DoD's $262.6M Naval Aviation Contract Awarded to Maritime Helicopter Support Company LLC

Contract Overview

Contract Amount: $262,614,249 ($262.6M)

Contractor: Maritime Helicopter Support Company LLC

Awarding Agency: Department of Defense

Start Date: 2012-10-16

End Date: 2013-09-30

Contract Duration: 349 days

Daily Burn Rate: $752.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NAVAL AVIATION

Place of Performance

Location: OWEGO, TIOGA County, NEW YORK, 13827

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $262.6 million to MARITIME HELICOPTER SUPPORT COMPANY LLC for work described as: NAVAL AVIATION Key points: 1. Significant contract value for specialized aviation support. 2. Lack of competition raises questions about price discovery. 3. Potential risk associated with sole-source awards. 4. Focus on aircraft parts manufacturing within the Defense sector.

Value Assessment

Rating: questionable

The contract value of $262.6 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar services or parts.

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 may lead to higher costs for taxpayers.

Taxpayer Impact: The absence of competition could result in the government paying more than necessary, impacting taxpayer funds.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The sole-source nature of the award could set a precedent for future non-competitive contracts. Ensuring the quality and necessity of the 'Other Aircraft Parts' is crucial for naval readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business participation

Positive Signals

Specific need for specialized parts/services

Sector Analysis

This contract falls under the Defense sector, specifically related to aircraft parts manufacturing. Spending in this area is critical for maintaining military readiness, but competitive sourcing is generally preferred to ensure value.

Small Business Impact

The data indicates that this contract did not involve small businesses, either as the prime contractor or through subcontracting. This represents a missed opportunity for small business participation in defense spending.

Oversight & Accountability

Oversight is needed to ensure the justification for the sole-source award was robust and that the pricing is reasonable given the lack of competition. Accountability for taxpayer funds is paramount.

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 competitive pricing.
No small business participation.
Potential for overpayment due to lack of competition.
Limited transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $262.6 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 $262.6 million.

What is the period of performance?

Start: 2012-10-16. End: 2013-09-30.

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

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without further details, it's impossible to ascertain the specific rationale. However, such justifications are often scrutinized to ensure they are valid and not simply a means to avoid competitive processes.

What is the risk associated with awarding a large contract without competition?

The primary risk is paying an inflated price due to the absence of competitive pressure. It can also stifle innovation from other potential vendors and may indicate a lack of proactive market research by the agency. Furthermore, it raises concerns about fairness and equal opportunity for businesses.

How can the effectiveness of this contract be measured given its sole-source nature?

Effectiveness can be measured by the successful delivery of required aircraft parts and services that meet specifications and timelines. Performance metrics, quality control reports, and end-user feedback from naval aviation units are crucial. However, assessing cost-effectiveness is challenging without a competitive baseline.

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: $263,460,522

Exercised Options: $263,460,522

Current Obligation: $262,614,249

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $275,873,175

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0038311D003F

IDV Type: IDC

Timeline