DoD Awards $2.84 Billion for CLS Aircraft Program Management and Support Services to McDonnell Douglas
Contract Overview
Contract Amount: $2,840,819,576 ($2.8B)
Contractor: THE Boeing Company (0674)
Awarding Agency: Department of Defense
Start Date: 1998-06-29
End Date: 2011-07-31
Contract Duration: 4,780 days
Daily Burn Rate: $594.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 199809!5700!0214!GD90 !OC-ALC/LKD (CLS AIRCRAFT) !F3460198C0125 !A!*!* !19980629!19990930!006265946!006265946!009256819!N!0PXV4!MCDONNELL DOUGLAS CORPORATION !LAMBERT ST LOUIS AIRPORT !SAINT LOUIS !MO!63103!31276!189!29!HAZELWOOD !ST. LOUIS !MISSOURI !0001!+000000119687!Y!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !A1A!AIRFRAMES AND SPARES !3ADB!C-10 !3728!3!*!*!*!B!A!*!A !N!J!2!002!B!* !C!N!Z!* !* !Y!C!*!C!C!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78226
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $2.84 billion to THE BOEING COMPANY (0674) for work described as: 199809!5700!0214!GD90 !OC-ALC/LKD (CLS AIRCRAFT) !F3460198C0125 !A!*!* !19980629!19990930!006265946!006265946!009256819!N!0PXV4!MCDONNELL DOUGLAS CORPORATION !LAMBERT ST LOUIS AIRPORT !SAINT LOUIS !MO!63103!31276!189!29!HAZELWOOD !ST. LO… Key points: 1. The contract, valued at $2.84 billion, is for program management and support services related to CLS aircraft. 2. Awarded to McDonnell Douglas Corporation, the contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code. 3. The contract was awarded under full and open competition, indicating a competitive bidding process. 4. The duration of the contract is substantial, spanning from June 1998 to July 2011, with a period of performance of 4780 days.
Value Assessment
Rating: fair
The total value of $2.84 billion over a long period suggests a significant investment. Benchmarking against similar long-term, large-scale program management contracts for defense aircraft would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically leads to better price discovery and potentially more competitive pricing for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.
Public Impact
Significant taxpayer investment in defense aircraft sustainment and program management. Impacts the aerospace and defense sector, specifically supporting aircraft maintenance and operational readiness. Long-term nature of the contract suggests a sustained need for these services within the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to cost overruns if not managed effectively.
- Potential for scope creep over the extended performance period.
- Reliance on a single contractor for critical program management and support.
Positive Signals
- Awarded through full and open competition.
- Significant value indicates a critical program for the DoD.
- Long performance period allows for stable planning and execution.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on program management and support services for aircraft. Spending in this area is crucial for maintaining military readiness and technological superiority. Benchmarks for similar large-scale, long-term support contracts are typically in the billions.
Small Business Impact
The data indicates the primary awardee is McDonnell Douglas Corporation, a large aerospace company. There is no explicit information provided regarding the involvement or subcontracting opportunities for small businesses within this contract.
Oversight & Accountability
The contract was awarded by the Department of Defense through the Defense Contract Management Agency. Oversight would involve ensuring performance, cost control, and adherence to contract terms throughout the extended period of performance.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration (over 13 years).
- High contract value ($2.84 billion).
- Awarded to a single large prime contractor.
- Potential for scope creep over an extended period.
- Services are critical for aircraft sustainment.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, dca, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.84 billion to THE BOEING COMPANY (0674). 199809!5700!0214!GD90 !OC-ALC/LKD (CLS AIRCRAFT) !F3460198C0125 !A!*!* !19980629!19990930!006265946!006265946!009256819!N!0PXV4!MCDONNELL DOUGLAS CORPORATION !LAMBERT ST LOUIS AIRPORT !SAINT LOUIS !MO!63103!31276!189!29!HAZELWOOD !ST. LOUIS !MISSOURI !0001!+000000119687!Y!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !A1A!AIRFRAMES AND SPARES !3ADB!C-10 !3728!3!*!*!*!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 $2.84 billion.
What is the period of performance?
Start: 1998-06-29. End: 2011-07-31.
What specific program management and support services are included in this $2.84 billion contract, and how do they contribute to the overall effectiveness of the CLS aircraft fleet?
The contract specifies 'PROGRAM MANAGEMENT/SUPPORT SERVICES' and 'AIRFRAMES AND SPARES' under the 'C-10' designation. These services are critical for ensuring the operational readiness, maintenance, and sustainment of the CLS aircraft fleet. Effective program management ensures efficient resource allocation, timely procurement of parts, and adherence to technical specifications, directly impacting the fleet's availability and mission capability.
Given the contract's long duration (1998-2011), what are the primary risks associated with cost control and potential obsolescence of technology or parts?
The primary risks include potential cost overruns due to inflation, unforeseen technical challenges, or changes in operational requirements over the 13-year period. Technological obsolescence is also a concern, as parts and systems may become outdated. Mitigation strategies would involve robust contract clauses for cost adjustments, regular reviews of technological advancements, and proactive planning for upgrades or replacements to maintain fleet effectiveness.
How does the 'full and open competition' award method ensure the best value and effectiveness for this substantial defense spending?
Full and open competition allows multiple qualified contractors to bid, fostering a competitive environment that typically drives down prices and encourages innovation. For this $2.84 billion contract, it suggests that the DoD received proposals from various entities, enabling selection of the offer that best balanced cost, technical merit, and performance capabilities, thereby maximizing the value and effectiveness of the investment in CLS aircraft support.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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 (UEI: 009256819)
Address: LAMBERT ST LOUIS AIRPORT, SAINT LOUIS, MO, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,558,869,886
Exercised Options: $2,558,869,886
Current Obligation: $2,840,819,576
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 1998-06-29
Current End Date: 2011-07-31
Potential End Date: 2011-07-31 00:00:00
Last Modified: 2012-09-06
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