DoD Awards Boeing $93.3M for Harpoon Lot 88 Missile Production
Contract Overview
Contract Amount: $93,308,473 ($93.3M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2013-12-17
End Date: 2015-07-31
Contract Duration: 591 days
Daily Burn Rate: $157.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HARPOON LOT 88
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $93.3 million to THE BOEING COMPANY for work described as: HARPOON LOT 88 Key points: 1. Significant award to a single, established defense contractor. 2. Focus on guided missile manufacturing within the defense sector. 3. Potential for cost efficiencies through firm fixed-price contract. 4. Lack of competition raises questions about optimal pricing.
Value Assessment
Rating: fair
The contract value of $93.3 million for 591 days of performance is substantial. Without specific per-unit cost data or benchmarks for similar missile systems, a precise value assessment is difficult. However, the firm fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition scenario. This approach may be justified by specialized capabilities or existing production lines, but it limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in a higher price than if multiple vendors had bid, impacting taxpayer value.
Public Impact
Ensures continued availability of a key defense asset. Supports jobs within the aerospace and defense manufacturing sector. Highlights reliance on established prime contractors for critical systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
Positive Signals
- Firm fixed-price contract
- Established contractor
Sector Analysis
This award falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of national defense spending. Benchmarks for similar missile production contracts are often proprietary but typically involve significant R&D and manufacturing costs.
Small Business Impact
The data indicates no specific set-aside for small businesses. Large defense contracts like this often involve extensive subcontracting, which may provide opportunities for small businesses, but direct award analysis shows no SMB participation.
Oversight & Accountability
The award is a definitive contract from the Department of the Navy, suggesting established procurement processes. However, the lack of competition warrants scrutiny to ensure fair pricing and effective use of funds.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for higher costs due to lack of bidding.
- Need for robust justification for non-competitive procurement.
- Lack of transparency on per-unit cost benchmarks.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, mo, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $93.3 million to THE BOEING COMPANY. HARPOON LOT 88
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 $93.3 million.
What is the period of performance?
Start: 2013-12-17. End: 2015-07-31.
What is the historical cost performance of the Harpoon missile program under similar contract types?
Analyzing historical cost data for the Harpoon missile program, particularly under previous firm fixed-price contracts, would provide crucial insights. This would help determine if the current award reflects competitive pricing trends or potential cost overruns. Without this historical context, assessing the value proposition is challenging.
Are there any viable alternative missile systems or manufacturers that could have been considered?
Investigating alternative missile systems and manufacturers is essential to understand the justification for a sole-source award. If other capable suppliers exist, even with different technological approaches, the lack of competition raises concerns about market dynamics and potential price inflation. A thorough market analysis should precede such awards.
How does the per-unit cost of this Harpoon missile lot compare to industry benchmarks for similar weapon systems?
Benchmarking the per-unit cost against similar guided missile systems is vital for evaluating cost-effectiveness. While specific data is often classified, comparing to publicly available information on comparable systems, adjusted for complexity and features, can reveal potential overpricing. This comparison 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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001913R0030
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $93,308,473
Exercised Options: $93,308,473
Current Obligation: $93,308,473
Subaward Activity
Number of Subawards: 24
Total Subaward Amount: $4,315,597
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-12-17
Current End Date: 2015-07-31
Potential End Date: 2015-07-31 00:00:00
Last Modified: 2024-06-26
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