Right I just tried the options myself.

Spoiler Alert, click show to read: 
He takes three drake scales to make the armour first time. It is basic alright. I hadn't slain the dragon then, so I simply gave him the remaining three drake scales. This time it was superior armour.
Finally, I killed the dragon and gave him the dragon scales, asked him to make massive dragon bone armour. This one isn't named superior or anything, simply 'Wade's <armour name>'......
The equipment apparently, is not scaled. I was afraid that it might be the same system as in Oblivion, where a special enchanted equipment you get at level 5, becomes useless by level 15......

BTW, the superman sword, what sort of stats does it have......I hate having the metal in my inventory and not being able to get it forged because I lack the DLC...