DoD's $43M Maritime Helicopter Support Contract Awarded to Maritime Helicopter Support Company LLC
Contract Overview
Contract Amount: $43,058,294 ($43.1M)
Contractor: Maritime Helicopter Support Company LLC
Awarding Agency: Department of Defense
Start Date: 2008-10-29
End Date: 2013-07-11
Contract Duration: 1,716 days
Daily Burn Rate: $25.1K/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
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $43.1 million to MARITIME HELICOPTER SUPPORT COMPANY LLC for work described as: NAVAL AVIATION Key points: 1. Significant contract value of $43 million over nearly 5 years. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on Aircraft Manufacturing (NAICS 336411) indicates specialized support. 4. Contract duration of 1716 days suggests a long-term need.
Value Assessment
Rating: questionable
The contract value of $43,058,294 for aircraft manufacturing services appears substantial. Without a competitive bidding process, it is difficult to assess if this price represents fair market value compared to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This method may limit price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition in this sole-source award could result in the government paying more than necessary, impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The long-term nature of the contract suggests a critical need for these specific helicopter support services. Potential for reduced innovation and service quality without competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Specific focus on maritime helicopter support
- Long contract duration indicating sustained need
Sector Analysis
The Department of the Navy's award to Maritime Helicopter Support Company LLC falls within the Aircraft Manufacturing sector. Spending benchmarks in this specialized area are hard to establish without competitive data, but large sole-source contracts warrant scrutiny.
Small Business Impact
The contract was awarded to Maritime Helicopter Support Company LLC, and there is no indication that small businesses were involved as subcontractors or partners in this sole-source award.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure the contractor is delivering services effectively and at a reasonable cost, despite the lack of competition.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency in price justification
- No small business participation indicated
Tags
aircraft-manufacturing, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.1 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 $43.1 million.
What is the period of performance?
Start: 2008-10-29. End: 2013-07-11.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of other responsible sources. Without specific details on this contract's justification, it's presumed the Department of the Navy determined these factors applied. However, the absence of competition makes verifying fair pricing challenging and necessitates strong internal controls and post-award monitoring to mitigate potential overspending.
What are the risks associated with a sole-source contract of this magnitude and duration?
The primary risks include potential overpayment due to lack of competitive pressure, reduced incentive for innovation, and vendor lock-in. If the contractor faces financial difficulties or operational issues, the government has limited alternatives. The long duration also means the government is committed to this provider for an extended period, potentially missing out on better solutions or pricing that could emerge.
How does this contract contribute to the overall effectiveness of naval aviation operations?
This contract directly supports naval aviation by providing essential services for maritime helicopters. The long duration and significant value suggest these services are critical for maintaining the operational readiness and effectiveness of these aircraft. However, the effectiveness is also tied to the quality of service provided and whether the sole-source arrangement truly meets the specialized needs without compromising value.
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, 01
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership
Financial Breakdown
Contract Ceiling: $43,058,294
Exercised Options: $43,058,294
Current Obligation: $43,058,294
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038304D028N
IDV Type: IDC
Timeline
Start Date: 2008-10-29
Current End Date: 2013-07-11
Potential End Date: 2013-07-11 00:00:00
Last Modified: 2014-10-28
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