Navy Awards $13.5M for Missile Launchers, Boosting McDonnell Douglas

Contract Overview

Contract Amount: $13,463,970 ($13.5M)

Contractor: THE Boeing Company (0674)

Awarding Agency: Department of Defense

Start Date: 2000-10-01

End Date: 2008-05-25

Contract Duration: 2,793 days

Daily Burn Rate: $4.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: NOT REPORTED

Sector: Defense

Official Description: 200105!001470!1700!AT717 !NAVAL AIR SYSTEMS COMMAND !N0001900C0147 !A!N!*!N! !20000815!20021231!006265946!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63103!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000013579460!Y!N!000000000000!1440!LAUNCHERS, GUIDED MISSILE !A2 !MISSILE AND SPACE SYSTEMS !2CPR!AN/SWG-1A HSCLLS !336419!*!*!3! ! ! !*!*!*!B!*!*!A! !D !N!J!1!001!N!1A!A!Y!A! ! !N!C!N! ! ! !A!A!A!A!* !A!C!N! ! ! !Y! ! !0001!

Place of Performance

Location: SAINT LOUIS, ST. LOUIS (CITY) County, MISSOURI, 63166

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $13.5 million to THE BOEING COMPANY (0674) for work described as: 200105!001470!1700!AT717 !NAVAL AIR SYSTEMS COMMAND !N0001900C0147 !A!N!*!N! !20000815!20021231!006265946!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63103!65000!510!29!ST. LOUIS !ST. L… Key points: 1. Contract awarded to McDonnell Douglas Corporation for missile launchers. 2. Significant value of $13.5 million for specialized defense equipment. 3. Sole-source procurement raises questions about competition and price discovery. 4. Sector is Missile and Space Systems, a critical defense area.

Value Assessment

Rating: fair

The contract value of $13.5 million for missile launchers appears substantial. Benchmarking against similar contracts for specialized defense components is difficult without more granular data on the specific AN/SWG-1A HSCLLS system.

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 taxpayers compared to a competitive bidding process.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if multiple vendors had vied for the contract.

Public Impact

Enhances U.S. Navy's missile defense capabilities. Supports a major defense contractor, potentially impacting jobs. Highlights reliance on specific, potentially sole-sourced, defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Potential for overpayment due to lack of competitive pricing.
Long contract duration (2000-2008) may not reflect current market prices.

Positive Signals

Procures critical defense equipment.
Supports established defense industrial base.

Sector Analysis

The Missile and Space Systems sector is characterized by high R&D costs, long development cycles, and significant government reliance. Spending benchmarks are highly specific to the technology and platform.

Small Business Impact

This contract was awarded to a large corporation, McDonnell Douglas. There is no indication of small business participation in this specific award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and justification for the lack of competition. Post-award oversight would be crucial.

Related Government Programs

Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source procurement
Lack of price competition
Potential for cost overruns
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to THE BOEING COMPANY (0674). 200105!001470!1700!AT717 !NAVAL AIR SYSTEMS COMMAND !N0001900C0147 !A!N!*!N! !20000815!20021231!006265946!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63103!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000013579460!Y!N!000000000000!1440!LAUNCHERS, GUIDED MISSILE !A2 !MISSILE AND SPACE SYSTEMS !2CPR!AN/SWG-1A HSCLLS !336419!*!*!3! ! ! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is THE BOEING COMPANY (0674).

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.5 million.

What is the period of performance?

Start: 2000-10-01. End: 2008-05-25.

What is the justification for awarding this contract on a sole-source basis?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. This could be due to proprietary technology, unique capabilities, or urgent needs where competition is not feasible. A thorough review of the justification documentation is necessary to validate the necessity of this procurement approach.

How does the unit cost of the AN/SWG-1A HSCLLS compare to similar missile launcher systems?

Direct comparison is challenging without specific technical details and quantities. However, given the sole-source nature and the specialized defense application, the unit cost is likely higher than for more commoditized or competitively sourced systems. Further analysis would require access to detailed specifications and pricing data from comparable contracts.

What is the long-term strategic value of investing in this specific missile launcher system?

The long-term value depends on the system's effectiveness in meeting evolving threats, its integration with broader naval strategies, and its operational lifespan. Continued investment suggests it remains a critical component of naval air defense. However, the sole-source aspect raises concerns about future adaptability and cost-efficiency compared to potentially more innovative, competitive solutions.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: NOT REPORTED (NO)

Contractor Details

Parent Company: THE Boeing Company (UEI: 009256819)

Address: J S MCDONNELL BLVD, SAINT LOUIS, MO, 90

Business Categories: Category Business, Not Designated a Small Business

Timeline