DoD Spends $257.6M on Naval Aviation Parts from Maritime Helicopter Support Company LLC
Contract Overview
Contract Amount: $257,584,423 ($257.6M)
Contractor: Maritime Helicopter Support Company LLC
Awarding Agency: Department of Defense
Start Date: 2011-10-05
End Date: 2012-09-30
Contract Duration: 361 days
Daily Burn Rate: $713.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NAVAL AVIATION REQUIREMENT
Place of Performance
Location: WOODBRIDGE, PRINCE WILLIAM County, VIRGINIA, 22192
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $257.6 million to MARITIME HELICOPTER SUPPORT COMPANY LLC for work described as: NAVAL AVIATION REQUIREMENT Key points: 1. Significant spending on specialized aircraft parts highlights a critical defense need. 2. The sole-source nature of this contract raises questions about potential price inflation. 3. Lack of competition limits opportunities for cost savings and innovation. 4. The sector focuses on niche manufacturing for essential military equipment.
Value Assessment
Rating: questionable
The total award of $257.6M for a single delivery order is substantial. Without competitive bidding, it's difficult to assess if this price is fair compared to market rates for similar aircraft parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method bypasses competitive price discovery, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer value.
Public Impact
Ensures continued operational readiness for naval aviation assets. Supports a specific, potentially limited, supplier base for critical components. Highlights the government's reliance on specialized contractors for unique requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Limited competition
Positive Signals
- Ensures critical part availability
- Supports defense readiness
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on parts for maritime helicopters. Spending benchmarks in this niche area are hard to establish without competitive data.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further investigation would be needed to determine if small businesses were considered or had the capability to compete.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, oversees this contract. The sole-source nature warrants close scrutiny to ensure fair pricing and value.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Supply chain vulnerability
- Limited transparency in price justification
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $257.6 million to MARITIME HELICOPTER SUPPORT COMPANY LLC. NAVAL AVIATION REQUIREMENT
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 $257.6 million.
What is the period of performance?
Start: 2011-10-05. End: 2012-09-30.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without a competitive process, the agency must independently verify that the price is fair and reasonable, often through detailed cost analysis and market research. This ensures taxpayer funds are used efficiently despite the absence of market competition.
What is the risk associated with relying on a single supplier for critical naval aviation components?
Relying on a single supplier for critical components poses significant risks, including potential supply chain disruptions, price gouging, and lack of innovation. If the sole provider faces production issues, financial instability, or goes out of business, it could severely impact naval aviation readiness. This dependency also limits the government's leverage in price negotiations.
How does this spending contribute to the overall effectiveness and readiness of naval aviation assets?
This spending directly contributes to the operational effectiveness and readiness of naval aviation by ensuring the availability of essential parts for maritime helicopters. These components are crucial for maintaining aircraft in flying condition, enabling critical missions such as search and rescue, surveillance, and combat operations. Consistent part availability is a cornerstone of military readiness.
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: $258,953,318
Exercised Options: $258,953,318
Current Obligation: $257,584,423
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $271,573,631
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0038311D003F
IDV Type: IDC
Timeline
Start Date: 2011-10-05
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2019-07-19
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