DoD Awards $150M F-18 Hornet Airframe Contract to McDonnell Douglas

Contract Overview

Contract Amount: $18,267,588 ($18.3M)

Contractor: Mcdonnell Douglas Corporation

Awarding Agency: Department of Defense

Start Date: 2002-11-15

End Date: 2010-08-19

Contract Duration: 2,834 days

Daily Burn Rate: $6.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200304!006701!1700!AA4M0 !NAVAL AIR SYSTEMS COMMAND !N0001998G0037 !A!N! !N!0033 !20021115!20021115!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000021306023!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !2AFX!F-18 HORNET !488190!E! !4! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1G!Z!Y!A! ! !N!C!N! ! ! !B!B!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $18.3 million to MCDONNELL DOUGLAS CORPORATION for work described as: 200304!006701!1700!AA4M0 !NAVAL AIR SYSTEMS COMMAND !N0001998G0037 !A!N! !N!0033 !20021115!20021115!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. L… Key points: 1. Significant award for F-18 Hornet airframes and spares. 2. Contractor is a major defense manufacturer. 3. Risk of sole-source award impacting price. 4. Defense sector spending on aircraft components.

Value Assessment

Rating: fair

The contract value of $149,879,157 appears substantial for airframes and spares. Benchmarking against similar F-18 component contracts would be necessary to assess pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these critical aircraft components.

Public Impact

Ensures continued supply of F-18 Hornet airframes for military operations. Supports jobs at McDonnell Douglas and its supply chain. Potential for cost overruns due to sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition
Long contract duration

Positive Signals

Essential for F-18 program continuity
Supports a key defense contractor

Sector Analysis

This contract falls within the aerospace and defense sector, specifically for aircraft components. Spending in this area is driven by military readiness and modernization needs.

Small Business Impact

Analysis of small business participation is not available from the provided data. The prime contractor is a large corporation, suggesting potential subcontracting opportunities.

Oversight & Accountability

The contract was awarded by the Naval Air Systems Command. Oversight would focus on contract performance, delivery schedules, and cost control, especially given the sole-source nature.

Related Government Programs

Other Support Activities for Air Transportation
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits price competition.
Potential for cost overruns.
Long contract duration (2002-2010) may not reflect current market prices.
Lack of transparency on justification for sole-sourcing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.3 million to MCDONNELL DOUGLAS CORPORATION. 200304!006701!1700!AA4M0 !NAVAL AIR SYSTEMS COMMAND !N0001998G0037 !A!N! !N!0033 !20021115!20021115!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000021306023!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !2AFX!F-18 HORNET !488190!E! !4! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is MCDONNELL DOUGLAS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $18.3 million.

What is the period of performance?

Start: 2002-11-15. End: 2010-08-19.

What was the justification for awarding this contract sole-source?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternative sources. Without specific documentation, it's difficult to ascertain the precise reason, but it likely relates to specialized production knowledge or existing integration with the F-18 platform.

What is the potential cost impact of this sole-source award?

Sole-source contracts often carry a higher cost risk due to the absence of competitive pressure. The government may pay more than if multiple bidders had vied for the contract. A thorough cost analysis and negotiation would be crucial to mitigate this risk.

How does this contract contribute to the overall effectiveness of the F-18 program?

By securing a large supply of airframes and spares, this contract directly supports the operational readiness and sustainment of the F-18 fleet. It ensures that these critical aircraft can be maintained and repaired, contributing to the Navy's air combat capabilities.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: P.O. BOX 516, SAINT LOUIS, MO, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001998G0037

IDV Type: IDC

Timeline