DoD awards Boeing $21.5M for Small Diameter Bomb Lot 16 Production
Contract Overview
Contract Amount: $21,540,952 ($21.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2020-11-09
End Date: 2025-04-30
Contract Duration: 1,633 days
Daily Burn Rate: $13.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: SMALL DIAMETER BOMB INCREMENT I FOREIGN MILITARY SALES LOT 16 PRODUCTION
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $21.5 million to THE BOEING COMPANY for work described as: SMALL DIAMETER BOMB INCREMENT I FOREIGN MILITARY SALES LOT 16 PRODUCTION Key points: 1. Boeing secures a significant contract for critical munitions. 2. Limited competition raises questions about price discovery. 3. Potential for cost overruns exists with fixed-price incentive contracts. 4. This spending falls within the defense sector's ammunition manufacturing.
Value Assessment
Rating: fair
The contract value of $21.5M for 1633 days of performance appears reasonable for specialized munitions. However, without specific unit cost data or benchmarks for similar foreign military sales, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This lack of competition limits the government's ability to secure the best possible price through market forces and may lead to higher costs.
Taxpayer Impact: The absence of competition for this defense contract means taxpayers may not be receiving the most cost-effective solution, potentially leading to higher overall defense spending.
Public Impact
Ensures continued supply of essential munitions for military operations. Supports a major defense contractor, contributing to the defense industrial base. Foreign military sales indicate international reliance on US defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition.
- Fixed-price incentive contract carries cost overrun risk.
- Lack of detailed cost breakdown hinders value assessment.
Positive Signals
- Supports critical defense capabilities.
- Ensures supply chain for essential munitions.
- Contracts with a major defense manufacturer.
Sector Analysis
This contract falls under the defense sector, specifically within ammunition manufacturing. Spending in this area is driven by military readiness requirements and geopolitical factors. Benchmarks are difficult to ascertain due to the specialized nature of the munition.
Small Business Impact
The contract was awarded to The Boeing Company, a large defense contractor. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award.
Oversight & Accountability
The contract is managed by the Department of the Air Force. Oversight would focus on performance, delivery schedules, and adherence to the fixed-price incentive terms to manage costs and ensure mission capability.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price competition.
- Fixed-price incentive contract can lead to cost overruns.
- Lack of transparency in pricing for foreign military sales.
- Potential for contractor to leverage unique position for higher profits.
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 $21.5 million to THE BOEING COMPANY. SMALL DIAMETER BOMB INCREMENT I FOREIGN MILITARY SALES LOT 16 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 $21.5 million.
What is the period of performance?
Start: 2020-11-09. End: 2025-04-30.
What is the historical cost performance of similar Small Diameter Bomb production lots awarded to Boeing or other manufacturers?
Historical cost performance data for similar Small Diameter Bomb production lots is crucial for evaluating the fairness of this $21.5M award. Analyzing past contracts, including any cost overruns or savings achieved under fixed-price incentive structures, would provide a benchmark to assess whether this lot's pricing is competitive and reflects efficient production.
What specific factors necessitated a sole-source award for this lot, and what steps were taken to ensure fair pricing without competition?
Understanding the rationale behind the sole-source award is key to assessing risk. If unique technological requirements, proprietary manufacturing processes, or urgent national security needs dictated this approach, it might justify the lack of competition. However, the government should have employed robust negotiation strategies and independent cost estimates to mitigate the risk of paying an inflated price.
How does the unit cost of this Small Diameter Bomb lot compare to publicly available cost estimates or intelligence assessments of similar munitions?
Comparing the unit cost of these Small Diameter Bombs to external estimates or intelligence assessments is vital for determining effectiveness and value. If the per-unit cost significantly exceeds benchmarks, it could indicate inefficiencies, excessive profit margins, or a failure in price negotiation, ultimately impacting the taxpayer's return on investment for defense spending.
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: $21,540,952
Exercised Options: $21,540,952
Current Obligation: $21,540,952
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: 2020-11-09
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2025-04-23
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