DoD's $78.8M Naval Aviation H60 PBL contract awarded to Maritime Helicopter Support Company LLC

Contract Overview

Contract Amount: $78,757,623 ($78.8M)

Contractor: Maritime Helicopter Support Company LLC

Awarding Agency: Department of Defense

Start Date: 2014-10-06

End Date: 2015-02-28

Contract Duration: 145 days

Daily Burn Rate: $543.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NAVAL AVIATION H60 PBL

Place of Performance

Location: FEASTERVILLE TREVOSE, BUCKS County, PENNSYLVANIA, 19053

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $78.8 million to MARITIME HELICOPTER SUPPORT COMPANY LLC for work described as: NAVAL AVIATION H60 PBL Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm Fixed Price contract type suggests cost certainty for the government. 3. Performance period of 145 days indicates a short-term support requirement. 4. The contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code. 5. Awarded by the Department of Defense, indicating a focus on military aviation readiness. 6. The contract value is substantial, suggesting critical support for H60 helicopters.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and limited public data. The raw dollar amount of $78.8 million for a 145-day period suggests a high per-diem cost. Without comparable sole-source awards or detailed cost breakdowns, it's difficult to definitively assess value for money. The lack of competition inherently raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Maritime Helicopter Support Company LLC, was solicited. This approach bypasses the competitive bidding process, which typically drives down prices and encourages innovation. The rationale for a sole-source award would need to be justified by specific circumstances, such as unique capabilities or urgent needs.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the best possible price, as competition is absent. This can lead to higher costs for essential defense services.

Public Impact

The primary beneficiaries are the U.S. Navy units operating H60 helicopters, ensuring their operational readiness. Services delivered likely include maintenance, repair, and overhaul (MRO) support for H60 airframes and components. Geographic impact is likely concentrated around naval aviation bases where H60s are stationed. Workforce implications include specialized technical personnel required for helicopter maintenance and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award raises concerns about lack of competition and potential for inflated pricing.
Limited performance period may indicate a stop-gap measure rather than a long-term strategic solution.
Lack of transparency in the justification for sole-source award.
Potential for vendor lock-in due to specialized nature of support.

Positive Signals

Firm Fixed Price contract provides cost predictability for the government.
Award to a specific company suggests they possess unique or critical capabilities for H60 support.
Focus on H60 helicopters indicates support for a vital military asset.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts and support services. The market for specialized helicopter maintenance and parts is often characterized by high barriers to entry due to technical expertise and certifications required. The $78.8 million value for a short-term support contract is significant, reflecting the complexity and criticality of maintaining naval aviation assets. Comparable spending benchmarks would typically involve other MRO contracts for similar helicopter platforms.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the sole-source nature of the award limits opportunities for small businesses to participate as prime contractors or even subcontractors unless specifically included by the prime. The impact on the small business ecosystem is likely minimal for this specific award, though larger prime contractors often have subcontracting goals.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management structures, potentially involving the Defense Contract Management Agency (DCMA) for performance monitoring. Transparency is limited due to the sole-source nature. Accountability would be enforced through contract terms and performance metrics, with potential for Inspector General review if performance issues or fraud are suspected.

Related Government Programs

H-60 Black Hawk Helicopter Support
Naval Aviation Maintenance Contracts
Defense Logistics Agency (DLA) Aviation Support
Aircraft Component Repair and Overhaul Services

Risk Flags

Sole-source award
Lack of competition
Limited performance period
High per-day cost potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $78.8 million to MARITIME HELICOPTER SUPPORT COMPANY LLC. NAVAL AVIATION H60 PBL

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 $78.8 million.

What is the period of performance?

Start: 2014-10-06. End: 2015-02-28.

What is the specific justification provided by the Department of Defense for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as urgent and compelling needs, unique technical capabilities possessed by only one vendor, or when only one responsible source exists. For this contract, the Department of Defense would have had to document why competition was not feasible or advantageous. Without access to the contract's justification and approval (J&A) document, the precise reasons remain unknown. This lack of transparency is a common concern with sole-source awards, as it can obscure potential inefficiencies or lack of market research.

How does the per-day cost of this contract compare to industry benchmarks for similar helicopter support services?

Calculating a precise per-day cost requires dividing the total contract value ($78,757,622.60) by the contract duration in days (145 days), resulting in approximately $543,156 per day. Benchmarking this figure against industry standards for H60 helicopter support is challenging without access to proprietary cost data from competitors or detailed breakdowns of the services provided. However, this daily rate appears substantial, suggesting that the services encompass highly specialized labor, critical parts, and potentially significant overhead. Without comparable sole-source or competitively bid contracts for similar scope and platform, a definitive comparison is difficult, but the rate warrants scrutiny for value.

What is Maritime Helicopter Support Company LLC's track record with similar sole-source contracts or H60 support?

The provided data indicates that Maritime Helicopter Support Company LLC was the sole awardee for this $78.8 million Naval Aviation H60 PBL contract. Further information regarding their specific track record, including past performance on similar sole-source awards or their experience with H60 helicopter support, is not detailed in the provided data points. A comprehensive assessment would require reviewing their contract history, past performance evaluations, and any available public records of their capabilities and previous government awards. Understanding their history is crucial for evaluating the risk associated with awarding a significant contract without competition.

What are the potential risks associated with a sole-source award for critical aviation support services?

Sole-source awards for critical aviation support services carry several inherent risks. Firstly, the absence of competition can lead to higher prices than might be achieved through a competitive bidding process, potentially resulting in suboptimal value for taxpayer money. Secondly, it can reduce the incentive for the sole provider to innovate or improve efficiency, as they face no direct market pressure. Thirdly, there's a risk of vendor lock-in, where the government becomes dependent on a single supplier, making it difficult and costly to switch providers in the future. Finally, without competitive scrutiny, there's a heightened need for robust government oversight to ensure performance standards are met and costs are reasonable.

How does the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' NAICS code align with the 'Naval Aviation H60 PBL' contract description?

The North American Industry Classification System (NAICS) code '336413 - Other Aircraft Parts and Auxiliary Equipment Manufacturing' aligns well with a contract for 'Naval Aviation H60 PBL' (Performance-Based Logistics). This NAICS code covers establishments primarily engaged in manufacturing aircraft parts and auxiliary equipment, such as engines, propellers, landing gear, and electrical systems, but not the complete aircraft. A PBL contract often involves ensuring the availability and performance of specific components or systems, which directly relates to the manufacturing and support of aircraft parts and auxiliary equipment. Therefore, the chosen NAICS code accurately categorizes the industrial sector relevant to the contract's subject matter.

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: 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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $95,994,604

Exercised Options: $95,994,604

Current Obligation: $78,757,623

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $100,114,932

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0038311D003F

IDV Type: IDC

Timeline