DoD awards $47.15M for UDLM (SOR BSS) Option IV to McDonnell Douglas Corp

Contract Overview

Contract Amount: $47,150,343 ($47.2M)

Contractor: Mcdonnell Douglas Corp

Awarding Agency: Department of Defense

Start Date: 2009-04-21

End Date: 2011-04-03

Contract Duration: 712 days

Daily Burn Rate: $66.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UDLM (SOR BSS) - OPTION IV

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78226

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $47.2 million to MCDONNELL DOUGLAS CORP for work described as: UDLM (SOR BSS) - OPTION IV Key points: 1. Contract awarded to a single, established vendor, raising questions about competition. 2. Significant contract value suggests potential for substantial taxpayer investment. 3. Lack of competition may limit price discovery and potentially inflate costs. 4. The 'Other Aircraft Parts' sector is critical for defense readiness.

Value Assessment

Rating: questionable

The contract value of $47.15M for a 712-day duration is difficult to assess without specific unit data. However, the lack of competition suggests potential for above-market pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method bypasses competitive bidding, potentially leading to higher prices and reduced value for taxpayer money.

Taxpayer Impact: The absence of competition means taxpayers may not be receiving the best possible price for these aircraft parts.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The defense sector relies on a steady supply of these parts for operational readiness. The long duration of the contract (712 days) locks in this pricing structure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Potential for overpayment

Positive Signals

Established vendor
Contract awarded

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the defense industrial base. Spending benchmarks for this specific niche are not readily available, but consistent funding is essential for maintaining aircraft.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.

Oversight & Accountability

The contract was awarded by the Defense Contract Management Agency, suggesting some level of oversight. However, the sole-source nature warrants close monitoring to ensure fair pricing and performance.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Sole-source award
Potential for price inflation
Limited transparency in pricing
No small business set-aside identified

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.2 million to MCDONNELL DOUGLAS CORP. UDLM (SOR BSS) - OPTION IV

Who is the contractor on this award?

The obligated recipient is MCDONNELL DOUGLAS CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $47.2 million.

What is the period of performance?

Start: 2009-04-21. End: 2011-04-03.

What is the estimated cost savings that could have been achieved through a competitive bidding process for this contract?

Quantifying exact savings without a competitive benchmark is challenging. However, sole-source contracts often result in higher prices compared to competed ones. Industry studies suggest savings of 10-30% are possible through competition, meaning taxpayers could have potentially saved between $4.7M and $14.1M on this $47.15M award.

What are the specific risks associated with awarding a sole-source contract for critical aircraft parts?

The primary risk is inflated pricing due to the absence of market competition, leading to inefficient use of taxpayer funds. Additionally, reliance on a single supplier can create supply chain vulnerabilities if that supplier faces production issues or financial instability. This also reduces the incentive for the contractor to innovate or improve efficiency.

How effective is the Defense Contract Management Agency in ensuring value for money on sole-source contracts like this one?

The effectiveness of DCMA in ensuring value on sole-source contracts depends on their ability to perform robust cost and price analysis, negotiate favorable terms, and monitor contractor performance diligently. While they have established processes, the inherent lack of competition limits their leverage, making thorough oversight crucial to mitigate potential overpricing and ensure contract objectives are met.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

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: 375 AIRLIFT DRIVE, SAN ANTONIO, TX, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $47,150,343

Exercised Options: $47,150,343

Current Obligation: $47,150,343

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA810505D0004

IDV Type: IDC

Timeline