DoD's $167M Naval Aviation PBL Contract Awarded to Maritime Helicopter Support Company LLC
Contract Overview
Contract Amount: $167,373,888 ($167.4M)
Contractor: Maritime Helicopter Support Company LLC
Awarding Agency: Department of Defense
Start Date: 2006-10-10
End Date: 2007-09-30
Contract Duration: 355 days
Daily Burn Rate: $471.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PBL FOR NAVAL AVIATION
Place of Performance
Location: WOODBRIDGE, PRINCE WILLIAM County, VIRGINIA, 22192
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $167.4 million to MARITIME HELICOPTER SUPPORT COMPANY LLC for work described as: PBL FOR NAVAL AVIATION Key points: 1. The contract is a Performance-Based Logistics (PBL) effort for Naval Aviation. 2. Awarded to Maritime Helicopter Support Company LLC, a single entity. 3. The contract duration is 355 days. 4. The total award amount is $167,373,888. 5. The NAICS code indicates Aircraft Manufacturing.
Value Assessment
Rating: questionable
The contract value is substantial at over $167 million. Without a competitive process, it's difficult to assess if this price represents fair value compared to potential alternatives or market rates for similar PBL services.
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 competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition raises concerns about the optimal use of taxpayer funds, as a negotiated sole-source price may not reflect the best possible value.
Public Impact
Naval aviation readiness could be impacted by the availability and cost of support services. Taxpayers may be overpaying for helicopter support due to the absence of competition. The long-term implications for the Navy's helicopter maintenance and sustainment strategy are unclear without competitive benchmarking.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Sole-source award
Positive Signals
- Performance-Based Logistics (PBL) approach
Sector Analysis
This contract falls within the Defense sector, specifically supporting naval aviation. Spending benchmarks for PBL contracts in this area can vary widely based on the specific aircraft and support requirements.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to confirm.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense received fair value and that appropriate justification existed for not competing the requirement.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited transparency on justification
- No indication of small business participation
Tags
aircraft-manufacturing, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $167.4 million to MARITIME HELICOPTER SUPPORT COMPANY LLC. PBL FOR 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 $167.4 million.
What is the period of performance?
Start: 2006-10-10. End: 2007-09-30.
What was the justification for awarding this significant contract on a sole-source basis?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of viable alternatives. Without access to the contract file, the specific rationale remains unknown. Understanding this justification is crucial for assessing the necessity of bypassing the competitive process and its potential impact on cost and value.
How does the performance of Maritime Helicopter Support Company LLC compare to industry benchmarks for similar PBL contracts?
Assessing performance against industry benchmarks requires detailed metrics on availability, reliability, and cost-effectiveness. Given the sole-source nature, direct comparison is challenging. However, analyzing historical performance data and comparing key performance indicators (KPIs) against industry averages for helicopter sustainment could reveal areas of potential overspending or underperformance relative to market expectations.
What is the long-term strategy for ensuring competitive pricing for naval aviation support services?
The long-term strategy should involve a review of requirements to identify opportunities for future competition. This could include breaking down large sole-source contracts into smaller, more competitive segments, exploring alternative support providers, or developing organic government capabilities. Proactive market research and strategic sourcing are essential to avoid recurring sole-source awards and ensure sustained value for taxpayer investment.
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: 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
Financial Breakdown
Contract Ceiling: $167,373,888
Exercised Options: $167,373,888
Current Obligation: $167,373,888
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038304D028N
IDV Type: IDC
Timeline
Start Date: 2006-10-10
Current End Date: 2007-09-30
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2018-09-26
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