Boeing awarded $17.2M for SDB I BRU SPARES, with contract ending Sept 2028
Contract Overview
Contract Amount: $17,208,290 ($17.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2025-09-30
End Date: 2028-09-30
Contract Duration: 1,096 days
Daily Burn Rate: $15.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SDB I BRU SPARES 5B
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $17.2 million to THE BOEING COMPANY for work described as: SDB I BRU SPARES 5B Key points: 1. Contract value represents a significant investment in critical aerospace components. 2. Sole-source award suggests limited market alternatives or specific technical requirements. 3. Long-term contract duration indicates a sustained need for these spares. 4. Fixed-price contract type shifts cost risk to the contractor. 5. Delivery order structure allows for phased procurement and delivery. 6. Geographic focus on Missouri for this contract.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific details on the SDB I BRU SPARES. However, the $17.2 million awarded over approximately three years suggests a substantial per-unit cost for these specialized components. Given the sole-source nature, it's difficult to compare pricing against competitive bids. Further analysis would require understanding the specific technical specifications and the criticality of these spares to the overall SDB I program.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating that the Department of Defense identified The Boeing Company as the only responsible source capable of providing the required SDB I BRU SPARES. This typically occurs when a contractor possesses unique capabilities, proprietary technology, or when urgency and specific requirements preclude a competitive process. The lack of competition means that price discovery through market forces was not utilized.
Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive bidding, as the government did not benefit from price reductions that often result from multiple offers.
Public Impact
The primary beneficiaries are the Department of Defense and specifically the Air Force, ensuring the operational readiness of the SDB I program. Services delivered include the provision of critical spare parts for the SDB I BRU system. The geographic impact is centered in Missouri, where the contractor is located. Workforce implications include continued employment for skilled labor at Boeing involved in manufacturing and supplying these specialized parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition and potentially increases costs for taxpayers.
- Lack of transparency in the justification for sole-sourcing requires further scrutiny.
- Long-term commitment without competitive re-evaluation could lead to complacency in cost management.
Positive Signals
- Contract ensures critical spare parts availability for a key defense system, supporting operational readiness.
- Fixed-price contract type provides cost certainty for the government once awarded.
- Delivery order structure allows for flexibility in managing procurement timelines and cash flow.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting the sustainment of a weapons system. The market for specialized aerospace components like SDB I BRU SPARES is often concentrated among a few key manufacturers due to high barriers to entry, including technical expertise, intellectual property, and established supply chains. Spending in this area is critical for maintaining the readiness and effectiveness of military assets.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The prime contractor, The Boeing Company, is a large aerospace firm. There is no explicit information regarding subcontracting plans for small businesses within this specific award, though large defense contractors often have subcontracting goals as part of broader agreements. The direct impact on the small business ecosystem from this particular contract is likely minimal unless Boeing actively engages small businesses for specific components or services.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the contract terms, particularly the fixed-price nature and delivery schedules. Transparency is limited due to the sole-source award, but contract award data is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Small Diameter Bomb (SDB) Program
- Aerospace Component Procurement
- Defense Logistics and Sustainment
- Air Force Weapon System Support
Risk Flags
- Sole-source award may indicate limited competition, potentially leading to higher costs.
- Long contract duration requires ongoing monitoring to ensure continued value.
- Lack of detailed justification for sole-sourcing warrants further investigation.
Tags
defense, department-of-defense, air-force, aerospace, spare-parts, sole-source, delivery-order, fixed-price, missouri, boeing, sdb-i, bru
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.2 million to THE BOEING COMPANY. SDB I BRU SPARES 5B
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 $17.2 million.
What is the period of performance?
Start: 2025-09-30. End: 2028-09-30.
What is the specific function and criticality of the SDB I BRU SPARES being procured?
The SDB I BRU SPARES refer to spare parts for the Bomb Rack Unit (BRU) associated with the Small Diameter Bomb Increment I (SDB I) system. The BRU is a crucial component that interfaces the bomb with the aircraft's weapon pylon, enabling its release. These spares are essential for maintaining the operational readiness and reliability of the SDB I system, ensuring that aircraft can be equipped with these precision munitions. Without adequate spares for the BRU, the deployment capability of the SDB I could be compromised, impacting mission effectiveness.
What is the historical spending trend for SDB I BRU SPARES with The Boeing Company?
Analyzing historical spending trends for SDB I BRU SPARES with The Boeing Company requires access to detailed contract databases beyond the provided data. The current award of $17.2 million is for a specific delivery order period. To understand historical patterns, one would need to examine previous contracts, delivery orders, and modifications related to these specific spares over several fiscal years. This would reveal whether spending has been consistent, increasing, or decreasing, and whether this $17.2 million award represents a typical or anomalous level of investment for this component category.
What are the specific technical requirements that necessitate a sole-source award to The Boeing Company?
The justification for a sole-source award typically stems from unique technical requirements, proprietary technology, or specialized manufacturing capabilities that only one contractor possesses. For SDB I BRU SPARES, Boeing, as the original manufacturer or a key integrator of the SDB system, likely holds the necessary technical data, tooling, and expertise. This could include specific material compositions, precise manufacturing tolerances, or integration knowledge critical for the BRU's function and compatibility with the SDB I and the host aircraft. Without these specific technical details, it's presumed that Boeing is the only entity capable of meeting the stringent performance and safety standards required.
How does the $17.2 million contract value compare to the overall budget for SDB I sustainment?
Determining how the $17.2 million contract value compares to the overall budget for SDB I sustainment requires access to the broader budgetary allocations for the SDB I program. This figure represents a specific procurement of spare parts for the Bomb Rack Unit (BRU). The total sustainment budget would encompass a wider range of costs, including maintenance, repair, upgrades, training, and other spare parts. This $17.2 million could represent a significant portion of the BRU-specific spares budget, or a smaller component of the overall sustainment funding, depending on the program's total financial picture.
What are the potential risks associated with a sole-source contract for critical defense components like these spares?
Sole-source contracts for critical defense components carry several risks. Primarily, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, potentially increasing costs for taxpayers. There's also a risk of reduced innovation and efficiency, as the sole provider may face less pressure to improve processes or offer cost-saving alternatives. Furthermore, reliance on a single supplier can create supply chain vulnerabilities; if the contractor experiences production issues, delays, or financial instability, it could directly impact the availability of critical spares and, consequently, the operational readiness of the defense system.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
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: $17,208,290
Exercised Options: $17,208,290
Current Obligation: $17,208,290
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA868119D0009
IDV Type: IDC
Timeline
Start Date: 2025-09-30
Current End Date: 2028-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2025-10-01
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