Naval Air Systems Command Awards $13.3M for AV-8B Remanufacture, Sole-Sourced

Contract Overview

Contract Amount: $13,385,710 ($13.4M)

Contractor: THE Boeing Company (0674)

Awarding Agency: Department of Defense

Start Date: 2003-12-18

End Date: 2006-02-28

Contract Duration: 803 days

Daily Burn Rate: $16.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200411!000005!1700!AC5G0 !NAVAL AIR SYSTEMS COMMAND !N0001904C0024 !A!N! !N! ! !20031218!20041130!006265946!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000005141708!N!N!000009169901!1560!AIRFRAME STRUCTURAL COMPONENTS !A1A!AIRFRAMES AND SPARES !530 !AV-8B REMANUFACTURE !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!U!1!001!N!1A!Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! !Y! !N00019!0001! !

Place of Performance

Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $13.4 million to THE BOEING COMPANY (0674) for work described as: 200411!000005!1700!AC5G0 !NAVAL AIR SYSTEMS COMMAND !N0001904C0024 !A!N! !N! ! !20031218!20041130!006265946!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. … Key points: 1. Contract awarded for AV-8B remanufacture, a critical component of naval aviation. 2. The Boeing Company secured the contract, indicating a strong incumbent position. 3. Risk associated with sole-source procurement and potential for price escalation. 4. Spending falls within the Defense sector, specifically aircraft components and services.

Value Assessment

Rating: fair

The contract value of $13.3M for AV-8B remanufacture appears reasonable given the specialized nature of aircraft components. Benchmarking against similar complex remanufacturing projects would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, likely due to specialized requirements or existing contractor capabilities. The lack of competition limits price discovery and may result in a higher cost to the government.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.

Public Impact

Supports the operational readiness of the AV-8B Harrier fleet. Ensures continued availability of critical aircraft components. Potential for extended service life of existing military assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition
Potential for cost overruns in remanufacturing
Long contract duration (803 days)

Positive Signals

Supports critical defense asset
Experienced contractor
Clear end date

Sector Analysis

This contract falls under the Defense sector, specifically focusing on aircraft airframes and spares. Spending benchmarks for aircraft remanufacturing can vary widely based on complexity and aircraft type.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award. Further analysis would be needed to determine if subcontracting opportunities were made available.

Oversight & Accountability

The contract was awarded by the Naval Air Systems Command, a key procurement agency within the Department of Defense. Oversight would typically involve contract performance monitoring and financial reviews.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source procurement
Cost Plus Fixed Fee contract type
Long contract duration
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.4 million to THE BOEING COMPANY (0674). 200411!000005!1700!AC5G0 !NAVAL AIR SYSTEMS COMMAND !N0001904C0024 !A!N! !N! ! !20031218!20041130!006265946!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000005141708!N!N!000009169901!1560!AIRFRAME STRUCTURAL COMPONENTS !A1A!AIRFRAMES AND SPARES !530 !AV-8B REMANUFACTURE !541330!E! !3! ! ! ! ! !999

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 $13.4 million.

What is the period of performance?

Start: 2003-12-18. End: 2006-02-28.

What is the justification for the sole-source award, and were alternatives considered?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Agencies must document these justifications thoroughly and explore alternatives to ensure fair and reasonable pricing, even in non-competitive scenarios. This process aims to mitigate the risks associated with limited competition.

How does the cost of this remanufacturing project compare to industry benchmarks for similar aircraft?

Benchmarking the cost of this AV-8B remanufacture against similar projects is crucial for assessing value. Factors like the extent of work, parts replaced, and labor rates influence costs. Without specific data on comparable remanufacturing efforts, it's difficult to definitively state if this $13.3 million award represents optimal value for taxpayer dollars.

What are the potential risks associated with the long duration and cost-plus fixed-fee contract type?

A long duration (803 days) increases the risk of schedule delays and cost fluctuations due to market changes. A Cost Plus Fixed Fee (CPFF) contract, while providing incentives for the contractor to control costs, can still lead to cost overruns if the initial cost estimates are inaccurate or unforeseen issues arise during remanufacturing.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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