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

Contract Overview

Contract Amount: $42,216,480 ($42.2M)

Contractor: Maritime Helicopter Support Company LLC

Awarding Agency: Department of Defense

Start Date: 2009-04-27

End Date: 2015-02-11

Contract Duration: 2,116 days

Daily Burn Rate: $20.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: H60 PBL- NAVAL AVAITION

Place of Performance

Location: WOODBRIDGE, PRINCE WILLIAM County, VIRGINIA, 22193

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 AVAITION Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract was not competed, raising questions about potential price efficiencies. 3. Performance period spans over six years, suggesting a long-term need for these services. 4. The award was a delivery order under a larger contract, details of which are not fully specified. 5. The North American Industry Classification System (NAICS) code points to office machinery manufacturing, which may not directly align with helicopter support services. 6. The contract was awarded to a single vendor, limiting opportunities for competitive pricing.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bidding and the potentially misaligned NAICS code. The firm-fixed-price structure provides cost certainty, but without comparison to market rates or other bids, it's difficult to assess if the $42.2 million represents good value for money. The absence of competition suggests that the government may not have secured the most advantageous pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach limits the number of potential bidders and can reduce the pressure on pricing. Without a competitive process, it is difficult to ascertain the true market price for these services or if alternative solutions were considered.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price discovery mechanisms inherent in a competitive bidding process.

Public Impact

The primary beneficiaries are the U.S. Navy's aviation programs, ensuring continued support for critical assets. Services delivered likely include maintenance, repair, overhaul, or logistical support for naval helicopters. The geographic impact is primarily within the Department of the Navy's operational areas, potentially worldwide. Workforce implications could involve specialized technical personnel required for helicopter maintenance and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated prices.
The NAICS code 'Office Machinery Manufacturing' appears incongruent with 'Naval Aviation Support', raising concerns about the accuracy of contract classification and potential misallocation of funds.
Limited transparency due to sole-source award makes it difficult to assess contractor performance and value.
The contract duration of over six years without re-competition could lead to vendor lock-in and reduced innovation.

Positive Signals

Firm-fixed-price contract provides cost predictability for the government.
The contract supports critical naval aviation assets, ensuring operational readiness.
The award was made to a single, presumably qualified, vendor for specialized services.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aviation support services. The market for such specialized support is often characterized by a limited number of highly qualified contractors. While the NAICS code suggests office machinery, the description points to a niche within defense logistics and maintenance. Comparable spending benchmarks are difficult to establish without more detailed service descriptions and competitive data.

Small Business Impact

There is no indication that this contract included small business set-asides. Given the specialized nature of naval aviation support, it is likely that the prime contractor is a large business. Subcontracting opportunities for small businesses may exist, but without further details on the contract's structure and the prime contractor's subcontracting plan, their impact is unclear.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of the Navy contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specific services at an agreed-upon price. Transparency is limited due to the sole-source nature of the award, making independent assessment of value and performance more challenging.

Related Government Programs

Naval Aviation Maintenance
Helicopter Support Services
Defense Logistics Contracts
Department of the Navy Procurement
Sole-Source Defense Contracts

Risk Flags

Potential price inflation due to sole-source award.
Incongruent NAICS code raises concerns about contract classification and oversight.
Limited transparency regarding service details and performance metrics.
Risk of vendor lock-in due to long-term, non-competed award.

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 AVAITION

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: 2009-04-27. End: 2015-02-11.

What specific services were provided under this $42.2 million contract for Naval Aviation Support?

The provided data indicates the contract was for 'H60 PBL- NAVAL AVAITION' and awarded to 'MARITIME HELICOPTER SUPPORT COMPANY LLC' with a North American Industry Classification System (NAICS) code of '333313' (Office Machinery Manufacturing). However, the specific services rendered are not detailed. Given the description and the contractor's name, it is highly probable that the services involved support, maintenance, repair, or overhaul for the H-60 series naval helicopters. The incongruent NAICS code suggests a potential misclassification or a very specialized aspect of the support that relates tangentially to machinery components. Further investigation into the contract's statement of work would be required to ascertain the precise nature of the services.

How does the $42.2 million contract value compare to similar naval aviation support contracts?

Direct comparison of the $42.2 million contract value to similar naval aviation support contracts is difficult without more specific information on the services provided and the contract's duration. The contract spanned from April 27, 2009, to February 11, 2015, a period of approximately 6 years. This equates to an average annual value of roughly $7 million. Naval aviation support can encompass a wide range of services, from depot-level maintenance and component repair to logistics and training. Larger, more comprehensive support contracts for entire fleets or major platform types can easily run into hundreds of millions or even billions of dollars. Conversely, smaller, specialized support for a specific component or a limited number of aircraft could be in the low millions. Without knowing the scope and scale of services Maritime Helicopter Support Company LLC provided, a precise benchmark is not feasible.

What are the primary risks associated with this sole-source, firm-fixed-price contract?

The primary risks associated with this contract stem from its sole-source nature and the potential for price inflation. Without competition, the government lacks the leverage to negotiate the best possible price, potentially leading to overpayment. There's also a risk of vendor lock-in, where the government becomes dependent on a single provider, potentially stifling innovation and reducing flexibility. Furthermore, the apparent mismatch between the NAICS code (Office Machinery Manufacturing) and the contract description (Naval Aviation Support) raises concerns about the accuracy of the contract's classification and oversight, potentially masking inefficiencies or inappropriate use of funds. The firm-fixed-price structure mitigates cost overrun risk for the government but does not guarantee value for money if the initial price was not competitive.

What is the track record of Maritime Helicopter Support Company LLC in performing government contracts?

The provided data indicates that Maritime Helicopter Support Company LLC was awarded this specific $42.2 million contract for Naval Aviation Support. However, it does not offer details about their overall track record, past performance on other government contracts, or their history with the Department of the Navy. To assess their track record, one would need to examine contract databases for other awards, performance reviews (if publicly available), and any reported issues or successes. Without this additional information, it's impossible to provide a comprehensive assessment of their performance history beyond this single contract award.

How does the contract's duration and value align with typical support cycles for naval aviation assets?

The contract duration of approximately 6 years (April 2009 - February 2015) for a value of $42.2 million is plausible for supporting naval aviation assets, particularly for specific components or a defined set of services. Naval aviation platforms, like the H-60 helicopters, have long service lives, often spanning decades. Support contracts are crucial for maintaining their operational readiness. A six-year period allows for a stable support arrangement, but it also necessitates careful oversight to ensure continued value and responsiveness. The annual value of roughly $7 million suggests a focused scope, possibly related to specific maintenance, repair, or logistical functions rather than comprehensive fleet-wide support. Typical support cycles can vary significantly based on the complexity of the platform and the scope of services required.

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: $42,216,480

Exercised Options: $42,216,480

Current Obligation: $42,216,480

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0038309D010F

IDV Type: IDC

Timeline