Boeing awarded $21M for HARPOON/SLAM-ER missiles, a sole-source contract for aircraft manufacturing
Contract Overview
Contract Amount: $21,058,847 ($21.1M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2017-12-15
End Date: 2020-02-28
Contract Duration: 805 days
Daily Burn Rate: $26.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HARPOON/SLAM-ER MISSILES
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $21.1 million to THE BOEING COMPANY for work described as: HARPOON/SLAM-ER MISSILES Key points: 1. Contract awarded to a single supplier suggests potential for higher pricing due to lack of competition. 2. The firm fixed-price contract type shifts risk to the contractor, potentially impacting final cost. 3. Delivery order issued under an existing contract may indicate a need for continued supply. 4. The duration of the contract (805 days) suggests a significant period for delivery and potential performance. 5. The North American Industry Classification System (NAICS) code 336411 points to aircraft manufacturing, a specialized sector. 6. The contract's value is moderate within the context of defense procurement, but specific value-for-money requires further benchmarking.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific details on the missiles procured and their technical specifications. However, the absence of competition typically leads to less favorable pricing for the government. Comparing this to other sole-source awards for similar defense articles would be necessary to assess if the $21 million represents a fair price. The firm fixed-price nature provides cost certainty but doesn't inherently guarantee value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This means only one bidder, The Boeing Company, was considered. Sole-source awards often occur when a specific capability or technology is only available from a single provider, or for follow-on work to an existing system. The lack of competition limits price discovery and may result in higher costs for the government compared to a fully competed procurement.
Taxpayer Impact: Taxpayers may be paying a premium for this procurement due to the absence of competitive bidding. Without multiple offers, there is less pressure on the contractor to offer the lowest possible price.
Public Impact
The primary beneficiaries are the Department of Defense, which receives critical missile systems for its aviation platforms. The services delivered include the manufacturing and supply of HARPOON/SLAM-ER missiles, essential for air-to-surface and anti-ship warfare. The geographic impact is primarily within the United States, where the missiles will be manufactured and potentially deployed. Workforce implications include employment within The Boeing Company's manufacturing facilities, supporting skilled labor in the aerospace sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
- Lack of transparency in the justification for sole-sourcing requires further scrutiny.
- Firm fixed-price contract, while providing cost certainty, does not guarantee optimal value for money without competition.
Positive Signals
- The Boeing Company is a major defense contractor with established expertise in missile systems.
- Firm fixed-price contract shifts cost overrun risk to the contractor.
- Delivery order under an existing contract may indicate a streamlined process for essential supplies.
Sector Analysis
The defense sector, particularly the segment focused on missile manufacturing, is characterized by high barriers to entry, significant R&D investment, and long product development cycles. Companies like The Boeing Company operate in a market where technological sophistication and established relationships with government agencies are crucial. Spending in this area is driven by national security requirements and geopolitical factors. Comparable spending benchmarks would involve analyzing other sole-source or competed awards for similar advanced missile systems.
Small Business Impact
This contract does not appear to involve a small business set-aside, as it was awarded to The Boeing Company, a large aerospace manufacturer. There is no explicit information regarding subcontracting opportunities for small businesses within this specific award. The focus on a large prime contractor suggests that the primary economic impact will be within large aerospace supply chains, rather than directly benefiting the small business ecosystem through set-aside provisions.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. The Defense Contract Management Agency (DCMA) likely plays a role in monitoring performance and compliance. Transparency regarding the justification for the sole-source award is crucial for accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Air-to-Surface Missiles
- Anti-Ship Missiles
- Defense Procurement
- Aerospace Manufacturing
- Weapon Systems
Risk Flags
- Sole-source award may indicate limited competition and potentially higher costs.
- Lack of detailed justification for sole-sourcing requires further investigation.
- Firm fixed-price contract does not inherently guarantee best value without competitive pressure.
Tags
defense, department-of-defense, missiles, aircraft-manufacturing, the-boeing-company, sole-source, firm-fixed-price, delivery-order, missouri, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.1 million to THE BOEING COMPANY. HARPOON/SLAM-ER MISSILES
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $21.1 million.
What is the period of performance?
Start: 2017-12-15. End: 2020-02-28.
What is the specific justification for awarding this contract on a sole-source basis to The Boeing Company?
The provided data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. The specific justification for this sole-sourcing is not detailed in the provided data. Typically, sole-source awards are justified when only one responsible source is available, or when there is a compelling urgency, or for follow-on work to an existing system where another source cannot meet requirements. For advanced defense systems like the HARPOON/SLAM-ER missiles, justifications often relate to unique technical capabilities, proprietary technology, or the need for interoperability with existing platforms that only the original manufacturer can provide. A thorough review of the contract file and the Justification and Approval (J&A) document would be required to ascertain the precise reasons.
How does the $21 million award compare to historical spending on HARPOON/SLAM-ER missiles?
The provided data shows a single award of $21,058,847.21 for HARPOON/SLAM-ER missiles between December 15, 2017, and February 28, 2020. To compare this to historical spending, one would need access to broader contract databases or historical procurement records for these specific missile systems. This would involve identifying previous contracts awarded to The Boeing Company or other manufacturers for the same or similar missile variants, noting their award amounts, contract types, and durations. Such a comparison would help determine if this award represents an increase, decrease, or stable level of spending for these assets over time, and whether the pricing is consistent with past trends.
What are the key performance indicators (KPIs) or metrics used to assess the success of this contract?
The provided data does not explicitly list the Key Performance Indicators (KPIs) or metrics used to assess the success of this contract. However, for a contract involving the manufacturing of defense articles like missiles, typical performance metrics would likely include: on-time delivery rates, adherence to quality standards (e.g., defect rates, reliability), meeting technical specifications and performance requirements, and potentially cost control within the firm fixed-price framework. The Department of Defense and the Defense Contract Management Agency (DCMA) would establish these metrics and monitor contractor performance against them throughout the contract period. Post-delivery operational performance of the missiles would also indirectly reflect the success of the manufacturing contract.
What is the risk profile associated with The Boeing Company as a contractor for this type of defense system?
The Boeing Company is a large, established defense contractor with extensive experience in manufacturing complex aerospace and defense systems, including missiles. This generally suggests a lower risk profile in terms of technical capability and production capacity. However, risks can still exist. These might include potential production delays, quality control issues, or cost overruns if the firm fixed-price contract does not adequately account for unforeseen challenges. Given their long history, their track record on similar contracts, including any past performance issues or successful deliveries, would be a key factor in a comprehensive risk assessment. The sole-source nature of this award also introduces a risk of complacency or less aggressive cost management compared to a competitive environment.
Are there any known issues or controversies related to the HARPOON/SLAM-ER missile program that might impact this contract?
Information regarding specific controversies or widespread issues directly impacting the HARPOON/SLAM-ER missile program in relation to this particular contract award is not present in the provided data. However, like many complex defense systems, these missiles may have faced developmental challenges, operational limitations, or budget scrutiny in the past. Publicly available information, defense news outlets, and Government Accountability Office (GAO) reports would be the primary sources to identify any significant, ongoing issues. Without such external context, it's assumed the contract was awarded based on the perceived necessity and capability of the system, and the contractor's ability to deliver.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001916R0001
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: $21,058,847
Exercised Options: $21,058,847
Current Obligation: $21,058,847
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001916G0001
IDV Type: BOA
Timeline
Start Date: 2017-12-15
Current End Date: 2020-02-28
Potential End Date: 2020-02-28 00:00:00
Last Modified: 2024-12-11
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