DoD's $127.5M helicopter support contract awarded to Maritime Helicopter Support Company with no competition

Contract Overview

Contract Amount: $127,491,671 ($127.5M)

Contractor: Maritime Helicopter Support Company LLC

Awarding Agency: Department of Defense

Start Date: 2005-10-24

End Date: 2006-10-24

Contract Duration: 365 days

Daily Burn Rate: $349.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: 200604!298876!1700!N00383!NAVAL INVENTORY CONTROL POINT !N0038304D028N !A!N! !N!0004 ! !20051024!20060930!111018748!111018748!111018748!N!MARITIME HELICOPTER SUPPORT CO!2510 HUNTER PLACE !WOODBRIDGE !VA!22192!74592!059!51!SPRINGFIELD !FAIRFAX !VIRGINIA !+000078420966!N!N!000000000000!1615!HELICOPTER ROTOR BLADES, DRIVE MECHANISMS & COMPON!A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336411!E! !5!A!S! ! ! !99990909!B! ! !B! !D!U!L!1!001!N!1G!A!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!A!N! ! ! ! !1700!N00383!0001! !

Place of Performance

Location: OWEGO, TIOGA County, NEW YORK, 13827

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $127.5 million to MARITIME HELICOPTER SUPPORT COMPANY LLC for work described as: 200604!298876!1700!N00383!NAVAL INVENTORY CONTROL POINT !N0038304D028N !A!N! !N!0004 ! !20051024!20060930!111018748!111018748!111018748!N!MARITIME HELICOPTER SUPPORT CO!2510 HUNTER PLACE !WOODBRIDGE !VA!22192!74592!059!51!SPRINGFIELD !FAIR… Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential value for money. 2. The contract's fixed-price incentive structure aims to align contractor and government interests, but oversight is crucial. 3. Performance period of one year suggests a focus on immediate operational needs rather than long-term sustainment. 4. The primary service involves helicopter rotor blades and drive mechanisms, critical components for naval aviation readiness. 5. Awarded by the Naval Inventory Control Point, indicating a focus on maintaining specific naval aviation assets.

Value Assessment

Rating: questionable

The contract value of $127.5 million for a one-year period for helicopter support components appears substantial. Without competitive bidding, it is difficult to benchmark the pricing against market rates or other similar contracts. The fixed-price incentive (FPI) contract type suggests an attempt to control costs, but the lack of competition means the government may not have secured the best possible price. Further analysis would be needed to determine if the awarded price reflects fair and reasonable value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one responsible source can provide the required goods or services. The lack of competition limits the government's ability to leverage market forces to achieve lower prices and potentially better terms. It also raises concerns about whether alternative solutions or more cost-effective providers were overlooked.

Taxpayer Impact: For taxpayers, a sole-source award means there is a higher risk of paying a premium for goods or services, as the absence of competition reduces the incentive for the contractor to offer the lowest possible price.

Public Impact

Naval aviation units benefit from the continued availability of critical helicopter components, ensuring operational readiness. The contract supports the maintenance and sustainment of maritime helicopters, vital for various naval operations. The primary impact is on the U.S. Navy's aviation fleet, ensuring the functionality of essential aircraft. Workforce implications are likely within the contractor's facilities, supporting specialized manufacturing and logistics for helicopter parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the procurement process due to no-bid award.
Reliance on a single contractor for critical helicopter components could pose supply chain risks.

Positive Signals

Contract addresses critical need for specialized helicopter parts, ensuring operational readiness.
Fixed-price incentive contract type aims to manage costs and performance.
Award to a company with specific expertise in maritime helicopter support.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, specialized manufacturing capabilities, and significant government procurement. Contracts for critical aircraft components like rotor blades are essential for maintaining military readiness. The market for such specialized parts is often limited to a few qualified suppliers. This contract fits within the broader defense industrial base, specifically supporting naval aviation sustainment efforts.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. As a sole-source award for specialized helicopter components, it is likely that the prime contractor possesses unique capabilities that may not be readily available from small businesses. Further investigation would be needed to confirm if any subcontracting plans were in place to involve small businesses in the supply chain.

Oversight & Accountability

Oversight for this contract would fall under the Department of Defense's contract management and inspection processes, likely managed by the Defense Contract Management Agency (DCMA). Accountability measures would be tied to the terms of the fixed-price incentive contract, focusing on delivery schedules and quality specifications. Transparency is limited due to the sole-source nature of the award, but contract award data is publicly available.

Related Government Programs

Naval Aviation Maintenance Programs
Department of Defense Aircraft Component Procurement
Helicopter Sustainment Contracts
Maritime Patrol Aircraft Support

Risk Flags

Sole-source award
Lack of competition
High contract value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $127.5 million to MARITIME HELICOPTER SUPPORT COMPANY LLC. 200604!298876!1700!N00383!NAVAL INVENTORY CONTROL POINT !N0038304D028N !A!N! !N!0004 ! !20051024!20060930!111018748!111018748!111018748!N!MARITIME HELICOPTER SUPPORT CO!2510 HUNTER PLACE !WOODBRIDGE !VA!22192!74592!059!51!SPRINGFIELD !FAIRFAX !VIRGINIA !+000078420966!N!N!000000000000!1615!HELICOPTER ROTOR BLADES, DRIVE MECHANISMS & COMPON!A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336411!E! !5!A!S! ! ! !999

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 $127.5 million.

What is the period of performance?

Start: 2005-10-24. End: 2006-10-24.

What is the track record of Maritime Helicopter Support Company LLC in fulfilling government contracts, particularly for similar helicopter components?

Maritime Helicopter Support Company LLC, based in Woodbridge, VA, has a history of receiving government contracts, primarily with the Department of Defense. While specific details on their track record for fulfilling contracts for helicopter rotor blades and drive mechanisms require deeper database analysis, their repeated awards suggest a capacity to meet certain defense procurement needs. However, the sole-source nature of this particular $127.5 million contract for FY2006 raises questions about the competitive landscape and whether alternative suppliers with potentially better pricing or capabilities were considered. A comprehensive review of their past performance, including any past issues or successes with similar high-value component contracts, would be necessary to fully assess their reliability and value proposition.

How does the $127.5 million contract value compare to historical spending on similar helicopter components by the Navy or other branches?

Comparing the $127.5 million contract value for helicopter rotor blades and drive mechanisms requires careful consideration of the contract type (Fixed Price Incentive), the specific components, and the time period. Historical spending data for similar components can vary significantly based on technological advancements, market fluctuations, and the specific helicopter platforms being supported. Without access to a detailed breakdown of the components included in this award and comparable historical contract data for identical or highly similar parts, a direct value comparison is challenging. However, given the sole-source nature and the substantial amount, it suggests a significant procurement for critical, potentially specialized, parts essential for maintaining naval aviation readiness during that fiscal year.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risks associated with awarding a contract of this magnitude on a sole-source basis include: 1. **Lack of Price Competition:** The government may pay a higher price than if the contract were competed, as there is no incentive for the sole source to offer its lowest possible price. 2. **Limited Innovation:** Without competition, there is less pressure on the contractor to innovate or offer more efficient solutions. 3. **Potential for Complacency:** The contractor may become complacent in terms of quality, delivery, or customer service due to the guaranteed award. 4. **Reduced Transparency:** Sole-source awards can be perceived as less transparent, potentially leading to public scrutiny or accusations of favoritism if not adequately justified. 5. **Supply Chain Vulnerability:** Over-reliance on a single supplier for critical components can create vulnerabilities in the supply chain, especially if the contractor faces production issues or financial instability.

What specific helicopter platforms or naval aviation programs does this contract likely support?

This contract, awarded to Maritime Helicopter Support Company, for "HELICOPTER ROTOR BLADES, DRIVE MECHANISMS & COMPON" (NAICS 336411), likely supports naval aviation programs that utilize helicopters requiring these specific components. Given the 'Naval Inventory Control Point' as the issuing entity, the primary focus would be on U.S. Navy and Marine Corps helicopter fleets. This could include a range of platforms such as MH-60 Seahawk variants (used for anti-submarine warfare, search and rescue, and special operations), CH-53 Sea Stallion/Super Stallion (heavy-lift transport), or potentially other rotary-wing aircraft in the naval inventory. The contract's duration and value suggest a need for a consistent supply of these critical parts for ongoing maintenance and operational readiness of these vital assets.

What is the significance of the 'Fixed Price Incentive' (FPI) contract type in this context?

The Fixed Price Incentive (FPI) contract type is significant because it aims to balance cost control with performance incentives. In an FPI contract, the government and contractor agree on a target cost, a target profit, and a price ceiling. If the final cost is below the target cost, both parties share in the savings according to a predetermined formula. Conversely, if the final cost exceeds the target cost but remains below the ceiling, the contractor absorbs a larger portion of the overrun. If the cost exceeds the ceiling, the contractor bears the full responsibility for the excess. For this $127.5 million contract, the FPI structure suggests the government sought to incentivize the contractor, Maritime Helicopter Support Company, to manage costs effectively while ensuring the delivery of critical helicopter components, though the sole-source nature limits the effectiveness of competitive pressure.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft 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: FIXED PRICE INCENTIVE (L)

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

Financial Breakdown

Contract Ceiling: $27,589,158

Exercised Options: $27,589,158

Current Obligation: $127,491,671

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0038304D028N

IDV Type: IDC

Timeline