DoD Awards Boeing $120.9M for HARPOON Lot 86 Missile Production

Contract Overview

Contract Amount: $120,901,791 ($120.9M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2011-07-07

End Date: 2012-12-31

Contract Duration: 543 days

Daily Burn Rate: $222.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: HARPOON LOT 86 PRODUCTION

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63166

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $120.9 million to THE BOEING COMPANY for work described as: HARPOON LOT 86 PRODUCTION Key points: 1. Significant contract awarded to a single, established defense contractor. 2. Focus on guided missile production, a critical defense capability. 3. Potential for cost efficiencies through firm fixed-price contract. 4. Limited direct small business participation indicated. 5. Contract duration of over 500 days suggests a substantial production run.

Value Assessment

Rating: good

The contract value of $120.9 million for missile production appears reasonable given the nature of defense procurement. Benchmarking against similar missile system contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is intended to ensure fair pricing and access for qualified vendors.

Taxpayer Impact: Competition in this award aims to secure the best value for taxpayer funds in acquiring essential defense assets.

Public Impact

Ensures continued availability of a key offensive missile system for naval forces. Supports jobs and economic activity within the aerospace and defense sector. Contributes to national security by maintaining strategic defense capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Reliance on a single large contractor.
  • Potential for cost overruns if initial estimates are inaccurate.
  • Long-term sustainment and upgrade costs not detailed.

Positive Signals

  • Firm fixed-price contract provides cost certainty.
  • Awarded through full and open competition.
  • Production of a critical defense asset.

Sector Analysis

This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a specialized area of defense industrial base. Spending in this sector is driven by national security requirements and technological advancements.

Small Business Impact

The data indicates that small business participation was not a primary factor in this specific contract award. Future contracts may offer opportunities for subcontracting to small businesses.

Oversight & Accountability

The Department of the Navy is responsible for overseeing this contract. Standard procurement oversight processes are expected to be in place to monitor performance and costs.

Related Government Programs

  • Guided Missile and Space Vehicle Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Sole source supplier dependency.
  • Potential for cost escalation.
  • Long-term sustainment costs.
  • Supply chain vulnerabilities.

Tags

guided-missile-and-space-vehicle-manufac, department-of-defense, mo, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $120.9 million to THE BOEING COMPANY. HARPOON LOT 86 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 $120.9 million.

What is the period of performance?

Start: 2011-07-07. End: 2012-12-31.

What is the historical cost performance of HARPOON missile production contracts awarded to The Boeing Company?

Analyzing historical cost performance on similar HARPOON missile production contracts with The Boeing Company is crucial. This would reveal trends in cost overruns or savings, providing insight into the reliability of their cost estimates and production efficiency. Such data would inform whether the current $120.9 million award is consistent with past performance or represents a deviation.

What are the specific performance metrics and delivery schedules associated with this contract?

Understanding the specific performance metrics and delivery schedules is vital for assessing contract effectiveness. This includes details on the number of missiles to be produced, quality standards, testing requirements, and the timeline for delivery. Adherence to these parameters will determine if the contract meets the Navy's operational needs and timelines efficiently.

Are there any identified risks related to the supply chain or technological obsolescence for the HARPOON missile system?

Assessing risks related to the HARPOON missile system's supply chain and potential technological obsolescence is important. Dependence on specific suppliers or outdated components could lead to production delays or increased costs. Proactive risk mitigation strategies, such as identifying alternative suppliers or planning for technology refreshes, are essential for long-term program viability.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingGuided 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: N0001910R0103

Offers Received: 1

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $120,901,791

Exercised Options: $120,901,791

Current Obligation: $120,901,791

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2011-07-07

Current End Date: 2012-12-31

Potential End Date: 2012-12-31 00:00:00

Last Modified: 2019-07-22

More Contracts from THE Boeing Company

View all THE Boeing Company federal contracts →

Other Department of Defense Contracts

View all Department of Defense contracts →

Explore Related Government Spending