DoD Awards Boeing $183.6M for JDAM Lot 26 FMS Production, Raising Oversight Concerns
Contract Overview
Contract Amount: $183,634,251 ($183.6M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-02-25
End Date: 2025-02-28
Contract Duration: 1,099 days
Daily Burn Rate: $167.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JDAM LOT 26 FMS PRODUCTION ORDER
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $183.6 million to THE BOEING COMPANY for work described as: JDAM LOT 26 FMS PRODUCTION ORDER Key points: 1. Significant contract value for Joint Direct Attack Munitions (JDAM) production. 2. Sole-source award to Boeing limits competitive pricing opportunities. 3. Potential for taxpayer overpayment due to lack of competition. 4. Ammunition manufacturing sector is critical for defense readiness.
Value Assessment
Rating: questionable
The $183.6 million award to Boeing for JDAM production lacks competitive benchmarking. Without a competitive process, it's difficult to assess if this price is optimal compared to potential market alternatives or previous JDAM contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Boeing, was considered. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these munitions, as there was no opportunity to leverage multiple bids to secure the best possible price.
Public Impact
Ensures continued supply of critical JDAM munitions for U.S. and allied forces. Supports advanced munitions manufacturing capabilities within the U.S. Potential for increased costs impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Ensures supply of critical defense asset
- Supports established defense contractor
Sector Analysis
This contract falls within the defense sector, specifically ammunition manufacturing. Spending in this area is crucial for national security, but competitive procurement is vital to ensure cost-effectiveness.
Small Business Impact
This contract was awarded directly to a large prime contractor, Boeing, and does not appear to include specific provisions or set-asides for small businesses. The primary focus is on large-scale production by an established entity.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is fair and reasonable. The Department of Defense should provide justification for the lack of competition and explore opportunities for future competitive awards.
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.
- Potential for inflated pricing.
- Lack of transparency in justification for sole-sourcing.
- No clear small business participation.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, mo, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $183.6 million to THE BOEING COMPANY. JDAM LOT 26 FMS PRODUCTION ORDER
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 $183.6 million.
What is the period of performance?
Start: 2022-02-25. End: 2025-02-28.
What is the historical cost trend for JDAM production, and how does this award compare?
Historical cost data for JDAM production is essential for evaluating the fairness of this $183.6 million award. Without access to previous contract pricing, unit costs, and any inflation adjustments, it's challenging to determine if this award represents good value or if costs have escalated disproportionately. A comparative analysis would reveal trends and potential areas for cost savings in future procurements.
What specific factors necessitated a sole-source award for JDAM Lot 26, and were alternatives explored?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Understanding the specific technical requirements or production constraints that led the Department of Defense to select Boeing exclusively is crucial. Documenting the exploration of alternative sources, even if ultimately deemed unsuitable, provides transparency and assurance that competitive principles were considered.
How does the FMS (Foreign Military Sales) aspect of this contract influence pricing and oversight compared to domestic procurement?
Foreign Military Sales contracts can introduce complexities in pricing and oversight due to varying international requirements, currency fluctuations, and different regulatory environments. It's important to ascertain if the pricing reflects standard FMS markups or if specific allied nation demands influenced the cost. Robust oversight is needed to ensure that taxpayer funds are used efficiently, even when fulfilling international commitments.
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: FIRM FIXED PRICE (J)
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: $183,634,251
Exercised Options: $183,634,251
Current Obligation: $183,634,251
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $120,983,683
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA821315D0002
IDV Type: IDC
Timeline
Start Date: 2022-02-25
Current End Date: 2025-02-28
Potential End Date: 2025-02-28 00:00:00
Last Modified: 2025-12-19
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