DoD's $556M Naval Aviation Contract Awarded to Maritime Helicopter Support Company LLC
Contract Overview
Contract Amount: $55,656,875 ($55.7M)
Contractor: Maritime Helicopter Support Company LLC
Awarding Agency: Department of Defense
Start Date: 2009-10-08
End Date: 2015-02-11
Contract Duration: 1,952 days
Daily Burn Rate: $28.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NAVAL AVIATION
Place of Performance
Location: WOODBRIDGE, PRINCE WILLIAM County, VIRGINIA, 22192, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $55.7 million to MARITIME HELICOPTER SUPPORT COMPANY LLC for work described as: NAVAL AVIATION Key points: 1. Significant contract value of $556.6 million for naval aviation support. 2. Sole-source award raises questions about competition and potential price inflation. 3. Contract duration of 1952 days (over 5 years) indicates long-term reliance. 4. Focus on 'Office Machinery Manufacturing' (PSC 333313) seems unusual for naval aviation support.
Value Assessment
Rating: questionable
The contract value of $556.6 million is substantial. Without competitive bidding, it's difficult to assess if this price is fair or if it represents a premium due to the lack of market pressure. Benchmarking against similar naval aviation support contracts would be necessary for a proper valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there is no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition in this sole-source award likely results in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Potential for reduced innovation and service quality without market competition. Dependence on a single contractor for critical naval aviation support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Unclear PSC code alignment
Positive Signals
- Firm Fixed Price contract type can provide cost certainty if priced correctly.
Sector Analysis
The Department of Defense, specifically the Department of the Navy, is a major consumer of various goods and services. Spending benchmarks for naval aviation support can vary widely depending on the specific services and equipment involved. This contract's value is significant within its category.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract, either as prime contractors or subcontractors. Further investigation would be needed to determine if small business participation was considered or mandated.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value and that the justification for not competing the contract was sound.
Related Government Programs
- Office Machinery Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Unusual PSC code for the stated purpose.
- Long contract duration without competitive review.
- Lack of transparency regarding justification for sole-sourcing.
Tags
office-machinery-manufacturing, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.7 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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $55.7 million.
What is the period of performance?
Start: 2009-10-08. End: 2015-02-11.
What specific services or goods are covered under the 'Office Machinery Manufacturing' PSC for this naval aviation contract, and why was this PSC chosen?
The selection of PSC 333313 ('Office Machinery Manufacturing') for a naval aviation support contract is highly unusual and requires clarification. Typically, naval aviation support would fall under categories related to aircraft components, maintenance, or specialized equipment. The specific services or goods procured under this code need to be detailed to understand the contract's true purpose and justify the chosen classification.
What was the justification for awarding this substantial contract on a sole-source basis, and were alternative competitive strategies explored?
Sole-source awards are generally exceptions to the rule, requiring strong justification, such as a unique capability or urgent need. The Department of the Navy must provide a clear rationale for why competition was not feasible or advantageous for this $556.6 million contract. Without this justification, it raises concerns about potential missed opportunities for cost savings and innovation through a competitive process.
How does the $556.6 million contract value compare to similar naval aviation support contracts, particularly those awarded competitively?
Benchmarking this contract's value against similar naval aviation support services procured through competitive means is crucial for assessing value for money. If this sole-source award is significantly higher than comparable competitively bid contracts, it suggests potential overpayment. A detailed cost-benefit analysis, considering the specific services rendered, is necessary to determine if the government received fair pricing.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Office Machinery Manufacturing
Product/Service Code: OFFICE MACH/TEXT PROCESS/VISIB REC
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2510 HUNTER PL STE 201 & 202, WOODBRIDGE, VA, 22192
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $55,656,875
Exercised Options: $55,656,875
Current Obligation: $55,656,875
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0038309D010F
IDV Type: IDC
Timeline
Start Date: 2009-10-08
Current End Date: 2015-02-11
Potential End Date: 2015-02-11 00:00:00
Last Modified: 2015-02-12
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