Maritime Helicopter Support Company LLC awarded $66.7M contract for Naval Aviation support, with no competition

Contract Overview

Contract Amount: $66,697,436 ($66.7M)

Contractor: Maritime Helicopter Support Company LLC

Awarding Agency: Department of Defense

Start Date: 2010-10-05

End Date: 2011-12-31

Contract Duration: 452 days

Daily Burn Rate: $147.6K/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 $66.7 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 potential overpayment and lack of competitive pressure. 2. The contract duration of 452 days suggests a significant operational need for the services provided. 3. Fixed-price contract type aims to control costs, but the absence of competition limits benchmarking. 4. The specific nature of 'Naval Aviation' support implies critical defense operations. 5. Lack of small business involvement noted, with no set-aside or subcontracting indications.

Value Assessment

Rating: questionable

Without competitive bids, it is difficult to assess if the $66.7 million awarded represents fair market value. The fixed-price nature provides some cost control, but the lack of comparison points makes a definitive value-for-money assessment challenging. Benchmarking against similar sole-source contracts for naval aviation support would be necessary to determine if the pricing is reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach bypasses the competitive bidding process, which typically drives down prices and encourages innovation. The lack of competition suggests either a unique capability held by Maritime Helicopter Support Company LLC or a potential oversight in the procurement process.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, there's no guarantee that the price reflects the best possible value.

Public Impact

Naval aviation operations benefit from the specialized support services provided. The contract ensures the continued readiness and operational capability of naval aircraft. Services are likely concentrated in areas where naval aviation units are stationed, potentially impacting the New York region. The contract supports specialized technical roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially inflates costs for taxpayers.
Lack of transparency in the justification for sole-source procurement.
No indication of small business participation, potentially missing opportunities for smaller firms.
Contract duration is significant, requiring careful monitoring of performance and costs throughout its term.

Positive Signals

Fixed-price contract type provides a degree of cost certainty once awarded.
The contract addresses a specific need within naval aviation, indicating strategic importance.
Award to a single entity may streamline management and delivery for this specific requirement.

Sector Analysis

The defense sector, particularly naval aviation, relies on specialized support services to maintain complex aircraft and systems. This contract falls within the broader aerospace and defense industry, which is characterized by high technological demands and significant government spending. Comparable spending benchmarks are difficult to establish without knowing the precise services rendered, but large contracts for specialized maintenance and support are common.

Small Business Impact

This contract does not appear to have a small business set-aside. Furthermore, there is no explicit mention of subcontracting requirements for small businesses. This suggests that opportunities for small businesses to participate in this specific contract may be limited, potentially concentrating the economic benefits with the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. The fixed-price nature provides some level of accountability, but the sole-source award necessitates robust monitoring to ensure fair pricing and effective service delivery. Transparency regarding the justification for the sole-source award and performance metrics would enhance accountability.

Related Government Programs

Naval Aviation Maintenance
Defense Logistics Support
Aerospace Support Services
Maritime Operations Support

Risk Flags

Sole-source award without clear justification.
Potential mismatch between NAICS code and contract description.
Lack of small business participation.
Limited transparency on value for money due to no competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.7 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $66.7 million.

What is the period of performance?

Start: 2010-10-05. End: 2011-12-31.

What specific services does Maritime Helicopter Support Company LLC provide under this contract?

The provided data indicates the contract is for 'NAVAL AVIATION' support. While the specific services are not detailed, this generally encompasses a range of activities critical to maintaining the operational readiness of naval helicopters. This could include depot-level maintenance, repair and overhaul of components, logistical support, technical services, or specialized engineering support. Given the 'Office Machinery Manufacturing' NAICS code (333313), it might relate to specialized equipment or systems integral to helicopter operations, or potentially manufacturing/refurbishment of related parts. Further investigation into the contract's statement of work would clarify the exact nature of the support.

What is the justification for awarding this contract on a sole-source basis?

The provided data explicitly states the contract was 'NOT COMPETED' (CT: NOT COMPETED), indicating a sole-source award. Government contracts are typically competed to ensure fair pricing and maximize value for taxpayers. Sole-source awards are exceptions, usually justified when only one responsible source can provide the required supplies or services. Common justifications include urgent and compelling needs, unique capabilities, or specific research and development requirements. Without access to the contract's justification documentation (e.g., a Justification and Approval document), the precise reason for this sole-source award remains unknown but is a critical area for scrutiny.

How does the contract value of $66.7 million compare to similar naval aviation support contracts?

Direct comparison of the $66.7 million contract value is challenging without knowing the specific services rendered and the contract duration. However, for context, large-scale naval aviation support contracts can range from tens of millions to hundreds of millions of dollars, depending on the scope (e.g., full depot maintenance for entire fleets vs. specialized component repair). The duration of 452 days (approximately 15 months) suggests a substantial, medium-term engagement. Given this is a sole-source award, benchmarking against competitively awarded contracts for similar services would be essential to assess if the price is reasonable. The absence of competition inherently makes value assessment more difficult.

What are the potential risks associated with a sole-source contract of this magnitude?

Sole-source contracts carry inherent risks, primarily related to cost and performance. Without competition, there is less pressure on the contractor to offer the lowest possible price, potentially leading to overpayment. Transparency can also be reduced, making it harder to verify the necessity and efficiency of the services. Furthermore, reliance on a single provider can create risks if that provider experiences financial difficulties, operational issues, or fails to meet performance standards. Robust government oversight and clear performance metrics are crucial to mitigate these risks. The lack of small business participation is also a missed opportunity for broader economic impact.

What is the track record of Maritime Helicopter Support Company LLC in performing federal contracts?

The provided data indicates Maritime Helicopter Support Company LLC (co: MARITIME HELICOPTER SUPPORT COMPANY LLC) was awarded this specific contract. However, it does not provide information on their past performance, contract history, or track record with the federal government. To assess their reliability and past performance, a review of the Federal Procurement Data System (FPDS) or other government contract databases would be necessary to identify previous awards, contract types, values, and any performance evaluations or disputes associated with the company.

What is the significance of the NAICS code 333313 (Office Machinery Manufacturing) for a naval aviation support contract?

The NAICS code 333313, 'Office Machinery Manufacturing,' appears incongruous with a 'NAVAL AVIATION' support contract. Typically, aviation support contracts would fall under aerospace manufacturing, maintenance, repair, or logistics-related NAICS codes. This discrepancy raises a flag and warrants further investigation. It's possible the code is misapplied, or the contract involves highly specialized, perhaps IT-related, equipment or machinery used within naval aviation operations that falls under this manufacturing category. Clarification of the contract's scope and the rationale for this specific NAICS code is needed.

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: $66,697,436

Exercised Options: $66,697,436

Current Obligation: $66,697,436

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0038309D010F

IDV Type: IDC

Timeline