Naval Air Systems Command awards $149.8M contract to McDonnell Douglas for F-18 Hornet logistics support
Contract Overview
Contract Amount: $228,697,626 ($228.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2003-04-11
End Date: 2009-05-31
Contract Duration: 2,242 days
Daily Burn Rate: $102.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE
Sector: Defense
Official Description: 200309!000004!1700!AA4F0 !NAVAL AIR SYSTEMS COMMAND !N0001903C0041 !A!N! !Y! !20030411!20031231!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000057100000!N!N!000057100000!R706!LOGISTICS SUPPORT SERVICES !A1A!AIRFRAMES AND SPARES !2AFX!F-18 HORNET !541990!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!V!1!001!N!1A!Z!Y!Z! ! !N!C!N! ! ! !Z!Z!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 $228.7 million to THE BOEING COMPANY for work described as: 200309!000004!1700!AA4F0 !NAVAL AIR SYSTEMS COMMAND !N0001903C0041 !A!N! !Y! !20030411!20031231!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. Contract awarded for logistics support services for F-18 Hornet airframes and spares. 2. McDonnell Douglas Corporation is the contractor, with a total contract value of $149,879,157. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Defense, specifically focusing on aircraft components and maintenance.
Value Assessment
Rating: fair
The contract value of $149.8M for logistics support services appears significant. Benchmarking against similar contracts for F-18 support would be necessary to assess if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This method can limit price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers compared to a fully competed contract.
Public Impact
Supports the operational readiness of the F-18 Hornet fleet, a critical asset for naval aviation. Ensures the availability of essential spare parts and maintenance services for a key military aircraft. Impacts the defense industrial base, particularly companies involved in aircraft sustainment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns in sole-source contracts
- Long contract duration
Positive Signals
- Ensures critical logistics support for a major defense platform
- Contract awarded to a known defense contractor
Sector Analysis
This contract falls within the Defense sector, specifically focusing on aircraft maintenance and logistics. Spending in this area is crucial for maintaining military readiness but requires careful oversight to ensure cost-effectiveness.
Small Business Impact
The contract was awarded to McDonnell Douglas Corporation, a large defense contractor. There is no indication of small business participation in this specific award.
Oversight & Accountability
Oversight would focus on ensuring McDonnell Douglas meets performance requirements and that costs are managed effectively, especially given the sole-source nature of the award.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Potential for cost overruns
- Long contract duration (2003-2009)
- Lack of transparency in pricing justification
Tags
all-other-professional-scientific-and-te, department-of-defense, mo, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $228.7 million to THE BOEING COMPANY. 200309!000004!1700!AA4F0 !NAVAL AIR SYSTEMS COMMAND !N0001903C0041 !A!N! !Y! !20030411!20031231!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000057100000!N!N!000057100000!R706!LOGISTICS SUPPORT SERVICES !A1A!AIRFRAMES AND SPARES !2AFX!F-18 HORNET !541990!E! !3! ! ! ! ! !99990909!B
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 $228.7 million.
What is the period of performance?
Start: 2003-04-11. End: 2009-05-31.
What was the justification for not competing this contract, and what steps were taken to ensure fair pricing?
The justification for not competing this contract is not provided in the data. Typically, sole-source contracts are awarded when only one source can provide the required goods or services. To ensure fair pricing, the government may conduct cost realism analyses, review historical pricing, or negotiate based on established rates.
What is the risk associated with a sole-source contract for long-term logistics support?
The primary risk of a sole-source contract for long-term logistics support is the potential for inflated costs due to a lack of competition. The contractor may have less incentive to control expenses or offer competitive pricing. Additionally, dependence on a single provider can create vulnerabilities if that provider faces financial or operational difficulties.
How does this contract contribute to the overall effectiveness of the F-18 Hornet program?
This contract is crucial for the effectiveness of the F-18 Hornet program by ensuring the availability of essential logistics support services and airframes/spares. Without this support, the operational readiness and combat capability of the F-18 fleet would be significantly diminished, impacting naval aviation's ability to perform its missions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE (V)
Evaluated Preference: NONE
Contractor Details
Address: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2003-04-11
Current End Date: 2009-05-31
Potential End Date: 2009-05-31 00:00:00
Last Modified: 2014-07-30
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