Boeing awarded $39.8M for Harpoon missile kits, highlighting guided missile manufacturing sector

Contract Overview

Contract Amount: $39,876,676 ($39.9M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2008-01-30

End Date: 2011-08-31

Contract Duration: 1,309 days

Daily Burn Rate: $30.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Defense

Official Description: HARPOON BLOCK III MISSILE KIT

Place of Performance

Location: SAINT LOUIS, ST. LOUIS (CITY) County, MISSOURI, 63166

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $39.9 million to THE BOEING COMPANY for work described as: HARPOON BLOCK III MISSILE KIT Key points: 1. Contract value of $39.8M for missile kits suggests significant investment in defense capabilities. 2. Sole awardee indicates potential for limited competition or specialized manufacturing expertise. 3. Contract duration of 1309 days points to a complex, long-term production or integration effort. 4. Awarded by the Department of the Navy, this contract supports naval air defense systems. 5. The 'Harpoon Block III Missile Kit' designation implies an upgrade or specific variant of a known weapon system. 6. The contract falls under Guided Missile and Space Vehicle Manufacturing, a critical defense sub-sector.

Value Assessment

Rating: fair

Benchmarking the value of this specific missile kit contract is challenging without detailed technical specifications and quantity information. However, the total award amount of $39.8 million for a complex defense system like the Harpoon missile suggests a substantial investment. Comparisons to similar missile system procurements would be necessary to assess if the per-unit cost or overall value is competitive. The absence of readily available cost breakdowns makes a definitive value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the award to a single entity, The Boeing Company, suggests that Boeing was the most advantageous bidder based on technical merit, price, or other evaluation factors. The level of competition, while open, resulted in a single award, which could imply specialized capabilities required for this specific missile kit.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process. Even with a single award, the initial competitive solicitation process should have driven down prices compared to a sole-source procurement.

Public Impact

The U.S. Navy benefits from enhanced missile capabilities for its fleet. This contract supports the production and delivery of advanced missile kits. The geographic impact is primarily centered around The Boeing Company's manufacturing facilities in Missouri. The contract likely supports a specialized workforce within the aerospace and defense manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdowns hinders precise value assessment.
Single award in a 'full and open' competition may warrant further investigation into bid responsiveness or technical requirements.
Long contract duration could introduce risks related to cost overruns or technological obsolescence if not managed effectively.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
The Boeing Company is a major defense contractor with a proven track record.
The contract supports a critical defense capability for the U.S. Navy.

Sector Analysis

The defense sector, particularly the guided missile and space vehicle manufacturing segment, is characterized by high technological complexity, significant R&D investment, and stringent quality control requirements. Contracts in this area often involve long lead times and substantial dollar values due to the nature of the products. The market is dominated by a few large prime contractors, with significant subcontracting to specialized suppliers. This contract for Harpoon missile kits fits within this landscape, representing a specific procurement within a broader strategic defense initiative.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). As a large prime contract awarded to The Boeing Company, there may be opportunities for small businesses to participate as subcontractors. However, the extent of small business subcontracting is not detailed in the provided data. The focus on a specialized defense system might limit the scope for broad small business involvement beyond specific component manufacturing.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures, including the Department of the Navy. Accountability measures are embedded in the contract terms, performance metrics, and payment schedules. Transparency is generally maintained through contract award databases and reporting requirements, though detailed cost and performance data may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) procurements
Air-to-Surface Missile Systems
Defense Logistics Agency (DLA) awards
Tactical Missile Programs
Aerospace Manufacturing Contracts

Risk Flags

Potential for cost overruns due to long contract duration.
Risk of technological obsolescence over the contract period.
Single award may warrant review of competition effectiveness.
Limited transparency on specific performance metrics and value benchmarks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.9 million to THE BOEING COMPANY. HARPOON BLOCK III MISSILE KIT

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 Navy).

What is the total obligated amount?

The obligated amount is $39.9 million.

What is the period of performance?

Start: 2008-01-30. End: 2011-08-31.

What is the historical spending trend for Harpoon missile kits or similar systems procured by the Department of Defense?

Analyzing historical spending on Harpoon missile kits requires access to detailed procurement data over multiple fiscal years. Generally, spending on such systems fluctuates based on strategic needs, fleet modernization programs, and geopolitical factors. The Department of Defense often procures these systems in tranches, with significant investments made during periods of heightened threat perception or when upgrading existing platforms. Without specific historical data for this exact item, it's difficult to pinpoint a precise trend. However, the defense budget allocation for missile systems has generally remained robust, reflecting their critical role in modern warfare. The $39.8 million awarded in 2008 for this specific contract would need to be compared against prior and subsequent awards to identify any upward or downward trends in unit cost or total procurement volume.

How does the awarded amount of $39.8 million compare to the estimated value or previous contract awards for Harpoon missile kits?

Direct comparison of the $39.8 million award to previous contracts for Harpoon missile kits is challenging without knowing the exact quantity of kits procured under this award and the specific block/variant. Missile systems are complex and their costs can vary significantly based on upgrades, technology insertion, and the number of units purchased. If this $39.8 million represents a significant quantity, it might indicate favorable pricing. Conversely, if it's for a small number of highly specialized kits, the per-unit cost could be substantial. Benchmarking requires comparing similar contract actions from the same period or adjusting for inflation and technological changes if comparing across different timeframes. The absence of unit cost data or quantity information in the provided snippet limits a precise comparative assessment.

What are the specific performance metrics or key performance parameters (KPPs) associated with the Harpoon Block III Missile Kit?

The provided data does not include specific Key Performance Parameters (KPPs) or detailed performance metrics for the Harpoon Block III Missile Kit. KPPs are typically defined in the contract's Statement of Work (SOW) and outline the essential capabilities the system must possess, such as range, accuracy, warhead effectiveness, guidance system precision, and environmental resilience. For a missile system like the Harpoon, KPPs would likely focus on target engagement success rates, operational readiness, reliability, and survivability in contested environments. These metrics are crucial for evaluating the system's effectiveness and ensuring it meets the warfighter's requirements. Further details would be found in official contract documentation and technical specifications.

What is The Boeing Company's track record in delivering complex missile systems, particularly the Harpoon family?

The Boeing Company has a long and established track record in the aerospace and defense industry, including extensive experience with missile systems. They are a primary contractor for numerous advanced weapon platforms. Regarding the Harpoon missile, Boeing has been involved in its development, production, and sustainment for decades. The Harpoon has undergone various upgrades and block changes throughout its service life, and Boeing has been instrumental in delivering these enhancements. Their history with the Harpoon program suggests a deep understanding of the system's complexities and a capability to meet production and performance requirements. However, like any large defense contractor, specific contract performance can vary, and a detailed review of past Harpoon-related contracts would provide a more granular assessment.

What are the potential risks associated with a long-duration contract (1309 days) for missile kit production?

Long-duration contracts for complex items like missile kits present several potential risks. Firstly, there's the risk of cost escalation due to inflation, material price volatility, or unforeseen production challenges over the extended period. Secondly, technological obsolescence is a concern; by the time the contract is completed, the technology might be outdated, or newer, more effective systems may have emerged. Thirdly, contractor performance can degrade over time, or key personnel might leave, impacting quality and delivery schedules. Finally, changes in government requirements or budget priorities mid-contract can lead to modifications, delays, or even termination, causing disruption and potential financial losses for both parties. Robust contract management, clear change control processes, and regular performance reviews are essential to mitigate these risks.

How does the 'Guided Missile and Space Vehicle Manufacturing' sector typically perform in terms of contract value and competition?

The Guided Missile and Space Vehicle Manufacturing sector is a high-value, technology-intensive segment of the defense industry. Contracts within this sector are typically characterized by large dollar values, long lead times, and significant research and development components. Competition can be intense during the initial R&D and system design phases, often involving multiple bidders vying for prime contractor status. However, once a system is selected and enters full-rate production, competition may decrease, leading to fewer bidders or sole-source awards for specific components or sustainment, especially if the technology is proprietary or requires specialized manufacturing capabilities. The sector is dominated by a few major defense contractors, making it a concentrated market.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001907R0059

Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE) (2)

Evaluated Preference: NONE

Contractor Details

Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $41,161,301

Exercised Options: $41,161,301

Current Obligation: $39,876,676

Contract Characteristics

Cost or Pricing Data: YES

Timeline