DoD Awards $13M for Airframe Components, Lacking Competition

Contract Overview

Contract Amount: $13,082,436 ($13.1M)

Contractor: Mcdonnell Douglas Helicopter Company

Awarding Agency: Department of Defense

Start Date: 2004-09-28

End Date: 2007-01-31

Contract Duration: 855 days

Daily Burn Rate: $15.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200412!004967!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!DAAH2301G0024 !A!N! !N!0084 ! !20040928!20050929!047800297!006265946!009256819!N!MCDONNELL DOUGLAS HELICOPTER C!5000 E MCDOWELL ROAD !MESA !AZ!85215!46000!013!04!MESA !MARICOPA !ARIZONA !+000010280917!N!N!000000000000!1560!AIRFRAME STRUCTURAL COMPONENTS !A1A!AIRFRAMES AND SPARES !000 !* !332912!E! !4! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1A!Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: MESA, MARICOPA County, ARIZONA, 85215

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to MCDONNELL DOUGLAS HELICOPTER COMPANY for work described as: 200412!004967!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!DAAH2301G0024 !A!N! !N!0084 ! !20040928!20050929!047800297!006265946!009256819!N!MCDONNELL DOUGLAS HELICOPTER C!5000 E MCDOWELL ROAD !MESA !AZ!85215!46000!013!04!MESA !MARI… Key points: 1. Significant contract value of $13.08 million for critical airframe components. 2. Sole-source award to McDonnell Douglas Helicopter Company raises competition concerns. 3. Contract duration of 855 days suggests a substantial, ongoing need. 4. Spending concentrated in Arizona, potentially impacting local economies. 5. Focus on airframe parts highlights importance for aviation readiness.

Value Assessment

Rating: questionable

The contract value of $13.08 million for airframe structural components appears high given the lack of competitive bidding. Benchmarking against similar sole-source contracts for specialized aviation parts would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method limits price discovery and may result in higher costs for the government.

Taxpayer Impact: The absence of competition could lead to taxpayers paying a premium for these essential airframe components.

Public Impact

Ensures continued availability of critical airframe parts for military aircraft. Potential for increased costs due to sole-source award impacts defense budget. Supports a specific aerospace manufacturer, potentially influencing market dynamics. Geographic concentration of spending in Arizona.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Long contract duration without competition.
Lack of detailed justification for sole-source procurement.

Positive Signals

Addresses a critical need for aviation components.
Supports a known defense contractor.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically for airframe structural components. Spending in this area is crucial for maintaining military aviation capabilities. Benchmarks for similar sole-source contracts are difficult to establish without more data.

Small Business Impact

The awardee, McDonnell Douglas Helicopter Company, is a large aerospace firm. There is no indication that small businesses were involved in this specific sole-source contract, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Further investigation into the justification for not pursuing a competitive process is recommended to ensure accountability and responsible use of funds.

Related Government Programs

Fluid Power Valve and Hose Fitting Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency in procurement justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to MCDONNELL DOUGLAS HELICOPTER COMPANY. 200412!004967!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!DAAH2301G0024 !A!N! !N!0084 ! !20040928!20050929!047800297!006265946!009256819!N!MCDONNELL DOUGLAS HELICOPTER C!5000 E MCDOWELL ROAD !MESA !AZ!85215!46000!013!04!MESA !MARICOPA !ARIZONA !+000010280917!N!N!000000000000!1560!AIRFRAME STRUCTURAL COMPONENTS !A1A!AIRFRAMES AND SPARES !000 !* !332912!E! !4! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is MCDONNELL DOUGLAS HELICOPTER COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $13.1 million.

What is the period of performance?

Start: 2004-09-28. End: 2007-01-31.

What was the specific justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The provided data indicates the contract was 'NOT COMPETED'. A comprehensive review would require access to the contract file, which should contain the justification for sole-source procurement. This typically involves reasons such as unique capabilities, urgent needs, or lack of available sources.

How does the unit cost of these airframe structural components compare to similar parts procured competitively?

Without specific unit cost data and benchmarks for comparable competitively procured airframe structural components, a direct comparison is not possible. The sole-source nature of this award suggests potential for higher costs than if competition had been utilized.

What is the long-term strategic impact of relying on sole-source contracts for critical aviation components?

Sole-source contracts can create dependency on a single supplier, potentially leading to price escalation and reduced innovation over time. While sometimes necessary for unique or urgent requirements, a consistent reliance can hinder the development of a robust and competitive industrial base.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Fluid Power Valve and Hose Fitting Manufacturing

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

Parent Company: THE Boeing Company (UEI: 009256819)

Address: 5000 E MCDOWELL RD, MESA, AZ, 04

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAH2301G0024

IDV Type: IDC

Timeline