Naval Air Systems Command awarded $24.3M for aircraft structural component maintenance and repair

Contract Overview

Contract Amount: $24,292,560 ($24.3M)

Contractor: THE Boeing Company (0674)

Awarding Agency: Department of Defense

Start Date: 1997-05-03

End Date: 2006-09-30

Contract Duration: 3,437 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 199708!1700!8303!AM653!NAVAL AIR SYSTEMS COMMAND !N6852095C0038 !A!*!P00036 !19970503!19970930!006265946!006265946!009256819!N!53855!MCDONNELL DOUGLAS CORPORATION !LAMBERT ST LOUIS AIRPORT !SAINT LOUIS !MO!63103!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !0001!+000000270778!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !2AFE!F-5 FREEDOM FIGHTER !8731!3!*!*!*!B!B!*!A !N!J!2!003!B!* !C!N!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to THE BOEING COMPANY (0674) for work described as: 199708!1700!8303!AM653!NAVAL AIR SYSTEMS COMMAND !N6852095C0038 !A!*!P00036 !19970503!19970930!006265946!006265946!009256819!N!53855!MCDONNELL DOUGLAS CORPORATION !LAMBERT ST LOUIS AIRPORT !SAINT LOUIS !MO!63103!65000!510!29!ST. LOUIS !ST. LO… Key points: 1. Contract awarded for maintenance and repair of aircraft structural components, specifically for F-5 Freedom Fighter airframes. 2. The contract was competed fully and openly, indicating a competitive bidding process. 3. The duration of the contract was over 9 years, suggesting a long-term need for these services. 4. The contractor, McDonnell Douglas Corporation, was a significant player in the aerospace industry. 5. The contract was a firm-fixed-price type, which shifts cost risk to the contractor. 6. The total value of the contract was $24.3 million, with an initial award of $65,000.

Value Assessment

Rating: fair

The initial award of $65,000 for a contract that ultimately reached $24.3 million over nine years suggests a phased approach to funding or tasking. Without more granular data on the task orders and their pricing, it's difficult to definitively benchmark the value. However, the significant increase from the initial award to the final value indicates substantial work performed. Comparing this to similar maintenance and repair contracts for aging aircraft fleets would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' meaning all responsible sources were permitted to submit bids. The data indicates there were 3 bids received. This level of competition is generally positive for price discovery, as it encourages bidders to offer competitive pricing to win the contract.

Taxpayer Impact: A competitive award process like this generally benefits taxpayers by driving down costs through market forces, ensuring the government receives fair value for the services rendered.

Public Impact

The primary beneficiaries are the U.S. Navy's aviation units that operate F-5 Freedom Fighter aircraft, ensuring their airworthiness. Services delivered include essential maintenance and repair of structural components, critical for flight safety and operational readiness. The geographic impact is primarily centered around Naval Air Systems Command and its supported operational bases. The contract supported the workforce at McDonnell Douglas Corporation, contributing to employment in the aerospace maintenance sector.

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 contractor for an extended period might reduce flexibility in adopting new technologies or repair methods.
The significant increase from initial award to final value warrants scrutiny of task order management and scope creep.

Positive Signals

Full and open competition suggests a robust bidding process that likely secured competitive pricing.
Firm-fixed-price contract type shifts cost risk to the contractor, potentially protecting the government from unexpected cost increases.
The contract addressed a critical need for maintaining aging aircraft, ensuring operational readiness.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and repair. The market for such services is substantial, driven by the need to keep aging fleets operational. Comparable spending benchmarks would involve analyzing other contracts for MRO (Maintenance, Repair, and Overhaul) services for military aircraft, particularly for legacy platforms like the F-5.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As a large prime contract awarded to McDonnell Douglas Corporation, it's possible that small businesses could have been involved as subcontractors, but this information is not detailed here. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would have been provided by the Naval Air Systems Command (NAVAIR) and potentially the Defense Contract Management Agency (DCMA). Accountability measures would include performance reviews, adherence to contract terms, and quality control. Transparency is generally facilitated through contract databases like FPDS, though detailed operational oversight specifics are not publicly available.

Related Government Programs

Aircraft Maintenance and Repair
F-5 Freedom Fighter Program
Naval Aviation Support Contracts
Aerospace Component Services

Risk Flags

Long contract duration
Significant increase from initial award to final value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to THE BOEING COMPANY (0674). 199708!1700!8303!AM653!NAVAL AIR SYSTEMS COMMAND !N6852095C0038 !A!*!P00036 !19970503!19970930!006265946!006265946!009256819!N!53855!MCDONNELL DOUGLAS CORPORATION !LAMBERT ST LOUIS AIRPORT !SAINT LOUIS !MO!63103!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !0001!+000000270778!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !2AFE!F-5 FREEDOM FIGHTER !8731!3!*!*!*!B!B!*!A !N!J!2!0

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 $24.3 million.

What is the period of performance?

Start: 1997-05-03. End: 2006-09-30.

What was the historical spending trend for aircraft structural component maintenance and repair by the Naval Air Systems Command prior to and during this contract's period?

Analyzing historical spending for NAVAIR on aircraft structural maintenance and repair requires access to detailed budget and contract data over a significant period. Prior to this $24.3 million contract (1997-2006), NAVAIR likely had ongoing contracts for similar services, potentially with different prime contractors or for different aircraft types. Spending would fluctuate based on fleet size, aircraft age, operational tempo, and technological advancements in repair techniques. During the contract's life (1997-2006), spending on F-5 related maintenance would be concentrated, but NAVAIR's overall MRO budget would also cover numerous other aircraft platforms. Without specific historical data for NAVAIR's MRO spending categorized by aircraft type and service, a precise trend analysis is not possible from the provided snippet. However, it's reasonable to assume a consistent need for such services, with potential increases due to the aging of the F-5 fleet during that era.

How did the final contract value of $24.3 million compare to the initial award amount and the estimated value at the time of award?

The initial award amount for this contract was $65,000, with the total value reaching $24.3 million by its completion. This represents a significant increase, over 370 times the initial award. While the data doesn't provide the 'estimated value at the time of award' as a separate figure, the substantial growth from the initial small award to the final large sum suggests that the contract likely started with a limited scope or funding, and subsequent task orders or modifications significantly expanded the work performed. This pattern is common for long-term service contracts where initial awards might be for basic setup or initial tasks, followed by incremental funding and scope expansion as needs arise and are identified over the contract's multi-year duration.

What was the track record of McDonnell Douglas Corporation with similar defense contracts, particularly in aircraft maintenance and repair, around the time this contract was awarded?

McDonnell Douglas Corporation, prior to its acquisition by Boeing in 1997 (shortly after this contract's award date of May 1997), had a long and extensive track record in defense contracting, including significant experience in aircraft manufacturing, maintenance, and repair. They were a major prime contractor for numerous military aircraft programs, such as the F/A-18 Hornet, AV-8B Harrier, and various C-130 variants. Their involvement in maintaining and repairing structural components would have been a natural extension of their manufacturing expertise. Given their established position in the aerospace industry, it is highly probable they possessed the necessary capabilities, facilities, and personnel to perform the required maintenance and repair services effectively for the F-5 Freedom Fighter program.

Were there any performance issues or disputes reported for this contract during its 9-year duration?

The provided data snippet does not contain information regarding performance issues, disputes, or contract modifications beyond the basic award details. To ascertain if there were any performance problems, one would need to consult more detailed contract performance reports, payment histories, or potentially Inspector General reports related to this specific contract (N6852095C0038). Long-term contracts, especially those spanning nearly a decade and involving significant value escalation, can sometimes encounter challenges related to scope creep, changing requirements, or contractor performance. However, without access to such detailed records, it's impossible to confirm or deny the existence of performance issues for this particular contract.

How does the number of bidders (3) on this 'full and open' competition compare to typical competition levels for similar defense maintenance contracts?

A competition level of 3 bidders for a 'full and open' defense contract can be considered moderate. While 'full and open' implies the potential for numerous bidders, the actual number often depends on factors like contract complexity, specialized requirements, geographic location, and the number of capable contractors in the market. For large, complex defense maintenance contracts, receiving 3 or more bids is generally seen as a healthy level of competition that allows for price discovery and selection of a qualified contractor. However, if the market for F-5 structural repair services was highly concentrated or required very specific certifications, a lower number of bidders might be expected. Conversely, if the services were more commoditized, more bidders might be anticipated. Without broader market data for comparable contracts, it's difficult to definitively label 3 bidders as high or low, but it suggests a reasonable degree of market interest.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: THE Boeing Company (UEI: 009256819)

Address: LAMBERT ST LOUIS AIRPORT, SAINT LOUIS, MO, 63103

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline