DoD spent $11.5M on Abrasive Product Manufacturing with McDonnell Douglas Helicopter Company from 2005-2008

Contract Overview

Contract Amount: $11,528,384 ($11.5M)

Contractor: Mcdonnell Douglas Helicopter Company

Awarding Agency: Department of Defense

Start Date: 2005-12-30

End Date: 2008-12-31

Contract Duration: 1,097 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: MESA, MARICOPA County, ARIZONA, 85215

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to MCDONNELL DOUGLAS HELICOPTER COMPANY for work described as: Key points: 1. Spending of $11.5M over 3 years on abrasive products. 2. Contract awarded to McDonnell Douglas Helicopter Company. 3. Full and open competition was utilized. 4. Contract type was Firm Fixed Price. 5. No specific small business participation noted.

Value Assessment

Rating: fair

The contract value of $11.5M for abrasive product manufacturing over three years appears moderate. Without specific unit cost data or benchmarks for similar defense contracts, a precise pricing assessment is difficult. However, the firm fixed price structure suggests an attempt to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a broad solicitation process. This method is generally expected to yield competitive pricing and ensure fair market value. The firm fixed price contract further supports price discovery and cost control.

Taxpayer Impact: The use of full and open competition and a firm fixed price contract suggests an effort to maximize taxpayer value by leveraging market forces for pricing.

Public Impact

Defense readiness may be impacted by the availability of abrasive products. The contract supports a major defense contractor, potentially impacting its supply chain and operations. Taxpayer funds are allocated to the manufacturing sector for essential defense components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific unit cost data for benchmarking.
  • Limited information on small business participation.
  • Contract duration of 3 years may not reflect current market dynamics.

Positive Signals

  • Full and open competition utilized.
  • Firm Fixed Price contract type.
  • Awarded to a well-established defense contractor.

Sector Analysis

The spending falls under the manufacturing sector, specifically abrasive product manufacturing, which is essential for various industrial and defense applications. Benchmarks for defense-related manufacturing contracts can vary widely based on product complexity and volume.

Small Business Impact

The data indicates that small business participation was not a specific requirement or was not reported for this contract. Further investigation would be needed to determine if small businesses were involved in the supply chain or subcontracting.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency, suggesting established oversight processes. The firm fixed price nature of the contract also implies a degree of accountability for the contractor to deliver within the agreed price.

Related Government Programs

  • Abrasive Product Manufacturing
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Lack of detailed product specification.
  • Absence of unit cost benchmarking data.
  • No explicit mention of small business subcontracting.
  • Limited insight into performance metrics and quality control.

Tags

abrasive-product-manufacturing, department-of-defense, az, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to MCDONNELL DOUGLAS HELICOPTER COMPANY. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is MCDONNELL DOUGLAS HELICOPTER 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 $11.5 million.

What is the period of performance?

Start: 2005-12-30. End: 2008-12-31.

What was the specific type and quantity of abrasive products procured under this contract, and how did their unit cost compare to commercial equivalents?

The provided data does not specify the exact types or quantities of abrasive products. To assess value, a detailed breakdown of the procured items and their unit costs would be necessary. Comparing these to commercial market prices for similar items would reveal potential cost efficiencies or overspending by the Department of Defense.

What were the key performance indicators and quality assurance measures for the abrasive products delivered under this contract?

The data does not detail the specific performance indicators or quality assurance measures. For a defense contract, these would typically include adherence to strict material specifications, durability standards, and timely delivery. The firm fixed price contract implies the contractor bears the risk of meeting these quality standards within the agreed budget.

Were there any identified risks or challenges during the contract performance period, and how were they mitigated?

The provided data does not explicitly list risks or mitigation strategies employed during the contract. Potential risks could include supply chain disruptions, material quality issues, or production delays. The firm fixed price contract incentivizes the contractor to manage these risks proactively to avoid cost overruns.

Industry Classification

NAICS: ManufacturingOther Nonmetallic Mineral Product ManufacturingAbrasive Product Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Boeing Company (UEI: 009256819)

Address: 5000 E MCDOWELL RD, MESA, AZ, 04

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline

Start Date: 2005-12-30

Current End Date: 2008-12-31

Potential End Date: 2008-12-31 00:00:00

Last Modified: 2013-04-24

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