Navy's $5.5M Harpoon/SLAM-ER Maintenance Contract Awarded to Boeing Without Competition
Contract Overview
Contract Amount: $5,490,565 ($5.5M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2021-09-09
End Date: 2024-06-30
Contract Duration: 1,025 days
Daily Burn Rate: $5.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FY21/22 HARPOON AND SLAM-ER DEPOT MAINTENANCE
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $5.5 million to THE BOEING COMPANY for work described as: FY21/22 HARPOON AND SLAM-ER DEPOT MAINTENANCE Key points: 1. Significant contract value for depot maintenance of critical missile systems. 2. Sole-source award to Boeing raises questions about competition and potential cost savings. 3. Long contract duration (over 3 years) requires careful monitoring for performance and cost. 4. Focus on aircraft engine and parts manufacturing highlights a specialized sector.
Value Assessment
Rating: questionable
The contract value of $5.5 million for depot maintenance appears reasonable given the specialized nature of the Harpoon and SLAM-ER missile systems. However, without competitive bidding, it's difficult to definitively assess if this represents the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to The Boeing Company. This limits price discovery and may prevent the government from obtaining potentially lower prices through competitive bidding.
Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers if alternative providers could offer the same services at a lower price.
Public Impact
Ensures continued operational readiness of critical naval strike capabilities. Supports specialized manufacturing jobs within the aerospace and defense sector. Potential for increased costs due to sole-source nature impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
Positive Signals
- Maintains critical weapon system readiness
- Supports established defense contractor
Sector Analysis
This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, a highly specialized area within defense. Benchmarks for depot maintenance of complex missile systems are often difficult to establish due to proprietary technology and limited providers.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if opportunities for small business subcontracting were explored or mandated.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and adequate performance. The Department of the Navy should document the justification for not competing this requirement.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpricing
- Limited transparency in pricing
- Reliance on a single contractor
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, mo, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.5 million to THE BOEING COMPANY. FY21/22 HARPOON AND SLAM-ER DEPOT MAINTENANCE
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 $5.5 million.
What is the period of performance?
Start: 2021-09-09. End: 2024-06-30.
What is the justification for awarding this depot maintenance contract on a sole-source basis?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of other qualified sources. For complex systems like the Harpoon and SLAM-ER, the original equipment manufacturer, Boeing, often possesses the specialized knowledge and tooling required for depot-level maintenance, making competition challenging.
What is the potential cost impact of this sole-source award compared to a competitive process?
Sole-source awards generally carry a higher risk of inflated costs compared to competitive procurements. Without the pressure of competing bids, the contractor may not be incentivized to offer the lowest possible price. The government may pay a premium for the convenience and perceived necessity of awarding to a single provider.
How will the Navy ensure effective performance and cost control over the 1025-day contract duration?
The Navy can ensure effective performance and cost control through robust contract management, including regular performance reviews, milestone tracking, and adherence to the firm-fixed-price structure. Establishing clear performance metrics and exercising options judiciously, while also seeking opportunities for future competition, are key strategies.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001921R0701
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JAMES S 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: $5,490,565
Exercised Options: $5,490,565
Current Obligation: $5,490,565
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001921G0006
IDV Type: BOA
Timeline
Start Date: 2021-09-09
Current End Date: 2024-06-30
Potential End Date: 2024-06-30 00:00:00
Last Modified: 2026-01-12
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