Defense awards $616.8M for aircraft parts, with McDonnell Douglas as contractor

Contract Overview

Contract Amount: $616,837,603 ($616.8M)

Contractor: THE Boeing Company (0674)

Awarding Agency: Department of Defense

Start Date: 2002-12-31

End Date: 2013-05-31

Contract Duration: 3,804 days

Daily Burn Rate: $162.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200303!000029!5700!GU86 !ASC/YWK !F3365701D2074 !A!N! !N!0002 !20021231!20060831!006265946!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000057896085!N!N!000000000000!U099!OTHER EDUCATION & TRAINING SERVICES !A1A!AIRFRAMES AND SPARES !3000!NOT DISCERNABLE OR CLASSIFIED !336413!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!J!2!010!B! !Z!Y!F! ! !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 $616.8 million to THE BOEING COMPANY (0674) for work described as: 200303!000029!5700!GU86 !ASC/YWK !F3365701D2074 !A!N! !N!0002 !20021231!20060831!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. Significant contract value of $616.8 million awarded to McDonnell Douglas Corporation. 2. Contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. 3. Awarded by the Department of Defense, specifically the Air Force. 4. Competition type is 'Full and Open', suggesting broad market participation. 5. Contract duration is over 10 years, indicating long-term need.

Value Assessment

Rating: good

The total award amount is substantial at $616.8 million. Benchmarking against similar contracts for aircraft parts and auxiliary equipment is difficult without more granular data on specific components and quantities. However, the duration and scope suggest a significant procurement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The existence of multiple bidders in such a scenario would drive down costs.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it promotes a competitive environment, leading to potentially lower prices and better quality goods and services.

Public Impact

Supports the U.S. Air Force's operational readiness by providing essential aircraft parts. Contributes to the aerospace manufacturing sector, supporting jobs and innovation. Ensures the continued maintenance and functionality of military aircraft fleets. Potential for technological advancements in aircraft component manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Long contract duration could lead to price escalation if not managed effectively.
Reliance on a single contractor for critical parts might pose supply chain risks.
Potential for obsolescence of parts over the extended contract period.

Positive Signals

Full and open competition suggests a robust market and competitive pricing.
Significant investment in critical defense infrastructure.
Long-term commitment provides stability for the contractor and supply chain.

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the broader aerospace industry. Spending in this sector is directly tied to defense procurement and the operational needs of military aviation.

Small Business Impact

While the primary contractor is McDonnell Douglas Corporation (now part of Boeing), the contract may involve subcontracting opportunities for small businesses within the aerospace supply chain. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Defense is responsible for overseeing this contract. Oversight would focus on ensuring timely delivery, quality of parts, and adherence to contract terms. Audits and performance reviews are standard oversight mechanisms.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Long contract duration
Potential for price escalation
Supply chain dependency
Technological obsolescence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $616.8 million to THE BOEING COMPANY (0674). 200303!000029!5700!GU86 !ASC/YWK !F3365701D2074 !A!N! !N!0002 !20021231!20060831!006265946!006265946!009256819!N!MCDONNELL DOUGLAS CORPORATION !J S MCDONNELL BLVD !SAINT LOUIS !MO!63166!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !+000057896085!N!N!000000000000!U099!OTHER EDUCATION & TRAINING SERVICES !A1A!AIRFRAMES AND SPARES !3000!NOT DISCERNABLE OR CLASSIFIED !336413!E! !5!B!M! !A! !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 Air Force).

What is the total obligated amount?

The obligated amount is $616.8 million.

What is the period of performance?

Start: 2002-12-31. End: 2013-05-31.

What specific types of aircraft parts are being procured under this contract, and how do their costs compare to market rates for similar components?

The data indicates the contract is for 'AIRFRAMES AND SPARES' and falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. Without a detailed breakdown of the specific parts, it's challenging to perform a precise cost comparison. However, the total award of $616.8 million over a decade suggests a significant volume or high-value components, necessitating robust cost analysis by the DoD.

What are the potential risks associated with a long-term contract (over 10 years) for aircraft parts, particularly concerning technological obsolescence and supply chain disruptions?

Long-term contracts for aircraft parts carry risks of technological obsolescence as aircraft designs and operational requirements evolve. Supply chain disruptions can also occur due to geopolitical events, material shortages, or contractor performance issues. Mitigation strategies include regular contract reviews, incorporating flexibility clauses, and maintaining strong relationships with multiple suppliers where possible.

How effectively does the 'Full and Open Competition' method ensure value for money and encourage innovation in the aircraft parts manufacturing sector?

Full and open competition generally promotes value for money by fostering a competitive environment that drives down prices and encourages efficiency. It can also spur innovation as companies strive to differentiate their offerings. However, the effectiveness depends on the complexity of the parts, the number of qualified bidders, and the clarity of the government's requirements.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: F3365701D2074

IDV Type: IDC

Timeline