Navy Awards $18.86M for Harpoon/SLAM-ER Missiles to Boeing, Raising Competition Concerns
Contract Overview
Contract Amount: $18,857,788 ($18.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2024-02-08
End Date: 2026-02-28
Contract Duration: 751 days
Daily Burn Rate: $25.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HARPOON/SLAM-ER MISSILE
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $18.9 million to THE BOEING COMPANY for work described as: HARPOON/SLAM-ER MISSILE Key points: 1. Significant contract value for advanced missile systems. 2. Sole reliance on Boeing for these critical defense assets. 3. Potential for price escalation due to limited competition. 4. Direct impact on the aerospace and defense manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $18.86M for Harpoon/SLAM-ER missiles appears high given the lack of competitive bidding. Benchmarking against similar sole-source or limited-competition missile procurements would be necessary to definitively assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential missile systems, as there is no market pressure to drive down costs.
Public Impact
Ensures continued availability of critical air-to-surface missile capabilities for the Navy. Supports advanced aerospace manufacturing jobs within the awarded company. Potential for future sustainment and upgrade contracts, impacting long-term defense readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole source award
- Potential for cost overruns
Positive Signals
- Ensures critical defense capability
- Supports established supplier
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on missile systems. Spending benchmarks in this area are highly variable, but consistent sole-source awards can inflate sector-wide costs.
Small Business Impact
The contract was awarded to The Boeing Company, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct SMB participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost creep. Robust justification for the lack of competition should be maintained and reviewed.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for price inflation
- Limited transparency on justification
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.9 million to THE BOEING COMPANY. HARPOON/SLAM-ER MISSILE
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 $18.9 million.
What is the period of performance?
Start: 2024-02-08. End: 2026-02-28.
What is the justification for not competing this contract, and what steps are being taken to ensure fair pricing?
The justification for not competing this contract is not provided in the data. To ensure fair pricing, the Department of the Navy should conduct a thorough cost analysis, potentially using historical data or independent cost estimates. Regular reviews of performance and cost trends are also crucial to identify any deviations from expected pricing.
What are the long-term risks associated with relying on a single supplier for these critical missile systems?
Long-term risks include potential supply chain disruptions if the sole supplier faces production issues, limited innovation due to lack of competitive pressure, and increased vulnerability to price hikes. Dependence on one supplier can also reduce negotiating leverage for future procurements and upgrades, potentially impacting overall defense readiness and cost-effectiveness.
How does this sole-source award impact the overall effectiveness and readiness of the Navy's air-to-surface missile capabilities?
While ensuring the immediate availability of Harpoon/SLAM-ER missiles, the sole-source award may indirectly impact long-term effectiveness. Without competitive R&D, the systems might not benefit from the latest technological advancements as quickly. Furthermore, if the sole supplier experiences production delays or quality issues, it could create readiness gaps.
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
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: $19,431,609
Exercised Options: $18,857,788
Current Obligation: $18,857,788
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $30,000
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: 2024-02-08
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2025-09-23
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