DoD Awards Boeing $78M for Joint Direct Attack Munition FMS Lot 27 Production
Contract Overview
Contract Amount: $78,176,514 ($78.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2023-03-02
End Date: 2025-04-30
Contract Duration: 790 days
Daily Burn Rate: $99.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JOINT DIRECT ATTACK MUNITION FOREIGN MILITARY SALES LOT 27 PRODUCTION ORDER
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $78.2 million to THE BOEING COMPANY for work described as: JOINT DIRECT ATTACK MUNITION FOREIGN MILITARY SALES LOT 27 PRODUCTION ORDER Key points: 1. Significant award to a single large defense contractor. 2. Foreign Military Sales (FMS) context suggests international demand. 3. Lack of competition raises potential value concerns. 4. Ammunition manufacturing sector is critical for defense readiness.
Value Assessment
Rating: fair
The award amount is substantial. Without competitive bidding, it's difficult to assess if this price represents fair value compared to potential market alternatives or previous FMS lots.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and may lead to higher costs for taxpayers and allied nations.
Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these munitions.
Public Impact
Supports U.S. allies through foreign military sales. Ensures continued production of a key munition for defense. Potential for increased costs due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for cost overruns
Positive Signals
- Supports FMS requirements
- Ensures munition availability
Sector Analysis
This award falls within the defense sector, specifically ammunition manufacturing. Spending benchmarks for similar FMS contracts would be needed for a precise comparison, but large sole-source awards are common in specialized defense procurement.
Small Business Impact
The data indicates this contract was awarded to The Boeing Company and does not show any specific set-aside for small businesses. Large sole-source defense contracts often bypass small business participation.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The Department of Defense's contracting officers are responsible for justifying the non-competitive nature of the award and ensuring value.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Sole-source award
- Potential for inflated pricing
- Limited transparency on cost justification
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 $78.2 million to THE BOEING COMPANY. JOINT DIRECT ATTACK MUNITION FOREIGN MILITARY SALES LOT 27 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 $78.2 million.
What is the period of performance?
Start: 2023-03-02. End: 2025-04-30.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. To ensure fair pricing, the agency should conduct a thorough price analysis, potentially using historical data, cost realism assessments, or independent government cost estimates, even without direct competition.
What are the long-term risks associated with relying on sole-source contracts for critical munitions like JDAMs?
Long-term reliance on sole-source contracts can stifle innovation, reduce competition, and lead to inflated prices over time. It also creates dependency on a single supplier, potentially impacting supply chain resilience and increasing vulnerability if that supplier faces production issues or significant price hikes.
How does this FMS award impact the readiness and cost-effectiveness for the U.S. Department of Defense itself?
While this award is for FMS, it could indirectly impact DoD readiness and cost-effectiveness. If the sole-source nature inflates prices for allies, it might set a precedent or influence future pricing for domestic orders. Furthermore, it reduces the competitive pressure that could drive down costs for DoD's own procurement of the same munitions.
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: $78,176,514
Exercised Options: $78,176,514
Current Obligation: $78,176,514
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $53,283,334
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: 2023-03-02
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2025-12-19
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