DoD Awards Boeing $17.9M for JDAM SABR-Y Autopilot Update, Lacking Competition
Contract Overview
Contract Amount: $17,914,260 ($17.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-08-05
End Date: 2026-06-30
Contract Duration: 1,790 days
Daily Burn Rate: $10.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JOINT DIRECT ATTACK MUNITIONS (JDAM) SABR-Y AUTOPILOT UPDATE
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $17.9 million to THE BOEING COMPANY for work described as: JOINT DIRECT ATTACK MUNITIONS (JDAM) SABR-Y AUTOPILOT UPDATE Key points: 1. Significant contract value for a specialized defense system update. 2. Sole-source award to Boeing raises questions about competitive pricing. 3. Potential risk of inflated costs due to lack of market competition. 4. Engineering services sector, critical for defense modernization.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed tightly. Without competitive bids, it's difficult to assess if the $17.9M price reflects fair market value compared to similar engineering services for advanced munitions.
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 as there was no opportunity for other vendors to offer competitive pricing.
Taxpayer Impact: The lack of competition in this sole-source award may result in higher taxpayer costs than if the contract had been competitively bid.
Public Impact
Enhances critical munitions capabilities for the Air Force. Supports advanced engineering services for defense technology. Impacts readiness and effectiveness of deployed military assets. Potential for taxpayer funds to be used inefficiently due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Critical defense system upgrade
- Supports Air Force modernization
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector vital for defense procurement. Spending in this area is often characterized by complex, specialized requirements and can be prone to sole-source awards when specific expertise is needed, though competition is generally preferred.
Small Business Impact
The data provided does not indicate any specific set-aside for small businesses. The awardee is The Boeing Company, a large defense contractor, suggesting limited direct opportunity for small businesses on this particular contract.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and the scope of work aligns with the stated objectives. Robust auditing of the cost-plus fixed fee elements will be crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Cost-plus contract type carries inherent cost overrun risk.
- Lack of small business participation.
- Potential for inefficient use of taxpayer funds due to lack of competition.
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 $17.9 million to THE BOEING COMPANY. JOINT DIRECT ATTACK MUNITIONS (JDAM) SABR-Y AUTOPILOT UPDATE
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 $17.9 million.
What is the period of performance?
Start: 2021-08-05. End: 2026-06-30.
What is the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically stems from unique capabilities or proprietary technology held by a single vendor. For the JDAM SABR-Y Autopilot Update, it's crucial to understand if Boeing possesses exclusive rights or indispensable expertise. The Department of Defense should have explored if any other qualified contractors could meet the requirements, even with modifications, to ensure the best value for taxpayer dollars.
How will the cost-plus fixed fee structure be monitored to prevent cost overruns and ensure fair pricing?
Monitoring a Cost Plus Fixed Fee (CPFF) contract requires diligent oversight. The government must rigorously track all incurred costs, ensuring they are allowable, allocable, and reasonable. Regular audits and performance reviews are essential to verify that the fixed fee remains appropriate given the contractor's performance and adherence to the contract's objectives. Transparency in reporting costs is key to preventing potential overruns.
What is the expected impact of this autopilot update on the operational effectiveness and readiness of the JDAM system?
The JDAM SABR-Y Autopilot Update is expected to significantly enhance the system's precision, range, or targeting capabilities, thereby improving the overall effectiveness and readiness of deployed munitions. This upgrade likely addresses evolving threats or operational requirements, ensuring the Air Force maintains a technological edge and can execute missions with greater success and reduced collateral damage.
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: $17,914,260
Exercised Options: $17,914,260
Current Obligation: $17,914,260
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,971,505
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: 2021-08-05
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-12-22
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)