DoD Awards Boeing $96M for DSU-38A/B Precision Laser Guidance Sets Through Sole-Source Contract
Contract Overview
Contract Amount: $95,952,548 ($96.0M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2022-07-28
End Date: 2025-02-28
Contract Duration: 946 days
Daily Burn Rate: $101.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DSU-38A/B PRECISION LASER GUIDANCE SET
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $96.0 million to THE BOEING COMPANY for work described as: DSU-38A/B PRECISION LASER GUIDANCE SET Key points: 1. Significant contract value of $95.95M for specialized defense equipment. 2. Sole-source award to Boeing raises questions about competition and potential price inflation. 3. Contract duration extends to February 2025, indicating ongoing need. 4. The procurement falls under the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' sector.
Value Assessment
Rating: questionable
The contract's value of $95.95M for a specific guidance set needs comparison against similar systems. Without competitive bidding, it's difficult to ascertain if this price represents fair market value.
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 lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition in this sole-source award may result in taxpayers paying a premium for the DSU-38A/B Precision Laser Guidance Set.
Public Impact
Enhances precision targeting capabilities for military operations. Supports advanced weapon systems within the Department of Defense. Potential impact on readiness and effectiveness of deployed forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of price benchmark for unit cost.
- Long contract duration without competitive review.
Positive Signals
- Procures critical defense technology.
- Awarded to a major defense contractor with proven capabilities.
Sector Analysis
This procurement falls within the defense manufacturing sector, specifically focusing on ordnance and guidance systems. Benchmarks for similar precision guidance sets are often proprietary or difficult to obtain due to the specialized nature of defense contracting.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA). Oversight will focus on delivery, quality, and adherence to contract terms, though the sole-source nature limits price oversight effectiveness.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award may lead to inflated pricing.
- Lack of transparency in price determination.
- Potential for vendor lock-in.
- Limited opportunity for innovation from other suppliers.
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $96.0 million to THE BOEING COMPANY. DSU-38A/B PRECISION LASER GUIDANCE SET
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 $96.0 million.
What is the period of performance?
Start: 2022-07-28. End: 2025-02-28.
What is the justification for awarding this contract on a sole-source basis?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services, often due to unique capabilities, proprietary technology, or urgent needs. A thorough review of the justification documentation is necessary to understand the specific reasons behind this decision and ensure it was appropriate.
How does the unit cost compare to similar laser guidance systems from other manufacturers?
Without competitive bidding, establishing a reliable benchmark for the unit cost of the DSU-38A/B Precision Laser Guidance Set is challenging. A comparative analysis against publicly available data for similar systems, if any exist, would be needed, but direct comparisons are often difficult due to proprietary technology and specialized applications in defense.
What measures are in place to ensure the effectiveness and reliability of the guidance sets?
The Defense Contract Management Agency (DCMA) is responsible for oversight. Effectiveness and reliability are typically ensured through stringent quality assurance procedures, testing protocols, and performance metrics outlined in the contract. Compliance with these standards will be critical throughout the contract's duration.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001914R0044
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: $95,952,548
Exercised Options: $95,952,548
Current Obligation: $95,952,548
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $23,524,457
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001916D1002
IDV Type: IDC
Timeline
Start Date: 2022-07-28
Current End Date: 2025-02-28
Potential End Date: 2025-02-28 00:00:00
Last Modified: 2025-08-04
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