DoD awards $31M for Apache helicopter airframes and spares to McDonnell Douglas Helicopter Company

Contract Overview

Contract Amount: $31,083,563 ($31.1M)

Contractor: Mcdonnell Douglas Helicopter Company

Awarding Agency: Department of Defense

Start Date: 2002-11-25

End Date: 2010-03-31

Contract Duration: 2,683 days

Daily Burn Rate: $11.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200302!000007!2100!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2303C0009 !A!N! !N! !20021125!20061231!047800297!006265946!009256819!N!MCDONNELL DOUGLAS HELICOPTER C!5000 E MCDOWELL ROAD !MESA !AZ!85215!46000!013!04!MESA !MARICOPA !ARIZONA !+000016266430!Y!N!000000000000!1520!AIRCRAFT ROTARY WING !A1A!AIRFRAMES AND SPARES !1AIG!LONGBOW APACHE !336411!B!B!3! ! ! ! ! !99990909!B! ! !N!Z!D!N!J!1!001!N!1G!A!Y!F! ! !N!C!N! ! ! !A!A!A!A!* !A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: MESA, MARICOPA County, ARIZONA, 85215

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $31.1 million to MCDONNELL DOUGLAS HELICOPTER COMPANY for work described as: 200302!000007!2100!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2303C0009 !A!N! !N! !20021125!20061231!047800297!006265946!009256819!N!MCDONNELL DOUGLAS HELICOPTER C!5000 E MCDOWELL ROAD !MESA !AZ!85215!46000!013!04!MESA !MARICOPA !ARIZONA !+000016266430!Y!N!000000000000!1520!AIRCR… Key points: 1. The contract focuses on rotary-wing aircraft airframes and spares, specifically for the Longbow Apache. 2. This was a definitive contract awarded on a 'not competed' basis. 3. The contract duration was 2683 days, with a total value of $31,083,563.13. 4. The primary sector is Defense, with a specific focus on aircraft manufacturing.

Value Assessment

Rating: fair

The contract value of $31M for Apache helicopter airframes and spares appears reasonable given the duration and specialized nature of the equipment. Benchmarking against similar complex aircraft component contracts would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive bidding process.

Taxpayer Impact: The lack of competition may have resulted in a higher price than could have been achieved through a competitive solicitation, impacting taxpayer funds.

Public Impact

Taxpayers may have paid a premium due to the sole-source nature of this contract. The long duration of the contract suggests a sustained need for these aircraft components. The specific focus on Apache helicopters highlights continued investment in this critical defense platform.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment due to sole-source award

Positive Signals

Awarded to a known manufacturer of defense equipment
Long contract duration indicates sustained need

Sector Analysis

This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is critical for national security but requires careful oversight to ensure cost-effectiveness, especially in non-competed awards.

Small Business Impact

There is no indication that small businesses were involved as prime contractors or significant subcontractors in this particular award. Further analysis would be needed to determine if small business participation was considered or mandated.

Oversight & Accountability

The 'not competed' status raises questions about the oversight applied to justify the sole-source award. Robust justification and review processes are crucial to ensure fair pricing and prevent waste.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award
Potential for inflated pricing
Lack of transparency in justification
Limited opportunity for small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.1 million to MCDONNELL DOUGLAS HELICOPTER COMPANY. 200302!000007!2100!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2303C0009 !A!N! !N! !20021125!20061231!047800297!006265946!009256819!N!MCDONNELL DOUGLAS HELICOPTER C!5000 E MCDOWELL ROAD !MESA !AZ!85215!46000!013!04!MESA !MARICOPA !ARIZONA !+000016266430!Y!N!000000000000!1520!AIRCRAFT ROTARY WING !A1A!AIRFRAMES AND SPARES !1AIG!LONGBOW APACHE !336411!B!B!3! ! ! ! ! !99990909!B! ! !N!Z!D!N!J!1!001!N!1G!A!Y!F! ! !N!C!N! ! ! !A!A!A!A!* !A!C!N! ! ! ! ! ! !0001! !

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 $31.1 million.

What is the period of performance?

Start: 2002-11-25. End: 2010-03-31.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or the unavailability of alternative sources. Without specific documentation, it's difficult to ascertain the precise reason. However, for complex defense systems like the Apache, there might be proprietary technology or specialized manufacturing processes that limit competition.

How does the per-unit cost of these airframes and spares compare to similar contracts or industry benchmarks?

Benchmarking the per-unit cost is challenging without more detailed cost breakdowns and access to comparable contract data. Given the sole-source nature, it's possible the pricing is higher than a competitive bid. A thorough cost analysis by the agency would be required to validate the reasonableness of the price against industry standards for similar military aircraft components.

What is the long-term strategic value of continuing to procure parts for the Longbow Apache through non-competitive means?

The long-term strategic value hinges on the continued operational relevance of the Longbow Apache fleet. If the platform remains critical to defense strategy, securing necessary parts is paramount. However, relying on non-competitive procurement for extended periods risks escalating costs and potentially hinders technological modernization if alternative, more cost-effective solutions are overlooked.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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

Parent Company: THE Boeing Company

Address: 5000 E MCDOWELL RD, MESA, AZ, 85215

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

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline