Naval Air Systems Command Awards $176.6M for F-18 Hornet Airframes and Spares to McDonnell Douglas

Contract Overview

Contract Amount: $176,655,565 ($176.7M)

Contractor: THE Boeing Company (0674)

Awarding Agency: Department of Defense

Start Date: 1997-10-02

End Date: 2008-12-31

Contract Duration: 4,108 days

Daily Burn Rate: $43.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 199805!1700!0194!AA4E0!NAVAL AIR SYSTEMS COMMAND !N0001997C0099 !A!*!* !19971002!19990930!006265946!006265946!009256819!N!76301!MCDONNELL DOUGLAS CORPORATION !LAMBERT ST LOUIS AIRPORT !SAINT LOUIS !MO!63103!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !0001!+000159408000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !2AFX!F-18 HORNET !3721!3!*!*!*!B!A!*!D !N!J!1!001!N!1A!A!W!A!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63134

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $176.7 million to THE BOEING COMPANY (0674) for work described as: 199805!1700!0194!AA4E0!NAVAL AIR SYSTEMS COMMAND !N0001997C0099 !A!*!* !19971002!19990930!006265946!006265946!009256819!N!76301!MCDONNELL DOUGLAS CORPORATION !LAMBERT ST LOUIS AIRPORT !SAINT LOUIS !MO!63103!65000!510!29!ST. LOUIS !ST. LO… Key points: 1. Contract awarded to McDonnell Douglas for F-18 Hornet airframes and spares. 2. The total value of the contract is $176.6 million. 3. The contract was not competed, raising potential concerns about price discovery. 4. This spending falls within the Defense sector, specifically for aircraft components.

Value Assessment

Rating: fair

The contract value of $176.6 million for aircraft airframes and spares appears substantial. Without specific unit cost data or benchmarks for F-18 components, a precise pricing assessment is difficult. However, the duration of the contract (over 10 years) suggests a potentially high overall expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers compared to a competitive bidding process. The absence of competition warrants further scrutiny.

Taxpayer Impact: The lack of competition for a contract of this magnitude could lead to suboptimal pricing, meaning taxpayers may be paying more than necessary for these aircraft components.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The long duration of the contract could indicate a sustained need for F-18 components. This award impacts the defense industrial base, specifically supporting the F-18 program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Long contract duration
Potential for overpricing

Positive Signals

Supports critical defense asset (F-18 Hornet)
Award to established defense contractor

Sector Analysis

This contract falls within the Defense sector, specifically for aircraft components (airframes and spares) for the F-18 Hornet. Defense spending on major weapon systems and their sustainment is a significant portion of the federal budget.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors on this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The sole-source nature of this award suggests that oversight mechanisms should be robust to ensure fair pricing and contract performance. The long duration also necessitates ongoing monitoring.

Related Government Programs

Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award lacks competition
Long contract duration may inflate total cost
Potential for price gouging without competitive pressure
Lack of transparency on unit costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $176.7 million to THE BOEING COMPANY (0674). 199805!1700!0194!AA4E0!NAVAL AIR SYSTEMS COMMAND !N0001997C0099 !A!*!* !19971002!19990930!006265946!006265946!009256819!N!76301!MCDONNELL DOUGLAS CORPORATION !LAMBERT ST LOUIS AIRPORT !SAINT LOUIS !MO!63103!65000!510!29!ST. LOUIS !ST. LOUIS (CITY) !MISSOURI !0001!+000159408000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !2AFX!F-18 HORNET !3721!3!*!*!*!B!A!*!D !N!J!1!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 $176.7 million.

What is the period of performance?

Start: 1997-10-02. End: 2008-12-31.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or the absence of other responsible sources capable of meeting the government's needs. For a critical defense asset like the F-18, there might be specific reasons related to production continuity or specialized expertise held by McDonnell Douglas at the time.

What is the average per-unit cost for the airframes and spares awarded under this contract?

The provided data does not include specific per-unit cost breakdowns for the airframes and spares. To determine this, one would need to access detailed contract line item numbers (CLINs) and quantities. Without this granular data, it's impossible to establish a precise per-unit cost benchmark against industry standards or historical data.

How does the total contract value compare to similar contracts for F-18 components awarded competitively?

Comparing this $176.6 million contract to competitively awarded contracts for similar F-18 components is challenging without access to a broader dataset of comparable procurements. Sole-source contracts often carry a price premium. A comprehensive analysis would require identifying and evaluating multiple competitive contracts for F-18 airframes and spares to establish a reliable benchmark.

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 (UEI: 009256819)

Address: 6200 J S MCDONNELL BLVD, SAINT LOUIS, MO, 90

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

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline