Naval Aviation Support Contract Valued at $42.2M Awarded to Maritime Helicopter Support Company LLC

Contract Overview

Contract Amount: $42,169,442 ($42.2M)

Contractor: Maritime Helicopter Support Company LLC

Awarding Agency: Department of Defense

Start Date: 2009-01-29

End Date: 2015-02-11

Contract Duration: 2,204 days

Daily Burn Rate: $19.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: H60 PBL- NAVAL AVIATION

Place of Performance

Location: WOODBRIDGE, PRINCE WILLIAM County, VIRGINIA, 22192, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $42.2 million to MARITIME HELICOPTER SUPPORT COMPANY LLC for work described as: H60 PBL- NAVAL AVIATION Key points: 1. Contract awarded for performance-based logistics (PBL) for naval aviation, indicating a focus on outcomes and readiness. 2. The contract's duration of over 2200 days suggests a long-term commitment to sustainment services. 3. Sole-source award raises questions about potential lack of competition and its impact on pricing. 4. The significant value of the contract warrants scrutiny of performance metrics and value for money. 5. The specific nature of helicopter support implies a critical role in naval operations. 6. Virginia-based contractor suggests potential regional economic impact and workforce implications.

Value Assessment

Rating: fair

Benchmarking the value of this $42.2 million contract is challenging without specific performance metrics or comparable sole-source awards. The firm-fixed-price structure suggests the government has defined deliverables, but the lack of competition means there's no direct price comparison to assess if the government secured the best possible value. The long duration implies a sustained need, but the absence of competitive bidding prevents a definitive assessment of cost-effectiveness against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach is typically used when a unique capability or proprietary technology is required, or in cases of urgent need where competition is not feasible. The lack of multiple bidders limits the government's ability to leverage competitive pressures to drive down costs and ensure the most advantageous pricing. It also raises questions about whether alternative solutions or contractors were adequately explored.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the benefit of competitive bidding is forgone. Without competition, there is less incentive for the contractor to offer the lowest possible price.

Public Impact

Naval aviation units benefit from sustained support for critical helicopter platforms, enhancing operational readiness. The contract ensures the availability of essential maintenance, repair, and logistics services for naval helicopters. Services are likely concentrated in areas supporting naval aviation bases, potentially impacting the Virginia region. The contract supports specialized technical roles within the defense industrial base, potentially sustaining a skilled workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of transparency in the sole-source justification process could obscure potential alternatives.
Long contract duration without competitive re-evaluation may lead to price creep over time.
Performance-based logistics can be complex to manage and ensure true value for money is achieved.

Positive Signals

Performance-based logistics (PBL) aims to incentivize contractor performance and improve readiness.
Firm-fixed-price contract provides cost certainty for the government once terms are established.
Long-term nature of the contract suggests a stable and reliable support solution for naval aviation.
Focus on helicopter support addresses a critical component of naval operational capabilities.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on sustainment and logistics for naval aviation. The market for helicopter support services is specialized, often involving original equipment manufacturers or authorized service providers due to technical complexity and proprietary knowledge. The value of this contract, while significant, represents a portion of the overall defense spending on aviation readiness and maintenance, which is a critical component of national security budgets.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, is not explicitly provided in the data. As a sole-source award, the typical mechanisms for ensuring small business involvement through competitive bidding are absent. Further investigation would be needed to determine if any small business subcontracting opportunities were mandated or voluntarily pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a sole-source award, the justification and approval process would be subject to specific federal acquisition regulations and potentially internal agency reviews. Transparency regarding performance metrics and contractor adherence to the firm-fixed-price terms would be key areas for oversight. The Inspector General of the Department of Defense may also have jurisdiction for audits and investigations.

Related Government Programs

Naval Aviation Maintenance Programs
Defense Logistics Agency (DLA) Aviation Support
Helicopter Fleet Readiness Programs
Performance-Based Logistics (PBL) Contracts
Aerospace Sustainment Services

Risk Flags

Sole-source award may indicate limited competition, potentially impacting price.
Lack of detailed performance metrics in summary data hinders value assessment.
Contract duration is substantial, requiring ongoing oversight.
Specific platforms supported are not identified, limiting impact analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.2 million to MARITIME HELICOPTER SUPPORT COMPANY LLC. H60 PBL- NAVAL AVIATION

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 $42.2 million.

What is the period of performance?

Start: 2009-01-29. End: 2015-02-11.

What specific naval aviation platforms does this contract support, and what is the criticality of these platforms to current naval operations?

The provided data does not specify the exact naval aviation platforms supported by this contract, only that it pertains to 'NAVAL AVIATION' and 'MARITIME HELICOPTER SUPPORT'. Maritime helicopters are crucial for a range of naval operations including anti-submarine warfare (ASW), search and rescue (SAR), troop transport, reconnaissance, and utility missions. Platforms could include helicopters like the MH-60R Seahawk (for ASW and surface warfare) or the MH-60S Seahawk (for combat support and special operations). The criticality lies in their versatility and essential role in maintaining naval presence, power projection, and operational effectiveness across various theaters of operation. Without specific platform identification, a precise assessment of criticality is limited, but any contract supporting these vital assets is inherently significant to fleet readiness.

Can the value of this contract be benchmarked against similar sole-source awards for helicopter support services in the defense sector?

Benchmarking this $42.2 million contract against similar sole-source awards for helicopter support services is difficult without more specific details on the scope of work, duration, and the specific platforms supported. Sole-source contracts inherently lack direct price competition, making external comparisons less reliable. However, the contract's duration of approximately 6 years (2204 days) suggests a substantial, long-term sustainment effort. Generally, large-scale sustainment contracts for complex military platforms can range from tens to hundreds of millions of dollars over their lifecycle. The 'fair' rating reflects the inherent uncertainty in value assessment due to the sole-source nature. A more robust comparison would require access to classified or internal government cost data for similar sole-source procurements or detailed breakdowns of the services provided under this contract.

What are the key performance indicators (KPIs) associated with this performance-based logistics (PBL) contract, and how is contractor performance being measured?

The provided data indicates this is a Performance-Based Logistics (PBL) contract, which implies that the contractor, Maritime Helicopter Support Company LLC, is being compensated based on achieving specific performance outcomes rather than just delivering goods or services. However, the specific Key Performance Indicators (KPIs) are not detailed in the available information. Typically, for helicopter support PBLs, KPIs might include metrics such as aircraft availability rates, turnaround times for repairs, supply chain responsiveness, parts availability, and overall mission capable rates for the supported platforms. The effectiveness of the contract hinges on how well these KPIs are defined, measured, and enforced by the Department of the Navy to ensure value for money and operational readiness.

What is the historical spending pattern for naval aviation helicopter support, and how does this contract fit within that trend?

The provided data only includes details for this specific contract (awarded 2009, ending 2015) and does not offer historical spending patterns for naval aviation helicopter support. To understand the trend, one would need to analyze aggregate spending data from the Department of the Navy or Department of Defense over multiple fiscal years for similar services. This contract, valued at approximately $42.2 million over its ~6-year duration, represents a moderate investment in sustainment for a specific capability. Without broader context, it's difficult to definitively state if this contract aligns with or deviates from historical spending trends. Factors like fleet size, operational tempo, and technological upgrades significantly influence such spending patterns.

What is the justification for awarding this contract on a sole-source basis, and were any alternative sources considered?

The data indicates this contract was awarded as 'NOT COMPETED' (sole-source). Federal Acquisition Regulation (FAR) Part 6 outlines the policies and procedures for competitive contracting and the exceptions under which a contract may be awarded without full and open competition. Common justifications for sole-source awards include the existence of only one responsible source, a national emergency, or when the property or services must be acquired from a sole manufacturer or contractor because of a unique or specialized capability. The specific justification for this $42.2 million naval aviation support contract is not provided. Typically, agencies must document the rationale and conduct market research to ensure no other sources are capable of meeting the requirement before proceeding with a sole-source award. Without this documentation, it's impossible to confirm if alternatives were considered or if the sole-source justification was robust.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Office Machinery 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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2510 HUNTER PL STE 201 & 202, WOODBRIDGE, VA, 22192

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

Financial Breakdown

Contract Ceiling: $42,169,442

Exercised Options: $42,169,442

Current Obligation: $42,169,442

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0038309D010F

IDV Type: IDC

Timeline