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FACT SHEET

Small Business and Small Disadvantaged Business Subcontracting Plan Goals

1. Contractor: McDonnell-Douglas Company

2. Contractor address (City, State): St. Louis, MO

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5. Brief narrative explaining why the contracting officer determined the goals were sufficient:

Due to the complexity of the aircraft, a substantial portion of the subcontract dollars are for highly sophisticated avionics whose production requires substantial investment. Few small business and small disadvantaged business firms have the resources for such an investment. This limits the work available for subcontracting to these firms, primarily in the categories of castings and forgings, raw materials, machined parts, and small dollar Contractor Furnished Equipment (CFE). The goals represent a significant portion of the amounts actually available and were accepted as sufficient on that basis.

FACT SHEET

Small Business and Small Disadvantaged Business Subcontracting Plan Goals

1. Contractor: McDonnell-Douglas Company

2. Contractor address (City, State): St. Louis, MO

3. Contract No: N00019-82-C-0501

4. Brief description of supplies or services:

FA-18A Aircraft Weapon System

5. Brief narrative explaining why the contracting officer determined the goals were sufficient.

The goals were generated by identifying known large, small and small disadvantaged sources. If actual sources were not known, historically developed ratios were applied to the various categories of requirements to develop estimates of small and small disadvantaged business participation.

1. Question: 2 years?

Responses to Questions Submitted for the Record

Regarding Consolidated Contracts

(Committee Letter of April 30, 1984)

How many consolidated contracts have you awarded over the past

Answer: The Navy awarded 14 consolidated contracts during the period June 1, 1982 through May 15, 1984. (Consolidated has been deemed to mean that two or more Commercial Activities (CA) type functions are contained in the contract for purposes of this response).

2. Question: How many consolidated contracts have been awarded since the issuance of revised OMB Circular A-76?

Answer: Revised OMB Circular A-76 was issued on August 4, 1983. Since that time seven consolidated contracts have been awarded by the Navy (five to small businesses and two to large businesses). It should be noted, however, that the Department of Defense (DOD) implemented Parts II, III and IV of the Supplement to the revised A-76 Circular on March 20, 1984 and the Navy followed with its implementation of these parts on March 27, 1984. Since then the Navy awarded one consolidated contract. The Circular itself, and Part I of the Supplement entitled "Policy Implementation" which contains guidance with respect to small and small disadvantaged businesses, have not yet been formally implemented within DOD.

3. Answers with respect to questions on each consolidated contract attached.

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Enclosure (2)

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CONSOLIDATED CONTRACTS AWARDED BY THE DEPARTMENT OF THE NAVY (CONTINUED)

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