Naval Air Systems Command awards $150M contract for T-45TS aircraft airframes and spares to McDonnell Douglas Corporation
Contract Overview
Contract Amount: $124,917,220 ($124.9M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2001-07-30
End Date: 2010-08-06
Contract Duration: 3,294 days
Daily Burn Rate: $37.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200111!001277!1700!AC5G1 !NAVAL AIR SYSTEMS COMMAND !N0001901C0267 !A!N!*!N! !20010730!20011015!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000002896000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !2ATS!T-45TS !336411!*!*!1! ! ! !*!*!*!B!*!*!A! !D !Y!J!1!001!N!1A!A!N!F! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001!
Place of Performance
Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $124.9 million to THE BOEING COMPANY for work described as: 200111!001277!1700!AC5G1 !NAVAL AIR SYSTEMS COMMAND !N0001901C0267 !A!N!*!N! !20010730!20011015!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. The contract value is substantial at $149,879,157, indicating a significant procurement. 2. McDonnell Douglas Corporation, now part of Boeing, was the sole awardee, raising questions about competition. 3. The risk appears moderate given the firm fixed-price contract type, but the lack of competition is a concern. 4. This spending falls within the Defense sector, specifically aircraft manufacturing.
Value Assessment
Rating: good
The contract value of approximately $150 million for aircraft airframes and spares appears reasonable for a large defense procurement. Benchmarking against similar large-scale aircraft manufacturing contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning there was no competitive bidding process. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying more than if the contract had been competitively bid.
Public Impact
Significant taxpayer funds allocated to defense procurement. Impact on the aerospace manufacturing industry and its supply chain. Potential for reduced innovation due to sole-source award. Ensuring the long-term sustainment and readiness of the T-45TS training aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Potential for cost overruns if not closely managed.
- Long contract duration (over 9 years) increases risk exposure.
Positive Signals
- Firm fixed-price contract type provides cost certainty.
- Award to a major defense contractor with established capabilities.
Sector Analysis
This contract falls under the Defense sector, specifically within aircraft manufacturing. The total contract value of approximately $150 million is significant for this sub-sector, reflecting the complexity and scale of military aircraft production.
Small Business Impact
There is no indication of small business participation in this sole-source award. Future contracts should explore opportunities for small business involvement to foster broader economic impact.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective contract performance. Regular reviews of cost and schedule are crucial.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Long contract duration
- Potential for cost overruns
- Lack of small business participation
Tags
aircraft-manufacturing, department-of-defense, mo, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $124.9 million to THE BOEING COMPANY. 200111!001277!1700!AC5G1 !NAVAL AIR SYSTEMS COMMAND !N0001901C0267 !A!N!*!N! !20010730!20011015!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000002896000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !2ATS!T-45TS !336411!*!*!1! ! ! !*!*!*!B!*!*!A!
Who is the contractor on this award?
The obligated recipient is THE BOEING COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $124.9 million.
What is the period of performance?
Start: 2001-07-30. End: 2010-08-06.
What was the justification for awarding this contract sole-source instead of through a competitive process?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without specific documentation, it's difficult to ascertain the precise reason. However, sole-source awards generally reduce price competition, potentially leading to higher costs for the government and taxpayers compared to competitively sourced contracts.
What are the potential risks associated with a sole-source contract for aircraft manufacturing over a long duration?
Sole-source contracts for complex manufacturing over extended periods carry risks such as inflated pricing due to lack of competition, potential for scope creep, and contractor complacency. The government may also face challenges in adapting to new technologies or market changes if the sole provider doesn't innovate. Close monitoring and robust contract management are essential to mitigate these risks.
How does this contract contribute to the overall effectiveness and readiness of the T-45TS training program?
This contract is crucial for ensuring the continued availability of airframes and spares for the T-45TS, a vital training aircraft for naval aviators. By securing these components, the contract directly supports pilot training pipelines and overall fleet readiness. The effectiveness hinges on timely delivery and quality of the supplied parts.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
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: J S MCDONNELL BLVD, SAINT LOUIS, MO, 90
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2001-07-30
Current End Date: 2010-08-06
Potential End Date: 2010-08-06 00:00:00
Last Modified: 2010-06-06
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