JOINT DIRECT ATTACK MUNITIONS (JDAM)
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 $59.9 million.
What is the period of performance?
Start: 2020-12-17. End: 2026-11-30.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to introduce competition in the future?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. However, for a program like JDAM, which has been in existence for some time, the absence of competition is concerning. Future steps should involve market research to identify potential competitors and phased procurements designed to encourage new entrants or re-competition.
How does the cost-plus-fixed-fee structure impact the government's ability to control costs for these munitions, especially without competition?
Cost-plus-fixed-fee contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can still escalate if actual costs are higher than anticipated. Without competition, there's less incentive for the contractor to aggressively manage costs, potentially leading to higher overall expenditures for the government compared to a fixed-price contract awarded competitively.
What is the strategic risk associated with awarding a significant portion of JDAM production and support to a single entity for an extended period?
The strategic risk includes potential supply chain disruptions if the sole provider faces issues (e.g., financial, operational, geopolitical). It also creates a single point of failure for a critical defense capability. Furthermore, it limits the government's flexibility to adapt to evolving threats or adopt new technologies if only one supplier is involved in development and production.
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: $59,896,895
Exercised Options: $59,896,895
Current Obligation: $59,896,895
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $41,825,966
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: 2020-12-17
Current End Date: 2026-11-30
Potential End Date: 2026-11-30 00:00:00
Last Modified: 2026-01-07
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)