DoD's $17M McDonnell Douglas Helicopter Contract: Engineering Services Awarded Sole-Source

Contract Overview

Contract Amount: $17,064,266 ($17.1M)

Contractor: Mcdonnell Douglas Helicopter Company

Awarding Agency: Department of Defense

Start Date: 2005-09-30

End Date: 2011-12-31

Contract Duration: 2,283 days

Daily Burn Rate: $7.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Place of Performance

Location: MESA, MARICOPA County, ARIZONA, 85215

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $17.1 million to MCDONNELL DOUGLAS HELICOPTER COMPANY for work described as: Key points: 1. Significant contract value of $17.06 million. 2. Sole-source award indicates limited competition. 3. Potential risk associated with lack of competitive bidding. 4. Engineering services sector, crucial for defense capabilities.

Value Assessment

Rating: questionable

The contract value of $17.06 million for engineering services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no competition was sought. This significantly limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition in this sole-source award raises concerns about potential overspending and reduced value for taxpayer funds.

Public Impact

Taxpayers may have paid a premium due to the absence of competitive bidding. The sole-source nature limits transparency in the procurement process. Essential engineering services for defense may have been procured at a non-optimal price.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Essential defense engineering services
Long contract duration

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for the Department of Defense's technological advancements and operational readiness. Benchmarks for similar sole-source engineering contracts are difficult to establish without more data.

Small Business Impact

The data does not indicate any specific benefits or set-asides for small businesses in this sole-source award.

Oversight & Accountability

Oversight of sole-source contracts is critical to ensure fair pricing and prevent waste. The Defense Contract Management Agency's role in monitoring this award is important for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to MCDONNELL DOUGLAS HELICOPTER COMPANY. See the official description on USAspending.

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 $17.1 million.

What is the period of performance?

Start: 2005-09-30. End: 2011-12-31.

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

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent needs that preclude a competitive process. Without specific documentation, the exact reason remains unclear.

What steps were taken to mitigate the risks associated with a sole-source procurement?

Mitigation strategies for sole-source procurements often include rigorous negotiation of terms and pricing, independent cost analysis, and thorough review of the contractor's capabilities and past performance. The agency should have ensured that the negotiated price was fair and reasonable, even without competition.

How does the $17.06 million expenditure align with typical spending for similar engineering services in the defense sector?

Without specific details on the scope of services and the duration, it's challenging to benchmark this $17.06 million expenditure. However, for sole-source contracts, the risk of misalignment with market rates is higher. A detailed cost breakdown and comparison to industry standards would be necessary for a proper assessment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: 5000 E MCDOWELL RD, MESA, AZ, 04

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

Contract Characteristics

Cost or Pricing Data: YES

Timeline