DoD Awards Boeing $1.15 Billion for Massive Ordnance Penetrator Modification Phase III
Contract Overview
Contract Amount: $11,518,490 ($11.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-11-10
End Date: 2026-05-19
Contract Duration: 1,651 days
Daily Burn Rate: $7.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MASSIVE ORDNANCE PENETRATOR MODIFICATION PHASE III
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $11.5 million to THE BOEING COMPANY for work described as: MASSIVE ORDNANCE PENETRATOR MODIFICATION PHASE III Key points: 1. Significant investment in advanced munitions capabilities. 2. Sole-source award to Boeing raises questions about competition and pricing. 3. Long-term contract duration (over 4 years) suggests complex development. 4. Focus on missile modification, not new development, may limit innovation.
Value Assessment
Rating: questionable
The contract value of $1.15 billion for modification phase III is substantial. Without comparable contracts or detailed cost breakdowns, assessing its value for money is difficult. The cost-plus-fixed-fee structure can incentivize cost overruns.
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 compared to a competitive process.
Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may be paying a premium for the ordnance modification.
Public Impact
Enhances strategic bombing capabilities for the Air Force. Supports the development of advanced, heavy-penetrating munitions. Potential for job creation within the aerospace and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
- High dollar value
Positive Signals
- Addresses critical defense modernization needs
- Leverages existing platform expertise
Sector Analysis
This contract falls within the defense sector, specifically ammunition manufacturing. Spending benchmarks for advanced munitions development and modification are highly variable, but $1.15 billion is a significant allocation.
Small Business Impact
There is no indication that small businesses are involved in this specific contract award. The prime contractor, Boeing, typically manages large-scale defense programs with its own supply chains.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Department of Defense and Congress to ensure cost reasonableness and program effectiveness. Robust auditing of costs will be crucial.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and price negotiation.
- Cost-plus contract type carries inherent risk of cost overruns.
- Long contract duration increases exposure to changing requirements and economic factors.
- High contract value necessitates rigorous oversight to ensure fiscal responsibility.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, mo, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.5 million to THE BOEING COMPANY. MASSIVE ORDNANCE PENETRATOR MODIFICATION PHASE III
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 $11.5 million.
What is the period of performance?
Start: 2021-11-10. End: 2026-05-19.
What specific technological advancements does Phase III of the Massive Ordnance Penetrator modification entail, and how do these justify the sole-source award and significant cost?
Phase III likely focuses on integrating next-generation guidance, control, or warhead technologies into the Massive Ordnance Penetrator. Justification for a sole-source award would typically hinge on unique proprietary knowledge, specialized tooling, or critical integration challenges that only Boeing possesses. The cost is justified by the perceived strategic necessity and the complexity of these advanced modifications, aiming to maintain a technological edge in deep-penetrating munitions.
How will the cost-plus-fixed-fee structure be managed to prevent potential cost overruns and ensure taxpayer value, given the contract's substantial value?
Effective management of a cost-plus-fixed-fee contract requires stringent oversight, detailed cost tracking, and regular audits by the contracting agency. The Air Force must establish clear performance metrics and milestones, with penalties for deviations. Fixed-fee components should be carefully negotiated, and any changes to scope must undergo rigorous review to prevent scope creep. Transparency in reporting actual costs versus estimates is paramount.
What is the projected operational impact and strategic advantage gained from the modified Massive Ordnance Penetrator, and how does this align with current geopolitical threats?
The modified MOP is designed to penetrate hardened and buried targets, providing a critical capability against deeply fortified enemy infrastructure. Its enhanced accuracy and destructive power offer a significant strategic advantage in scenarios involving heavily defended command centers or weapons facilities. This capability aligns with geopolitical strategies focused on deterring or neutralizing high-value, hardened targets, ensuring the U.S. maintains a credible response option.
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
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $13,691,659
Exercised Options: $11,518,490
Current Obligation: $11,518,490
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,569,008
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-11-10
Current End Date: 2026-05-19
Potential End Date: 2026-05-19 00:00:00
Last Modified: 2025-12-30
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