DoD awards $267M for H-60 aircraft component logistics, with no competition
Contract Overview
Contract Amount: $267,223,442 ($267.2M)
Contractor: Maritime Helicopter Support Company LLC
Awarding Agency: Department of Defense
Start Date: 2015-10-08
End Date: 2016-09-30
Contract Duration: 358 days
Daily Burn Rate: $746.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PERFORMANCE BASED LOGISTICS SERVICES FOR APPROXIMATELY 1720 VARIOUS COMPONENTS ON THE H-60 AIRCRAFT FOR FY16
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $267.2 million to MARITIME HELICOPTER SUPPORT COMPANY LLC for work described as: PERFORMANCE BASED LOGISTICS SERVICES FOR APPROXIMATELY 1720 VARIOUS COMPONENTS ON THE H-60 AIRCRAFT FOR FY16 Key points: 1. Significant contract value for sustainment services. 2. Sole-source award raises concerns about price discovery. 3. Focus on H-60 aircraft components indicates specialized need. 4. Potential for cost savings through competitive bidding in future.
Value Assessment
Rating: questionable
The contract's firm fixed price structure provides cost certainty. However, without competition, it's difficult to assess if the $267.2 million price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning only one vendor, Maritime Helicopter Support Company LLC, was considered. This lack of competition limits price negotiation and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition could result in taxpayers paying a premium for these logistics services.
Public Impact
Ensures continued operational readiness of critical H-60 helicopters. Supports maintenance and availability of essential aircraft components. Impacts the defense industrial base and specialized logistics providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Performance-based contract
- Supports critical aircraft
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts and logistics. Spending benchmarks for similar sustainment contracts can vary widely based on aircraft type and component complexity.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or if this award impacted small business participation in the sector.
Oversight & Accountability
Oversight is provided by the Defense Contract Management Agency. The sole-source nature of this award warrants close scrutiny to ensure fair pricing and performance.
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 due to no competitive pressure.
- Limited transparency on cost justification.
- Risk of vendor lock-in for critical support.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ny, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $267.2 million to MARITIME HELICOPTER SUPPORT COMPANY LLC. PERFORMANCE BASED LOGISTICS SERVICES FOR APPROXIMATELY 1720 VARIOUS COMPONENTS ON THE H-60 AIRCRAFT FOR FY16
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 $267.2 million.
What is the period of performance?
Start: 2015-10-08. End: 2016-09-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives. Without further details, it's difficult to ascertain the specific reasons. However, such awards necessitate rigorous justification to ensure taxpayer funds are used efficiently and effectively, especially for a contract of this magnitude.
How does the benchmark pricing for H-60 component logistics compare to this award?
Benchmarking this $267.2 million award against similar H-60 component logistics contracts is challenging without access to detailed cost breakdowns and market research. The lack of competition prevents a direct comparison to competitively bid contracts, making it difficult to determine if the price is optimal or inflated. Further analysis would require access to historical pricing data and competitor offerings.
What are the long-term implications of sole-sourcing critical aircraft component support?
Long-term sole-sourcing can stifle innovation and lead to vendor lock-in, potentially increasing costs and reducing flexibility. It may also discourage new entrants into the market. For critical assets like the H-60, ensuring a competitive landscape for sustainment services, even if through phased competition or strategic sourcing, is vital for long-term cost-effectiveness and operational resilience.
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: 1801 STATE ROUTE 17C, OWEGO, NY, 13827
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: $267,223,442
Exercised Options: $267,223,442
Current Obligation: $267,223,442
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $363,417,213
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038315D008F
IDV Type: IDC
Timeline
Start Date: 2015-10-08
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2019-10-28
More Contracts from Maritime Helicopter Support Company LLC
- H-60 Seahawk PBL Providing Logistical Support to Approximately 1700 Weapon Replaceable Assemblies and Shop Replaceable Assemblies — $296.5M (Department of Defense)
- H-60 Seahawk PBL Providing Logistical Support to Approximately 1700 Weapon Replaceable Assemblies an Shop Replaceable Assemblies — $270.6M (Department of Defense)
- Performance Based Logistics Services for Approx 1720 Various Components on the H-60 Aircraft for FY17 — $268.7M (Department of Defense)
- Naval Aviation — $264.8M (Department of Defense)
- Naval Aviation — $262.6M (Department of Defense)
View all Maritime Helicopter Support Company LLC federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)