Naval Air Warfare Center contract for physical properties testing equipment awarded to McDonnell Douglas Corporation for over $26 million

Contract Overview

Contract Amount: $26,119,268 ($26.1M)

Contractor: THE Boeing Company (0674)

Awarding Agency: Department of Defense

Start Date: 2003-08-28

End Date: 2011-11-30

Contract Duration: 3,016 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200311!000618!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833503C0131 !A!N! !N! !20030828!20040625!006265946!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000006399453!N!N!000024616653!6635!PHYSICAL PROPERTIES TESTING EQUIPMENT !C9E!ALL OTHER SUPPLIES AND EQUIPME!2000!NOT DISCERNABLE OR CLASSIFIED !334519!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!1!001!B! !Z!N!A! ! !Y!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SAINT LOUIS, ST. LOUIS (CITY) County, MISSOURI, 63166, UNITED STATES OF AMERICA

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $26.1 million to THE BOEING COMPANY (0674) for work described as: 200311!000618!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833503C0131 !A!N! !N! !20030828!20040625!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 over $26 million suggests a significant investment in specialized testing equipment. 2. Awarded to McDonnell Douglas Corporation, indicating a focus on established aerospace or defense contractors. 3. The contract duration of over 8 years (from award to final delivery) points to a long-term need or phased delivery. 4. The PSC code 334519 for 'Other Measuring and Controlling Device Manufacturing' highlights the specialized nature of the equipment. 5. The contract was awarded under full and open competition, suggesting a robust bidding process. 6. The contract's geographic focus is Missouri, specifically St. Louis.

Value Assessment

Rating: good

The contract value of $26,119,267.97 for physical properties testing equipment appears substantial. Benchmarking against similar contracts for specialized testing equipment is difficult without more specific details on the equipment's capabilities. However, the duration of the contract (over 8 years) suggests a significant, long-term requirement. The award to a major defense contractor like McDonnell Douglas Corporation (now Boeing) is typical for such specialized procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of full and open competition generally fosters a more competitive pricing environment, as contractors vie to offer the best value. The specific number of bidders is not provided, but the competition type suggests a healthy market for this type of equipment.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified vendors, ensuring the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are likely the Naval Air Warfare Center and potentially other branches of the Department of Defense requiring advanced physical properties testing. The contract delivers specialized physical properties testing equipment, crucial for research, development, quality assurance, and maintenance of aerospace systems. The geographic impact is centered in Missouri, with the contractor located in St. Louis. This contract supports the defense industrial base and potentially the workforce involved in the manufacturing and support of advanced testing equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential cost overruns if not managed effectively.
Reliance on a single large contractor might limit future flexibility or innovation from smaller specialized firms.
The specific nature of 'physical properties testing equipment' could imply high maintenance and calibration costs over the contract's lifespan.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely secured favorable pricing.
The contract value indicates a significant investment in critical testing capabilities for naval aviation.
The long duration suggests a stable, long-term requirement, allowing for planned integration and utilization of the equipment.

Sector Analysis

This contract falls within the 'Other Measuring and Controlling Device Manufacturing' sector, a niche within the broader manufacturing industry. This sector is critical for defense and aerospace, providing essential tools for quality control, research, and development. The market for such specialized equipment is often dominated by a few key players capable of meeting stringent defense specifications. The contract value of over $26 million for specialized testing equipment is significant and reflects the high cost associated with advanced technological capabilities.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. Given the specialized nature of the equipment and the award to a major defense contractor, it is less likely that small businesses were the primary awardees. However, the prime contractor, McDonnell Douglas Corporation (now Boeing), may have utilized small business subcontractors for specific components or services, which is a common practice in large defense contracts.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy and the Naval Air Warfare Center. Accountability measures would be embedded in the contract's terms and conditions, including performance metrics, delivery schedules, and quality assurance requirements. Transparency is generally maintained through contract award databases, though specific technical details of the equipment might be sensitive. The Inspector General for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Defense Advanced Research Projects Agency (DARPA) Equipment Procurements
Aerospace Testing and Evaluation Equipment
Department of Defense Research and Development Contracts
Physical Science and Engineering Equipment

Risk Flags

Long contract duration may increase risk of obsolescence or cost escalation.
Specialized nature of equipment could lead to high maintenance and calibration costs.
Potential for integration challenges with existing naval systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to THE BOEING COMPANY (0674). 200311!000618!1700!A8050 !NAVAL AIR WARFARE CENTER, AIRCRA!N6833503C0131 !A!N! !N! !20030828!20040625!006265946!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000006399453!N!N!000024616653!6635!PHYSICAL PROPERTIES TESTING EQUIPMENT !C9E!ALL OTHER SUPPLIES AND EQUIPME!2000!NOT DISCERNABLE OR CLASSIFIED !334519!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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $26.1 million.

What is the period of performance?

Start: 2003-08-28. End: 2011-11-30.

What specific types of physical properties testing equipment were procured under this contract?

The contract specifies 'PHYSICAL PROPERTIES TESTING EQUIPMENT' under PSC code 334519. While the exact specifications are not detailed in the provided data, this category typically includes instruments for measuring material characteristics such as tensile strength, hardness, elasticity, thermal conductivity, impact resistance, and fatigue life. For naval aviation, this could involve testing materials used in airframes, engines, and electronic components to ensure they meet rigorous performance and safety standards under various environmental conditions.

How does the contract value of over $26 million compare to similar procurements for specialized testing equipment?

Direct comparison is challenging without knowing the precise capabilities and scale of the equipment. However, $26 million for a suite of advanced testing equipment over an 8-year period is substantial, reflecting the high cost of sophisticated scientific instrumentation. Procurements for specialized aerospace testing facilities or major equipment can easily run into tens of millions of dollars. The value suggests a significant investment in critical infrastructure for the Naval Air Warfare Center, likely supporting advanced research, development, and sustainment activities for naval aircraft.

What were the key performance indicators or milestones for this contract?

The provided data indicates an award date of August 28, 2003, and an expected completion date of November 30, 2011, giving a duration of over 8 years. Key performance indicators would likely have included timely delivery of equipment, adherence to technical specifications, successful calibration and testing of the equipment, and potentially training for personnel. Milestones would have been phased deliveries of different equipment components or systems, along with acceptance testing at various stages.

What is the track record of McDonnell Douglas Corporation (now Boeing) in fulfilling similar defense contracts?

McDonnell Douglas Corporation, prior to its acquisition by Boeing in 1997, had a long and extensive history of fulfilling complex defense contracts for the U.S. military, including significant work with the Navy. Boeing, as the successor, continues this legacy, being one of the largest aerospace and defense contractors globally. Both entities have demonstrated capabilities in delivering advanced systems, aircraft, and related equipment, often involving sophisticated manufacturing and integration processes. Their track record generally includes successful execution of large-scale, high-value contracts, though like any major contractor, they have also faced challenges and scrutiny on specific programs.

Were there any identified risks or challenges associated with this specific contract?

While the provided data doesn't explicitly list risks, contracts of this magnitude and duration for specialized equipment inherently carry risks. These could include technological obsolescence if the equipment's capabilities are surpassed by newer advancements during its long service life, potential cost overruns due to unforeseen manufacturing complexities or material price increases, and integration challenges with existing naval systems. The long delivery schedule also poses a risk of schedule delays. Effective program management and contingency planning would be crucial to mitigate these potential issues.

How does this spending align with broader trends in defense spending on testing and evaluation equipment?

This contract represents a significant, albeit specific, investment in testing and evaluation (T&E) capabilities, which are a critical component of overall defense spending. The Department of Defense consistently allocates substantial funds to T&E to ensure the reliability, safety, and effectiveness of its platforms and systems. Spending in this area fluctuates based on modernization programs, new platform development, and sustainment needs. A contract of this size for specialized equipment aligns with the ongoing need for advanced T&E infrastructure to support the development and maintenance of complex military assets like naval aircraft.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Other Measuring and Controlling Device Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Boeing Company (UEI: 009256819)

Address: J S MCDONNELL BLVD, SAINT LOUIS, MO, 63166

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline