Maritime Helicopter Support Company LLC awarded $82.3M contract for Naval Aviation support, with no competition

Contract Overview

Contract Amount: $82,363,549 ($82.4M)

Contractor: Maritime Helicopter Support Company LLC

Awarding Agency: Department of Defense

Start Date: 2010-01-28

End Date: 2011-06-30

Contract Duration: 518 days

Daily Burn Rate: $159.0K/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 $82.4 million to MARITIME HELICOPTER SUPPORT COMPANY LLC for work described as: NAVAL AVIATION Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential for overpayment. 2. The contract duration of 518 days suggests a need for sustained support services. 3. Fixed-price contract type aims to control costs, but the lack of competition limits benchmarking. 4. Awarded by the Department of Defense, indicating critical support for naval operations. 5. The specific NAICS code 333313 points to support for office machinery, which seems incongruous with 'Naval Aviation' and requires further clarification. 6. No small business set-aside was applied, potentially limiting opportunities for smaller specialized firms.

Value Assessment

Rating: questionable

Without competitive bids, it is difficult to assess the value for money. The contract amount of $82.3 million for a period of approximately 1.4 years (518 days) needs to be benchmarked against similar support services for naval aviation. The lack of competition suggests that the government may not have secured the most favorable pricing. Further analysis would require understanding the specific services rendered and comparing them to industry standards or historical data for similar contracts.

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 typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or when urgency precludes a competitive process. The absence of multiple bidders means that price discovery through market forces was not utilized, potentially leading to higher costs for the government.

Taxpayer Impact: Sole-source awards can result in taxpayers paying a premium, as the government does not benefit from the cost-saving pressures inherent in a competitive bidding environment.

Public Impact

Naval aviation operations benefit from the sustained support services provided under this contract. The contract ensures the availability of necessary equipment and potentially maintenance for naval aircraft. The primary beneficiaries are the personnel and units within the U.S. Navy's aviation divisions. The geographic impact is likely concentrated around naval bases and operational areas where aviation support is required.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about cost-effectiveness and potential overpayment.
The stated NAICS code (333313 - Office Machinery Manufacturing) appears misaligned with the contract's description ('NAVAL AVIATION'), suggesting a potential data entry error or a highly unusual service requirement.
The sole-source nature limits transparency into the contractor's pricing structure and justification.
No small business subcontracting goals were identified, potentially excluding smaller businesses from participating in this significant contract.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government, assuming the scope of work is well-defined.
The contract duration of over a year indicates a commitment to ensuring consistent support for naval aviation.
Awarded by the Department of Defense, suggesting alignment with national security objectives.

Sector Analysis

The defense sector, particularly naval aviation, relies heavily on specialized support services to maintain operational readiness. This contract, valued at over $82 million, falls within the broader category of defense contracting. Market size for such specialized support can be substantial, though often fragmented due to the unique requirements of different platforms and services. Benchmarking this spending would require comparing it to other contracts for similar helicopter support or aviation maintenance services within the DoD.

Small Business Impact

This contract was not set aside for small businesses, nor were there indications of specific subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this significant $82.3 million award were limited. The absence of set-asides or subcontracting plans can impact the broader small business ecosystem within the defense contracting space, potentially concentrating larger portions of the award with larger prime contractors.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contract management agencies, such as the Defense Contract Management Agency (DCMA). Accountability measures are usually embedded within the contract terms, including performance standards and reporting requirements. Transparency is often limited in sole-source procurements, but contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Department of Defense Maintenance and Repair Contracts
Aviation Support Services
Maritime Helicopter Programs

Risk Flags

Potential misclassification of NAICS code.
Sole-source award limits price competition.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.4 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 $82.4 million.

What is the period of performance?

Start: 2010-01-28. End: 2011-06-30.

What specific services does Maritime Helicopter Support Company LLC provide under this $82.3 million contract for Naval Aviation?

The provided data indicates the contract is for 'NAVAL AVIATION' and has a NAICS code of '333313', which typically corresponds to 'Office Machinery Manufacturing'. This discrepancy is significant and requires clarification. Generally, contracts for naval aviation support can encompass a wide range of services, including but not limited to, aircraft maintenance, repair, overhaul (MRO), logistics support, spare parts provisioning, technical support, and potentially specialized training. Given the 'Maritime Helicopter' in the contractor's name, it is highly probable that the services relate to the maintenance, repair, or operational support of maritime helicopters used by the Navy. The specific nature of the 'office machinery' classification in relation to aviation support remains unclear without further documentation.

How does the $82.3 million contract value compare to similar naval aviation support contracts?

Benchmarking the $82.3 million contract value against similar naval aviation support contracts is challenging without more specific details on the services rendered and the contract duration. However, large-scale aviation support contracts, especially those involving specialized platforms like maritime helicopters, can easily reach tens or hundreds of millions of dollars over their lifecycle. Contracts for MRO services, logistics, and sustainment for naval fleets are typically substantial investments. The 518-day duration (approximately 1.4 years) suggests a significant scope of work. A comprehensive comparison would require analyzing contracts with similar service scopes, platform types (e.g., specific helicopter models), and contract types (e.g., firm-fixed-price) awarded by the Department of Defense or other naval forces.

What are the risks associated with awarding an $82.3 million contract on a sole-source basis?

The primary risk associated with a sole-source award of this magnitude ($82.3 million) is the potential for inflated pricing and reduced value for money. Without competition, the government loses the benefit of market forces driving down costs and encouraging innovation. There's a risk that the contractor may not be as efficient or cost-conscious as they would be under competitive pressure. Furthermore, sole-source awards can sometimes indicate a lack of market research or planning by the procuring agency. Transparency is also reduced, making it harder for the public and oversight bodies to scrutinize the fairness of the price. This necessitates robust internal government cost analysis and negotiation to mitigate these risks.

What is the track record of Maritime Helicopter Support Company LLC in fulfilling federal contracts, particularly within naval aviation?

Information regarding the specific track record of 'MARITIME HELICOPTER SUPPORT COMPANY LLC' in fulfilling federal contracts, especially within naval aviation, is not detailed in the provided data snippet. To assess their track record, one would need to examine their past performance on similar contracts, including contract values, durations, on-time delivery rates, quality of services, and any past performance reviews or disputes. A search of federal procurement databases (like SAM.gov or FPDS) would be necessary to identify previous awards, task orders, and performance history. Without this information, it's difficult to gauge their experience and reliability for this significant $82.3 million award.

How does the contract's classification under NAICS code 333313 (Office Machinery Manufacturing) align with its purpose for Naval Aviation support?

The alignment between NAICS code 333313 (Office Machinery Manufacturing) and a contract described as supporting 'NAVAL AVIATION' is highly unusual and suggests a potential error or a very niche requirement. NAICS 333313 covers establishments primarily engaged in manufacturing office machinery, such as calculating and accounting machines, computers (except electronic), and other office equipment. It does not typically encompass defense or aviation support services. It is possible that the contract involves specialized equipment or components that fall under this manufacturing code, or that there was a data entry error during contract registration. Clarification from the contracting agency (Department of Defense) would be essential to understand this discrepancy and its implications for the contract's scope and oversight.

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

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: $82,363,549

Exercised Options: $82,363,549

Current Obligation: $82,363,549

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0038309D010F

IDV Type: IDC

Timeline