Navy awards $39.3M for helicopter parts, with a significant portion for rotor systems, to Maritime Helicopter Support Company

Contract Overview

Contract Amount: $39,312,022 ($39.3M)

Contractor: Maritime Helicopter Support Company LLC

Awarding Agency: Department of Defense

Start Date: 2003-12-30

End Date: 2005-09-30

Contract Duration: 640 days

Daily Burn Rate: $61.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: 200408!4P0939!1700!JA105 !NAVAL INVENTORY CONTROL POINT !N0038304D028N !A!N! !N!0001 ! !20031230!20040930!111018748!111018748!111018748!N!MARITIME HELICOPTER SUPPORT CO!9255 WELLINGTON ROAD !MANASSAS !VA!20110!74592!059!51!SPRINGFIELD !FAIRFAX !VIRGINIA !+000038910104!N!N!000000000000!1615!HELICOPTER ROTOR BLADES, DRIVE MECHANISMS & COMPON!A1A!AIRFRAMES AND SPARES !000 !* !336411!E! !5!A!S! ! ! !99990909!B! ! !B! !D!U!L!1!001!N!1G!A!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!A!N! ! ! ! ! !N00383!0001! !

Place of Performance

Location: MANASSAS, MANASSAS CITY County, VIRGINIA, 20110

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $39.3 million to MARITIME HELICOPTER SUPPORT COMPANY LLC for work described as: 200408!4P0939!1700!JA105 !NAVAL INVENTORY CONTROL POINT !N0038304D028N !A!N! !N!0001 ! !20031230!20040930!111018748!111018748!111018748!N!MARITIME HELICOPTER SUPPORT CO!9255 WELLINGTON ROAD !MANASSAS !VA!20110!74592!059!51!SPRINGFIELD !FAIR… Key points: 1. The contract value of $39.3 million for helicopter parts represents a substantial investment in aviation readiness. 2. The primary focus on rotor blades and drive mechanisms indicates a critical need for operational helicopter availability. 3. The contract's duration of 640 days suggests a sustained requirement for these specialized components. 4. The fixed-price incentive contract type aims to balance cost control with contractor performance. 5. The award to a single entity raises questions about the extent of market research and potential for competitive pricing. 6. The geographic location of the contractor in Virginia may influence local economic impact and supply chain considerations.

Value Assessment

Rating: fair

The total award of $39.3 million for helicopter parts, specifically rotor blades and drive mechanisms, appears to be a significant expenditure. Benchmarking this against similar contracts for specialized aviation components is challenging without more detailed cost breakdowns. However, the fixed-price incentive structure suggests an attempt to manage costs while ensuring performance. The lack of competitive bidding, as indicated by the contract type, may mean that the pricing has not been rigorously tested against market alternatives, potentially leading to a less optimal value for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices through market forces. The decision to sole-source this significant award warrants further examination to ensure that all avenues for competition were explored.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying a premium for goods and services, as the pricing has not been validated through a competitive process. This can lead to less efficient use of public funds.

Public Impact

The primary beneficiaries are the U.S. Navy's aviation units, ensuring the operational readiness of their helicopter fleet. The contract delivers essential components, including rotor blades and drive mechanisms, critical for helicopter maintenance and flight operations. The geographic impact is concentrated around the contractor's location in Manassas, Virginia, potentially supporting local jobs and businesses. The workforce implications include the need for skilled labor in manufacturing, quality control, and logistics to fulfill this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices than a fully competed contract.
Sole-source awards can reduce transparency and accountability in government spending.
Reliance on a single supplier could create supply chain vulnerabilities.
The fixed-price incentive structure requires careful monitoring to ensure contractor performance meets expectations.

Positive Signals

The award ensures the availability of critical helicopter components, supporting military readiness.
The fixed-price incentive contract type aims to align contractor incentives with government objectives.
The contractor's location in Virginia may provide regional economic benefits.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity and significant government procurement. This contract falls within the 'Aircraft Manufacturing' industry, specifically focusing on airframes and spares. The market for specialized helicopter components is often concentrated among a few key suppliers due to stringent quality and certification requirements. The $39.3 million award is a notable sum within this niche, reflecting the high cost of advanced aviation parts and the critical nature of maintaining operational fleets.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award to Maritime Helicopter Support Company LLC, a single entity, does not explicitly detail subcontracting plans for small businesses. Without specific set-aside requirements or transparent subcontracting goals, the direct impact on the small business ecosystem for this particular contract is unclear. Further analysis would be needed to determine if small businesses are involved in the supply chain for these specialized helicopter components.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a sole-source award, scrutiny may be higher to ensure the justification for non-competition is sound and that pricing is fair and reasonable. Transparency is limited due to the lack of a competitive bidding process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Navy Helicopter Maintenance Programs
Department of Defense Aviation Spares Procurement
Aircraft Component Manufacturing Contracts
Fixed-Price Incentive Contracts
Sole-Source Defense Acquisitions

Risk Flags

Sole-source award lacks competitive pricing validation.
Potential for higher costs due to non-competitive nature.
Limited transparency in the procurement process.
Reliance on a single supplier may pose supply chain risks.
Need for robust oversight to ensure fair pricing and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.3 million to MARITIME HELICOPTER SUPPORT COMPANY LLC. 200408!4P0939!1700!JA105 !NAVAL INVENTORY CONTROL POINT !N0038304D028N !A!N! !N!0001 ! !20031230!20040930!111018748!111018748!111018748!N!MARITIME HELICOPTER SUPPORT CO!9255 WELLINGTON ROAD !MANASSAS !VA!20110!74592!059!51!SPRINGFIELD !FAIRFAX !VIRGINIA !+000038910104!N!N!000000000000!1615!HELICOPTER ROTOR BLADES, DRIVE MECHANISMS & COMPON!A1A!AIRFRAMES AND SPARES !000 !* !336411!E! !5!A!S! ! ! !999

Who is the contractor on this award?

The obligated recipient is MARITIME HELICOPTER SUPPORT COMPANY LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $39.3 million.

What is the period of performance?

Start: 2003-12-30. End: 2005-09-30.

What is the track record of Maritime Helicopter Support Company LLC in fulfilling defense contracts, particularly for helicopter components?

Maritime Helicopter Support Company LLC has a history of receiving contracts from the Department of Defense, primarily for aviation parts and support services. While specific details on past performance for similar high-value rotor system components are not immediately available from this data snippet, their consistent engagement with the Navy suggests a level of established capability. Further investigation into their contract history, including past performance reviews and any reported issues, would be necessary to fully assess their reliability and expertise in delivering critical helicopter parts.

How does the awarded price of $39.3 million compare to market rates for similar helicopter rotor blades and drive mechanisms?

Directly comparing the $39.3 million award to precise market rates for these specialized helicopter components is difficult without detailed cost breakdowns and specific part numbers. However, given the sole-source nature of the award and the critical, high-specification requirements for military aviation parts, the price could be at a premium compared to commercial equivalents or prices achievable through full and open competition. Benchmarking would require access to proprietary pricing data from multiple suppliers or historical data on similar sole-source awards.

What are the primary risks associated with this sole-source award for helicopter components?

The primary risks associated with this sole-source award include potential overpayment due to the lack of competitive pricing, reduced incentive for the contractor to innovate or reduce costs over time, and potential supply chain vulnerabilities if Maritime Helicopter Support Company LLC faces production issues or financial instability. There's also a risk that the government may not be aware of more cost-effective alternative solutions or suppliers that could have emerged from a competitive process. Ensuring robust oversight and performance monitoring is crucial to mitigate these risks.

How effective is the fixed-price incentive (FPI) contract type in ensuring value for money in this specific case?

The Fixed-Price Incentive (FPI) contract type aims to provide value by sharing cost savings or overruns between the government and the contractor. In this case, it suggests that there was an initial target cost and price, with adjustments based on the final cost. This structure can incentivize the contractor to control costs while meeting performance specifications. However, the effectiveness in ensuring value for money is heavily dependent on the realism of the initial target cost and the negotiation of the sharing ratio. Without knowing these details, and given the sole-source nature, it's difficult to definitively assess its value-for-money effectiveness compared to other contract types or competitive scenarios.

What are the historical spending patterns for helicopter parts by the Department of the Navy, and how does this award fit within them?

The Department of the Navy historically spends billions of dollars annually on aviation parts, maintenance, and support, reflecting the large size and operational tempo of its fleet. Awards for critical components like rotor systems are a significant and recurring part of this spending. This $39.3 million award for helicopter parts appears to be a substantial, but not necessarily anomalous, expenditure within the broader context of Navy aviation sustainment. Understanding the specific types of helicopters and the frequency of part replacement would provide further context on whether this award represents a typical or elevated level of spending for this category.

What due diligence was performed to justify the sole-source award to Maritime Helicopter Support Company LLC?

Justifying a sole-source award typically involves demonstrating that only one responsible source can provide the required supplies or services, or that there's a compelling urgency that precludes full and open competition. For this contract, the Department of the Navy would have needed to conduct market research to confirm the lack of viable alternatives or document the specific circumstances necessitating a sole-source approach. This could involve technical unique requirements, proprietary technology, or a critical, time-sensitive need where no other vendor could respond adequately. The specific documentation supporting this justification would be key to assessing the thoroughness of the due diligence.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 2655 INTERPLEX DRIVE SUITE 103, TREVOSE, PA, 19053

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $151,918

Exercised Options: $151,918

Current Obligation: $39,312,022

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0038304D028N

IDV Type: IDC

Timeline