Navy Awards $150M for T-45TS Aircraft Fixed Wing Airframes and Spares to McDonnell Douglas
Contract Overview
Contract Amount: $163,747,766 ($163.7M)
Contractor: THE Boeing Company
Awarding Agency: Department of Defense
Start Date: 2002-11-06
End Date: 2007-06-28
Contract Duration: 1,695 days
Daily Burn Rate: $96.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200304!006625!1700!AC5G1 !NAVAL AIR SYSTEMS COMMAND !N0001903C6528 !A!N! !N! !20021106!20050930!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000002424671!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !2ATS!T-45TS !336411!E! !3! ! ! ! ! !99990909!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, SAINT LOUIS County, MISSOURI, 63134
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $163.7 million to THE BOEING COMPANY for work described as: 200304!006625!1700!AC5G1 !NAVAL AIR SYSTEMS COMMAND !N0001903C6528 !A!N! !N! !20021106!20050930!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 critical T-45TS trainer aircraft components. 2. Sole-source award to McDonnell Douglas raises questions about competition. 3. Significant taxpayer investment in defense aviation manufacturing. 4. Sector focus on aircraft manufacturing and defense procurement.
Value Assessment
Rating: fair
The contract value of $149,879,157 appears substantial for aircraft components. Without specific unit breakdowns or comparisons to similar airframe contracts, a precise value assessment is difficult. However, the duration and scope suggest a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The 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 in this sole-source award may result in a higher price paid by taxpayers for these essential aircraft components.
Public Impact
Ensures continued readiness for Navy pilot training programs. Supports jobs in the aerospace manufacturing sector. Potential for cost overruns due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Potential for higher costs without competitive bidding
- Long contract duration
Positive Signals
- Supports critical defense training aircraft
- Ensures supply chain for essential components
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing. Spending benchmarks for airframes and spares can vary widely based on aircraft type and complexity. The $150M award is significant for a single contract.
Small Business Impact
Analysis of small business participation is not available from the provided data. Sole-source contracts often have less emphasis on small business subcontracting unless specifically mandated.
Oversight & Accountability
Oversight would typically be managed by the Naval Air Systems Command (NAVAIR). The contract's sole-source nature warrants close monitoring to ensure fair pricing and performance.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency in pricing
- Long-term contract dependency
Tags
aircraft-manufacturing, department-of-defense, mo, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $163.7 million to THE BOEING COMPANY. 200304!006625!1700!AC5G1 !NAVAL AIR SYSTEMS COMMAND !N0001903C6528 !A!N! !N! !20021106!20050930!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000002424671!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !2ATS!T-45TS !336411!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 $163.7 million.
What is the period of performance?
Start: 2002-11-06. End: 2007-06-28.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of viable alternatives. For defense contracts, specific regulations govern sole-source procurements, often requiring extensive documentation to prove necessity and ensure fair pricing, even without competition.
How does the per-unit cost of these airframes and spares compare to similar contracts or commercial equivalents?
Without access to detailed cost breakdowns or data on comparable contracts, it is challenging to benchmark the per-unit cost. The absence of competition makes direct comparison difficult. Further analysis would require access to historical data or industry cost models for similar aircraft components.
What is the long-term strategic value of this sole-source contract for the Navy's training capabilities?
The long-term strategic value lies in ensuring the continued availability of T-45TS aircraft, crucial for training naval aviators. However, the sole-source nature raises concerns about long-term cost-effectiveness and potential over-reliance on a single supplier, which could impact future modernization or cost-saving initiatives.
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, 63166
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $154,360
Exercised Options: $154,360
Current Obligation: $163,747,766
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2002-11-06
Current End Date: 2007-06-28
Potential End Date: 2007-06-28 00:00:00
Last Modified: 2023-08-11
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