DoD's $187M Naval Aviation Contract Awarded to Maritime Helicopter Support Company LLC

Contract Overview

Contract Amount: $187,204,527 ($187.2M)

Contractor: Maritime Helicopter Support Company LLC

Awarding Agency: Department of Defense

Start Date: 2010-12-31

End Date: 2011-09-30

Contract Duration: 273 days

Daily Burn Rate: $685.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NAVAL AVIATION

Place of Performance

Location: WOODBRIDGE, PRINCE WILLIAM County, VIRGINIA, 22192

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $187.2 million to MARITIME HELICOPTER SUPPORT COMPANY LLC for work described as: NAVAL AVIATION Key points: 1. Contract awarded for critical naval aviation support services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Significant duration of contract performance period. 4. Focus on specialized aircraft parts manufacturing. 5. Contract falls under the Defense Contract Management Agency's purview. 6. Firm Fixed Price contract type indicates defined cost expectations.

Value Assessment

Rating: questionable

The contract's value of $187.2 million for a 273-day period is substantial. Without comparable sole-source contracts for similar specialized naval aviation support, it is difficult to benchmark the value for money. The firm fixed-price structure suggests an attempt to control costs, but the lack of competition means there was no market pressure to drive down prices. Further analysis of the specific services rendered and the contractor's historical pricing would be needed for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Maritime Helicopter Support Company LLC, was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they limit the government's ability to explore a wider range of pricing and solutions. The absence of competition means potential cost savings that could arise from multiple bidders vying for the contract were not realized.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to ensure the lowest possible price. This contract represents a significant expenditure without the benefit of market-driven price discovery.

Public Impact

Naval aviation operations benefit from the specialized support provided. The contract ensures the availability of critical aircraft parts. Services are likely concentrated in areas supporting naval aviation bases. Potential impact on the specialized workforce within the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Sole-source nature limits transparency in cost determination.
Potential for vendor lock-in due to specialized nature of services.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Award to a specialized company suggests access to unique capabilities.
Contract supports critical national defense functions.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on the manufacturing and supply of aircraft parts and auxiliary equipment. The market for such specialized components is often characterized by high barriers to entry due to technical expertise, certifications, and established supply chains. Spending in this area is critical for maintaining the operational readiness of military aviation fleets. Comparable spending benchmarks would typically involve analyzing other contracts for similar specialized parts or support services across different military branches.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not provided for this contract. As a sole-source award, it is less likely to have been specifically targeted for small business participation through set-aside mechanisms. However, the prime contractor may still engage small businesses for subcontracting opportunities, depending on the nature of the services and parts required. Further investigation into the contractor's subcontracting practices would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would fall under the Department of Defense, likely managed by the Defense Contract Management Agency (DCMA). The firm fixed-price contract type provides a degree of accountability by establishing a ceiling on costs. Transparency regarding the justification for the sole-source award and the specific performance metrics would be key areas for oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Naval Aviation Maintenance
Aircraft Parts Manufacturing
Defense Logistics Support
Maritime Operations Support

Risk Flags

Sole-source award lacks competitive pricing.
Potential for overpayment without market comparison.
Limited transparency on justification for sole-source.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $187.2 million to MARITIME HELICOPTER SUPPORT COMPANY LLC. 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $187.2 million.

What is the period of performance?

Start: 2010-12-31. End: 2011-09-30.

What specific naval aviation platforms or systems does this contract support?

The provided data indicates the contract is for 'NAVAL AVIATION' and falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code (336413). While the specific platforms are not detailed, this suggests the contract is for parts and support related to helicopters or other aircraft critical to naval operations. Given the contractor's name, 'MARITIME HELICOPTER SUPPORT COMPANY LLC,' it is highly probable that the contract's primary focus is on supporting maritime helicopters used by the Navy or other maritime forces. These could include platforms like the MH-60 Seahawk, CH-53 Sea Stallion/Super Stallion, or other specialized naval rotorcraft.

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

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, urgent and compelling needs, or a lack of adequate competition. For this contract, awarded to 'MARITIME HELICOPTER SUPPORT COMPANY LLC,' the justification likely relates to specialized knowledge, proprietary parts, or specific support services essential for maritime helicopters that only this contractor can provide. Without access to the official sole-source justification documentation (e.g., a Justification and Approval document), the precise reasons remain speculative. However, the specialized nature of maritime helicopter support often involves unique technical expertise and parts that are not readily available from multiple sources.

How does the contract's value compare to similar sole-source awards for aviation support?

Benchmarking the $187.2 million value of this contract against similar sole-source awards for aviation support is challenging without more specific details on the services rendered and the platforms supported. Sole-source contracts inherently lack direct price competition, making external comparisons difficult. However, the value is substantial, suggesting a significant scope of work or high-value specialized components. To assess value, one would ideally compare it to other sole-source contracts for similar specialized parts or maintenance for naval aviation assets, considering factors like contract duration, complexity, and the criticality of the supported systems. The absence of competitive bidding means that the government did not benefit from market forces that typically drive down prices.

What are the potential risks associated with a sole-source contract of this magnitude?

A primary risk associated with a sole-source contract of this magnitude ($187.2 million) is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may pay more than it would in a fully competed scenario. Another risk is vendor lock-in, where the government becomes dependent on a single supplier for critical parts or services, potentially limiting future flexibility and negotiation power. Furthermore, the absence of competitive pressure might reduce incentives for the contractor to innovate or improve efficiency. Ensuring robust oversight and thorough negotiation of terms is crucial to mitigate these risks.

What is the historical spending pattern for naval aviation support from this contractor or similar entities?

Historical spending data for 'MARITIME HELICOPTER SUPPORT COMPANY LLC' specifically for this contract or similar services is not provided in the initial data. To analyze historical spending patterns, one would need to access contract databases (like FPDS or SAM.gov) to review past awards to this specific company and other companies providing similar maritime helicopter support. This analysis would reveal trends in contract values, competition levels (sole-source vs. competed), and the duration of awards. Understanding historical spending helps in assessing whether current contract values are consistent with past performance and market conditions, and whether there's a pattern of sole-source awards that warrants further scrutiny.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: OFFICE MACH/TEXT PROCESS/VISIB REC

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $187,760,598

Exercised Options: $187,760,598

Current Obligation: $187,204,527

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $194,257,008

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0038311D003F

IDV Type: IDC

Timeline