DoD awards $49.3M contract to McDonnell Douglas for aircraft manufacturing, with Boeing as successor

Contract Overview

Contract Amount: $49,347,700 ($49.3M)

Contractor: THE Boeing Company (0674)

Awarding Agency: Department of Defense

Start Date: 1996-10-17

End Date: 2008-10-03

Contract Duration: 4,369 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 199712!5700!0005!GU47 !ASC/YTK !F3365789C0002 !A!*!P00203 !19961017!19980131!161213269!006265946!009256819!N!76301!MCDONNELL DOUGLAS CORPORATION !PO BOX 516 !SAINT LOUIS !MO!63166!79000!173!20!WICHITA !SEDGWICK !KANSAS !0001!+000004298308!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !3000!NOT DISCERNABLE OR CLASSIFIED !3721!3!*!*!B!B!A!*!A !N!J!2!002!A!* !A!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 $49.3 million to THE BOEING COMPANY (0674) for work described as: 199712!5700!0005!GU47 !ASC/YTK !F3365789C0002 !A!*!P00203 !19961017!19980131!161213269!006265946!009256819!N!76301!MCDONNELL DOUGLAS CORPORATION !PO BOX 516 !SAINT LOUIS !MO!63166!79000!173!20!WICHITA !SEDGWI… Key points: 1. Contract awarded to McDonnell Douglas for fixed-wing aircraft components. 2. The contract value is $49.3 million, with a base value of $79,000. 3. Competition was full and open, indicating a competitive bidding process. 4. The sector is Defense, specifically Aircraft Manufacturing. 5. The contract duration is 4369 days, spanning over 12 years.

Value Assessment

Rating: fair

The contract's base value of $79,000 is significantly lower than the total awarded amount of $49.3 million. The large difference suggests substantial modifications or task orders were issued over the contract's long duration, making a direct pricing comparison difficult without more detail.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bidders were considered. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price compared to a sole-source procurement.

Public Impact

Taxpayers benefit from competitive bidding in defense contracts. Long contract durations can lead to evolving requirements and potential cost overruns. The successor contractor, Boeing, will manage ongoing performance and potential future needs. The contract supports the critical defense sector, ensuring operational readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration (over 12 years) may indicate scope creep or evolving needs.
Significant difference between base value and awarded value suggests multiple modifications.
Lack of detailed breakdown for the $49.3M awarded value hinders precise analysis.

Positive Signals

Awarded under full and open competition.
Contract supports critical defense capabilities.
Successor contractor (Boeing) has strong industry presence.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, a key component of the Defense industry. Spending in this sector is often driven by national security needs and technological advancements, with significant government investment.

Small Business Impact

The data indicates the primary awardee was McDonnell Douglas Corporation, a large aerospace company. There is no explicit information regarding small business participation in this specific contract.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency, responsible for ensuring contractor performance and compliance. The long duration and multiple modifications would require ongoing oversight.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Long contract duration (over 12 years).
Significant difference between base and awarded value.
Potential for scope creep and evolving requirements.
Lack of detailed cost breakdown for awarded value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.3 million to THE BOEING COMPANY (0674). 199712!5700!0005!GU47 !ASC/YTK !F3365789C0002 !A!*!P00203 !19961017!19980131!161213269!006265946!009256819!N!76301!MCDONNELL DOUGLAS CORPORATION !PO BOX 516 !SAINT LOUIS !MO!63166!79000!173!20!WICHITA !SEDGWICK !KANSAS !0001!+000004298308!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !3000!NOT DISCERNABLE OR CLASSIFIED !3721!3!*!*!B!B!A!*!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 $49.3 million.

What is the period of performance?

Start: 1996-10-17. End: 2008-10-03.

What was the primary driver for the significant increase from the base contract value to the total awarded amount?

The substantial difference between the $79,000 base value and the $49.3 million awarded amount likely stems from numerous contract modifications, change orders, or task orders issued over the contract's extensive 12-year duration. These could reflect evolving requirements, unforeseen technical challenges, or the addition of new capabilities for the aircraft.

How did the full and open competition impact the final pricing for these aircraft components?

Full and open competition generally fosters a more competitive environment, encouraging bidders to offer their best pricing to secure the contract. This process allows the government to solicit proposals from multiple sources, compare them, and select the most advantageous offer, likely resulting in a more cost-effective outcome for taxpayers than a sole-source award.

What are the potential risks associated with a contract spanning over 12 years?

Contracts with such long durations carry risks including potential cost overruns due to inflation or changing market conditions, scope creep as requirements evolve, and technological obsolescence. Maintaining effective oversight and contract management becomes crucial to mitigate these risks and ensure the delivered product remains relevant and cost-effective throughout its lifecycle.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: THE Boeing Company

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

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline