DoD Awards $64M for F-15 Engineering Services to McDonnell Douglas, Later Boeing

Contract Overview

Contract Amount: $64,122,186 ($64.1M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2002-05-31

End Date: 2006-04-30

Contract Duration: 1,430 days

Daily Burn Rate: $44.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200208!000139!5700!GJ60 !WARNER ROBINS ALC/LFK !F3365701D0026 !A!N! !N!RJ01 !20020531!20021130!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000007895755!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A1A!AIRFRAMES AND SPARES !3AFF!F-15 EAGLE !541330!E! !5!B!S! ! !C!20170531!B! ! !A! !D!N!J!1!001!N!1G!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $64.1 million to THE BOEING COMPANY for work described as: 200208!000139!5700!GJ60 !WARNER ROBINS ALC/LFK !F3365701D0026 !A!N! !N!RJ01 !20020531!20021130!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. Significant contract for critical F-15 sustainment and engineering. 2. Awarded to McDonnell Douglas, a major defense contractor, later acquired by Boeing. 3. Sole-source award raises questions about competition and potential cost savings. 4. Long-term contract spanning over 1400 days indicates ongoing program support needs.

Value Assessment

Rating: questionable

The contract value of $64M for engineering services is substantial. Without specific benchmarks for F-15 engineering support, it's difficult to definitively assess value. However, the lack of competition suggests potential for overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a sole-source award, meaning it was not competed. This limits price discovery and may lead to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition in this sole-source award likely resulted in higher costs for taxpayers than if the services had been competitively procured.

Public Impact

Supports the critical F-15 Eagle fighter jet program, impacting national defense readiness. Ensures continued operational capability and maintenance for a key military asset. The award to a major defense contractor highlights the concentration of spending in the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price transparency.
Potential for cost overruns due to lack of competitive pressure.
Long contract duration may not reflect evolving needs or technology.

Positive Signals

Ensures critical engineering support for a vital defense asset.
Award to established contractor suggests reliability and expertise.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting aerospace and defense. Spending in this area is often driven by complex, long-term government programs with high barriers to entry for new competitors.

Small Business Impact

This contract was awarded to a large prime contractor, McDonnell Douglas (later Boeing). There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

As a sole-source award, this contract may have received less scrutiny than a competed one. Further oversight would be needed to ensure fair pricing and effective service delivery.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns.
Limited transparency in pricing.
Risk of vendor lock-in for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.1 million to THE BOEING COMPANY. 200208!000139!5700!GJ60 !WARNER ROBINS ALC/LFK !F3365701D0026 !A!N! !N!RJ01 !20020531!20021130!149879157!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000007895755!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A1A!AIRFRAMES AND SPARES !3AFF!F-15 EAGLE !541330!E! !5!B!S! ! !C!20170531!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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $64.1 million.

What is the period of performance?

Start: 2002-05-31. End: 2006-04-30.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. For a critical platform like the F-15, specific technical expertise or proprietary knowledge held by the original manufacturer might have been cited. Without the specific justification document, it's impossible to confirm the exact reasoning, but it likely centered on the specialized nature of the engineering services required for this advanced aircraft.

How does the cost of these engineering services compare to similar contracts for other major aircraft platforms?

Benchmarking the cost of these engineering services against similar contracts for other major aircraft platforms is challenging without access to a broader dataset of defense contracts. Factors like aircraft complexity, age, specific upgrade requirements, and the contractor's overhead structure significantly influence pricing. However, the absence of competition for this $64M award suggests a potential for higher unit costs compared to what might be achieved through a competitive bidding process.

What is the long-term effectiveness of relying on sole-source contracts for essential defense system support?

Relying on sole-source contracts for essential defense system support can ensure continuity and access to specialized expertise, which is crucial for maintaining complex platforms like the F-15. However, it poses a long-term risk of stifled innovation, reduced cost-efficiency, and potential vendor lock-in. Over time, this can lead to escalating costs and a diminished ability for the government to adapt to new technologies or market conditions without the original sole-source provider.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: 6200 JS MCDONNELL BLVD, SAINT LOUIS, MO, 63134

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: F3365701D0026

IDV Type: IDC

Timeline