Naval Air Systems Command awarded $18.2M for electrical equipment, with a significant portion for digital topographic support systems

Contract Overview

Contract Amount: $18,255,254 ($18.3M)

Contractor: THE Boeing Company (0674)

Awarding Agency: Department of Defense

Start Date: 2003-09-24

End Date: 2010-05-31

Contract Duration: 2,441 days

Daily Burn Rate: $7.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200312!000015!1700!AT727 !NAVAL AIR SYSTEMS COMMAND !N0001903C0359 !A!N! !N! !20030924!20061005!006265946!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000007342459!N!N!000018853773!6625!ELECTRICAL & ELCT PROPERTIES MEAS & TST INSTRUMNTS!A1C!OTHER AIRCRAFT EQUIPMENT !1GHB!DGTL TOPOGRAPHIC SPPT SYS DTSS!335999!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1A!A!Y!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 $18.3 million to THE BOEING COMPANY (0674) for work described as: 200312!000015!1700!AT727 !NAVAL AIR SYSTEMS COMMAND !N0001903C0359 !A!N! !N! !20030924!20061005!006265946!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 value of $18.2M for electrical equipment and digital topographic support systems. 2. Awarded by Naval Air Systems Command, indicating a focus on aviation-related needs. 3. The contract was not competed, raising questions about potential cost efficiencies. 4. Duration of over 6 years suggests a long-term requirement for these specialized systems. 5. The primary product service code (PSC) is '6625' for Electrical and Electronic Properties Measuring and Testing Instruments. 6. The North American Industry Classification System (NAICS) code '335999' points to 'All Other Miscellaneous Electrical Equipment and Component Manufacturing'.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more specific details on the 'Digital Topographic Support Systems' and 'Electrical & Electronic Properties Measuring & Test Instruments' procured. The lack of competition suggests that a thorough price comparison against market rates or similar contracts was likely not performed, potentially leading to a less favorable price for the government. The fixed price nature of the contract provides some cost certainty, but the absence of competitive bidding limits the ability to assess if the $18.2 million represents a fair and reasonable price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means that the government did not benefit from the price discovery mechanisms that typically occur in a competitive bidding process, potentially resulting in higher costs.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down prices. Without a competitive process, it's harder to ensure the government received the best possible value for its investment.

Public Impact

Naval Air Systems Command benefits from the acquisition of specialized electrical equipment and digital topographic support systems. The contract supports the development and maintenance of critical aviation systems, likely for the U.S. Navy. The geographic impact is primarily within the defense sector, supporting military operations. Workforce implications may include specialized engineers and technicians involved in the manufacturing and integration of these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits transparency in pricing and value assessment.
Long contract duration (over 6 years) could expose the government to risks if technology or needs change.

Positive Signals

Firm Fixed Price contract provides cost certainty once awarded.
Awarded to a known entity (McDonnell Douglas Corporation, later Boeing), suggesting established capabilities.
Specialized nature of the equipment indicates a critical need for naval operations.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector, specifically focusing on electronic equipment and systems. The market for such specialized components is often characterized by high barriers to entry due to technological complexity and stringent quality requirements. Spending in this area is critical for maintaining advanced military capabilities. Comparable spending benchmarks would typically be found within other defense contracts for similar electronic warfare, navigation, or communication systems.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside or subcontracting plan. As a sole-source award, it is less likely to have been structured to specifically benefit small businesses. The primary contractor, McDonnell Douglas Corporation (later acquired by Boeing), is a large aerospace manufacturer, suggesting that the bulk of the work was likely performed internally or with other large subcontractors.

Oversight & Accountability

Oversight for this contract would have been managed by the Naval Air Systems Command (NAVAIR) and potentially the Defense Contract Management Agency (DCMA). As a firm fixed-price contract, oversight would focus on delivery schedules, quality control, and compliance with contract terms. Transparency is limited due to the sole-source nature, but contract awards are generally recorded in federal databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Naval Air Systems Command Contracts
Defense Contract Awards
Aerospace Electronic Systems
Digital Topographic Support Systems
Electrical Measurement and Test Instruments

Risk Flags

Sole-source award
Lack of competition
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.3 million to THE BOEING COMPANY (0674). 200312!000015!1700!AT727 !NAVAL AIR SYSTEMS COMMAND !N0001903C0359 !A!N! !N! !20030924!20061005!006265946!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000007342459!N!N!000018853773!6625!ELECTRICAL & ELCT PROPERTIES MEAS & TST INSTRUMNTS!A1C!OTHER AIRCRAFT EQUIPMENT !1GHB!DGTL TOPOGRAPHIC SPPT SYS DTSS!335999!E! !3! ! ! ! ! !99990909!B

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $18.3 million.

What is the period of performance?

Start: 2003-09-24. End: 2010-05-31.

What is the specific function and importance of the 'Digital Topographic Support Systems' (DTSS) procured under this contract?

The 'Digital Topographic Support Systems' (DTSS) procured under this contract likely refer to specialized equipment used for generating, processing, and displaying digital terrain and topographic data. In a naval aviation context, such systems are crucial for mission planning, navigation, and situational awareness, especially in complex or unfamiliar environments. They enable pilots and mission planners to visualize the terrain, identify potential hazards, and optimize flight paths. The exact specifications and capabilities would depend on the specific requirements of the Naval Air Systems Command at the time of the award. The 'DGTL TOPOGRAPHIC SPPT SYS DTSS' designation suggests a focus on digital data and support systems for topographic applications within naval aviation.

How does the $18.2 million contract value compare to similar procurements for electronic test instruments or topographic support systems?

Direct comparison of the $18.2 million contract value is difficult without knowing the exact specifications and quantities of the 'Electrical & Electronic Properties Measuring & Test Instruments' and 'Digital Topographic Support Systems' procured. However, for a contract spanning over six years awarded to a major defense contractor, this value is not inherently excessive, but the lack of competition prevents a definitive assessment of value for money. Typically, competitive bidding would provide a benchmark against which this price could be evaluated. The absence of such a benchmark, coupled with the sole-source nature, raises concerns about whether the government achieved the most cost-effective outcome possible.

What were the primary risks associated with this sole-source contract, and how were they mitigated?

The primary risk associated with this sole-source contract was the potential for overpayment due to the lack of competitive pricing. Without competing bids, there's less incentive for the contractor to offer the lowest possible price, and the government has a reduced ability to verify if the price is fair and reasonable. Another risk could be technological obsolescence, given the contract's long duration (over 6 years). Mitigation strategies, though not detailed in the provided data, would typically involve rigorous negotiation of the contract terms, detailed technical reviews to ensure the requirements were precisely defined, and potentially incorporating clauses for future technology refreshes or performance-based metrics to ensure continued relevance and value.

What is the track record of McDonnell Douglas Corporation (and subsequently Boeing) in delivering similar defense electronics and support systems?

McDonnell Douglas Corporation, prior to its acquisition by Boeing in 1997, had a long and established track record in the aerospace and defense industry, known for producing complex military aircraft, missiles, and related systems. Boeing has continued this legacy, being a major defense contractor with extensive experience in developing and manufacturing advanced electronic systems, avionics, and support equipment for various military branches. Both entities have historically demonstrated the capability to deliver sophisticated technological solutions. However, the specific performance on this particular contract, especially given its sole-source nature, would require a deeper dive into contract performance data and user feedback.

How has federal spending on 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' (NAICS 335999) trended over the years, and where does this contract fit?

Federal spending on NAICS code 335999, 'All Other Miscellaneous Electrical Equipment and Component Manufacturing,' can fluctuate based on defense procurement cycles, technological advancements, and specific program needs. This particular $18.2 million contract, awarded in 2003 and spanning over six years, represents a significant, albeit specific, investment within this category. It highlights the government's reliance on specialized manufacturers for niche electrical components and systems, particularly those supporting defense applications like naval aviation. Analyzing broader spending trends in this category would require access to historical federal procurement data, but contracts like this underscore the ongoing demand for advanced electrical and electronic systems within the defense sector.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

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

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline