DoD Awards Boeing $65.9M for Harpoon Missile Production, Boosting Defense Capabilities
Contract Overview
Contract Amount: $65,938,114 ($65.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2010-07-29
End Date: 2011-11-30
Contract Duration: 489 days
Daily Burn Rate: $134.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HARPOON LOT 85 PRODUCTION
Place of Performance
Location: SAINT LOUIS, ST. LOUIS (CITY) County, MISSOURI, 63166
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $65.9 million to THE BOEING COMPANY for work described as: HARPOON LOT 85 PRODUCTION Key points: 1. Significant contract awarded to a major defense contractor, Boeing. 2. Focus on guided missile manufacturing highlights critical defense sector spending. 3. Potential for cost overruns or schedule delays exists in complex defense production. 4. Spending aligns with national defense priorities, impacting the aerospace and defense sector.
Value Assessment
Rating: good
The contract value of $65.9 million for 1 unit appears reasonable given the complexity of guided missile systems. Benchmarking against similar production runs for advanced weaponry would provide a more precise assessment.
Cost Per Unit: $65,938,114
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that should drive favorable pricing. The fixed-price nature of the contract further aids in price discovery and limits the government's exposure to cost increases.
Taxpayer Impact: Taxpayer funds are being utilized for essential defense procurement, ensuring national security capabilities are maintained and advanced.
Public Impact
Enhances U.S. Navy's offensive and defensive capabilities with advanced missile technology. Supports high-tech manufacturing jobs within the aerospace and defense industry. Contributes to the strategic deterrence posture of the United States.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in future contract modifications.
- Reliance on a single contractor for critical component manufacturing.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract structure.
- Supports critical national defense mission.
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sub-sector, a critical component of the broader aerospace and defense industry. Spending in this area is often characterized by high R&D costs, long production cycles, and significant government oversight.
Small Business Impact
While the prime contractor is Boeing, a large corporation, the contract details do not specify subcontracting opportunities for small businesses. Further investigation into the subcontracting plan would be necessary to assess small business participation.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. Given the nature of defense procurement, robust oversight mechanisms are expected to be in place to ensure contract compliance and performance.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns in future contract modifications.
- Reliance on specific manufacturing facilities.
- Long-term sustainment and upgrade costs not detailed.
- Vulnerability to supply chain disruptions.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, mo, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $65.9 million to THE BOEING COMPANY. HARPOON LOT 85 PRODUCTION
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 $65.9 million.
What is the period of performance?
Start: 2010-07-29. End: 2011-11-30.
What is the projected lifespan and operational effectiveness of the Harpoon missiles produced under this contract?
The operational effectiveness and lifespan of the Harpoon missiles depend on various factors including technological obsolescence, maintenance schedules, and the specific mission profiles they are intended for. While this contract focuses on production, the Navy's long-term sustainment and upgrade plans are crucial for maximizing the value and effectiveness of these assets over their intended service life.
Are there any identified risks associated with the supply chain for critical components required for Harpoon missile production?
Defense supply chains, particularly for advanced weaponry, can be vulnerable to geopolitical instability, raw material shortages, and sole-source dependencies. A thorough risk assessment by the Department of the Navy would likely include evaluating the resilience of the Harpoon supply chain, identifying potential bottlenecks, and developing mitigation strategies to ensure uninterrupted production.
How does the unit cost of these Harpoon missiles compare to similar missile systems procured by other allied nations?
Direct cost comparisons can be complex due to variations in system capabilities, technology integration, and procurement volumes. However, benchmarking against international procurements of comparable anti-ship or land-attack missile systems would provide valuable insights into the cost-effectiveness of this specific Harpoon production lot. Such analysis helps ensure taxpayer funds are used efficiently.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001909R0273
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $65,938,114
Exercised Options: $65,938,114
Current Obligation: $65,938,114
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2010-07-29
Current End Date: 2011-11-30
Potential End Date: 2011-11-30 00:00:00
Last Modified: 2012-02-24
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