Navy's $162M Seahawk Helicopter Support Contract Lacks Competition, Raises Value Concerns

Contract Overview

Contract Amount: $162,285,512 ($162.3M)

Contractor: Maritime Helicopter Support Company LLC

Awarding Agency: Department of Defense

Start Date: 2015-03-01

End Date: 2015-09-30

Contract Duration: 213 days

Daily Burn Rate: $761.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NAVY H60 SEAHAWK PBL FOR LOGISTICS SUPPORT OF APPROXIMATELY 1720 WEAPON REPLACEABLE ASSEMBLIES/SHOP REPLACEABLE ASSEMBLIES.

Place of Performance

Location: FEASTERVILLE TREVOSE, BUCKS County, PENNSYLVANIA, 19053

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $162.3 million to MARITIME HELICOPTER SUPPORT COMPANY LLC for work described as: NAVY H60 SEAHAWK PBL FOR LOGISTICS SUPPORT OF APPROXIMATELY 1720 WEAPON REPLACEABLE ASSEMBLIES/SHOP REPLACEABLE ASSEMBLIES. Key points: 1. Contract awarded for logistics support of 1720 weapon/shop replaceable assemblies for the H60 Seahawk. 2. Significant spending on aircraft parts, with potential for higher costs due to lack of competition. 3. Risk of inflated pricing and reduced value for taxpayer dollars due to sole-source award. 4. Sector context: Defense aviation maintenance is critical but often complex and costly.

Value Assessment

Rating: questionable

The contract's value of $162.3M for logistics support is difficult to assess without competitive benchmarks. The lack of competition suggests potential for overpricing compared to market rates for similar support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government as there is no competitive pressure to offer the best price.

Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for essential helicopter support services.

Public Impact

Taxpayers may be overpaying for critical helicopter parts and support due to a lack of competitive bidding. The Navy's operational readiness could be impacted if the sole-source provider cannot deliver cost-effectively. Lack of transparency in pricing for specialized aviation components can obscure true market value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Positive Signals

Supports critical defense asset (H60 Seahawk)
Firms up logistics support

Sector Analysis

This contract falls within the Defense sector, specifically supporting naval aviation. Spending on aircraft parts and maintenance is substantial across the DoD, with performance-based logistics (PBL) contracts aiming for long-term cost efficiencies, though competition is key.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went to a specific company, Maritime Helicopter Support Company LLC, suggesting a focus on established prime providers.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and effective service delivery. Future contract actions should explore competitive avenues to maximize value and accountability.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited oversight on price discovery
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $162.3 million to MARITIME HELICOPTER SUPPORT COMPANY LLC. NAVY H60 SEAHAWK PBL FOR LOGISTICS SUPPORT OF APPROXIMATELY 1720 WEAPON REPLACEABLE ASSEMBLIES/SHOP REPLACEABLE ASSEMBLIES.

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 $162.3 million.

What is the period of performance?

Start: 2015-03-01. End: 2015-09-30.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where competition is not feasible. Agencies must still conduct market research and negotiate pricing rigorously to ensure it is fair and reasonable, often comparing to historical data or industry benchmarks, though the absence of competing bids inherently limits this process.

How does the lack of competition potentially impact the long-term cost-effectiveness of supporting the H60 Seahawk fleet?

A lack of competition can lead to sustained higher costs over the contract's life. Without competitive pressure, the contractor may have less incentive to innovate or reduce prices. This can result in the government paying a premium for parts and services, potentially exceeding what could be achieved through a competitive bidding process.

What are the risks associated with relying on a single provider for critical weapon replaceable assemblies and logistics support?

Risks include potential supply chain disruptions if the sole provider faces issues, lack of flexibility in adapting to changing needs, and vulnerability to price increases. Furthermore, the government has limited leverage to demand better performance or pricing, potentially impacting operational readiness and budget predictability.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

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: $162,285,512

Exercised Options: $162,285,512

Current Obligation: $162,285,512

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $258,821,455

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0038315D008F

IDV Type: IDC

Timeline