DoD Awards $55.2M for Joint Direct Attack Munitions to Boeing, Lacking Competition
Contract Overview
Contract Amount: $55,201,594 ($55.2M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2015-12-15
End Date: 2018-09-30
Contract Duration: 1,020 days
Daily Burn Rate: $54.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JOINT DIRECT ATTACK MUNITIONS LOT 19 DECENTRALIZED FOREIGN MILITARY SALES ORDER
Place of Performance
Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $55.2 million to THE BOEING COMPANY for work described as: JOINT DIRECT ATTACK MUNITIONS LOT 19 DECENTRALIZED FOREIGN MILITARY SALES ORDER Key points: 1. Significant award to a single large contractor, Boeing. 2. Lack of competition raises concerns about price discovery. 3. Ammunition manufacturing sector, with potential for sole-source awards. 4. Foreign Military Sales (FMS) context may influence procurement approach.
Value Assessment
Rating: fair
The award value of $55.2M is substantial. Without competitive bids, it's difficult to assess if this price is optimal. Benchmarking against similar FMS ammunition contracts would be necessary for a thorough valuation.
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 can lead to higher prices due to the absence of market pressure and potentially less innovative solutions.
Taxpayer Impact: The lack of competition may result in taxpayers bearing a higher cost for these munitions, especially if the pricing is not rigorously scrutinized.
Public Impact
Ensures supply of critical munitions for allied nations through FMS. Supports a key defense contractor, Boeing, and its manufacturing capabilities. Potential for increased costs to foreign partners and U.S. taxpayers if not competitively priced.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for overpricing
Positive Signals
- Supports FMS objectives
- Provides critical defense capability
Sector Analysis
This contract falls within the Ammunition (except Small Arms) Manufacturing sector. Spending in this area is critical for national defense and supporting allies. Benchmarks are difficult without competitive data, but large sole-source awards warrant scrutiny.
Small Business Impact
The data indicates this award went to The Boeing Company, a large prime contractor. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
The non-competitive nature of this award suggests a need for robust oversight to ensure fair pricing and value for money, particularly given the FMS context.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for price inflation
- Limited transparency on justification
- No small business participation noted
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.2 million to THE BOEING COMPANY. JOINT DIRECT ATTACK MUNITIONS LOT 19 DECENTRALIZED FOREIGN MILITARY SALES ORDER
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 Air Force).
What is the total obligated amount?
The obligated amount is $55.2 million.
What is the period of performance?
Start: 2015-12-15. End: 2018-09-30.
What specific justification was provided for awarding this contract on a sole-source basis, and how does it align with DoD's policies on competition?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. For this JDAM contract, the specific rationale needs to be examined against DoD's Federal Acquisition Regulation (FAR) Part 6, which outlines policies for contracting without full and open competition. Understanding this justification is key to assessing the necessity of bypassing competitive processes and its potential impact on cost.
How does the unit cost of these Joint Direct Attack Munitions compare to similar munitions procured competitively, either domestically or by allied nations?
A direct comparison of unit costs is crucial for assessing value. Without competitive data for this specific award, benchmarking against historically competitive procurements of similar JDAM variants or comparable munitions by other nations is essential. Significant deviations from established price ranges could indicate potential overpricing due to the lack of competition.
What is the long-term strategic impact of relying on sole-source contracts for critical munitions like JDAMs, particularly concerning supply chain resilience and technological advancement?
Sole-source contracts can create dependencies on a single supplier, potentially impacting supply chain resilience if that supplier faces disruptions. Furthermore, the absence of competitive pressure might disincentivize innovation and technological upgrades in munitions manufacturing. A balanced approach, incorporating competition where feasible, is generally preferred for fostering a dynamic and secure defense industrial base.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $55,201,594
Exercised Options: $55,201,594
Current Obligation: $55,201,594
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA821315D0002
IDV Type: IDC
Timeline
Start Date: 2015-12-15
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 00:00:00
Last Modified: 2018-09-27
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