DoD awards $268.7M for H-60 aircraft component logistics, with no competition
Contract Overview
Contract Amount: $268,707,267 ($268.7M)
Contractor: Maritime Helicopter Support Company LLC
Awarding Agency: Department of Defense
Start Date: 2016-10-07
End Date: 2017-09-30
Contract Duration: 358 days
Daily Burn Rate: $750.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PERFORMANCE BASED LOGISTICS SERVICES FOR APPROX 1720 VARIOUS COMPONENTS ON THE H-60 AIRCRAFT FOR FY17
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $268.7 million to MARITIME HELICOPTER SUPPORT COMPANY LLC for work described as: PERFORMANCE BASED LOGISTICS SERVICES FOR APPROX 1720 VARIOUS COMPONENTS ON THE H-60 AIRCRAFT FOR FY17 Key points: 1. Significant contract value for sustainment services. 2. Lack of competition raises concerns about price discovery. 3. Performance-based logistics aims for efficiency but requires strong oversight. 4. Sector: Defense aviation sustainment.
Value Assessment
Rating: questionable
The contract value of $268.7M for FY17 is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar PBL contracts for other aircraft platforms.
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 taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential logistics services.
Public Impact
Ensures continued operational readiness of critical H-60 helicopters. Potential for cost overruns due to sole-source nature. Impacts the supply chain for a widely used military aircraft. Relies on contractor performance for component availability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Lack of competition
Positive Signals
- Performance-based contract type
- Essential for aircraft readiness
Sector Analysis
This contract falls within the defense aviation sustainment sector, which often involves complex logistics and long-term support agreements. Benchmarks for similar PBL contracts can vary widely based on aircraft age, component criticality, and vendor capabilities.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. The prime contractor is MARITIME HELICOPTER SUPPORT COMPANY LLC, and further analysis would be needed to determine their small business utilization.
Oversight & Accountability
Given the sole-source nature and significant value, robust oversight by the Defense Contract Management Agency is crucial to ensure performance standards are met and costs are reasonable. Tracking key performance indicators will be vital.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits price competition.
- High contract value warrants close monitoring.
- Potential for cost creep without competitive pressure.
- Reliance on a single contractor for critical components.
- Need for strong performance oversight.
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 $268.7 million to MARITIME HELICOPTER SUPPORT COMPANY LLC. PERFORMANCE BASED LOGISTICS SERVICES FOR APPROX 1720 VARIOUS COMPONENTS ON THE H-60 AIRCRAFT FOR FY17
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 $268.7 million.
What is the period of performance?
Start: 2016-10-07. End: 2017-09-30.
What is the historical cost trend for H-60 component logistics, and how does this award compare?
Historical cost data for H-60 component logistics is not provided. However, the $268.7M award for FY17 is a significant expenditure. Without competitive bids, a direct comparison to market rates or previous contract periods is challenging, making it difficult to ascertain if this represents value for money or a potential cost increase.
What are the specific performance metrics and penalties outlined in this performance-based contract?
The provided data indicates a 'FIRM FIXED PRICE' contract type, which is often used with performance-based elements. However, the specific performance metrics, service level agreements, and associated penalties or incentives are not detailed. Understanding these is critical for assessing the effectiveness of the PBL approach and ensuring contractor accountability.
Are there any plans to introduce competition for future H-60 logistics support contracts?
The data indicates this contract was 'NOT COMPETED'. There is no information available regarding future competition strategies for H-60 logistics support. A lack of future competition could perpetuate the current pricing structure and limit opportunities for cost savings through market engagement.
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: $268,707,267
Exercised Options: $268,707,267
Current Obligation: $268,707,267
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: 2016-10-07
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2019-10-28
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