DoD Spends $19.2M on UH-60 Main Rotor Blades from Sikorsky, Lacking Competition
Contract Overview
Contract Amount: $19,266,108 ($19.3M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2010-05-19
End Date: 2016-01-29
Contract Duration: 2,081 days
Daily Burn Rate: $9.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UH-60 MAIN ROTOR BLADES
Place of Performance
Location: NEW CUMBERLAND, CUMBERLAND County, PENNSYLVANIA, 17070
Plain-Language Summary
Department of Defense obligated $19.3 million to SIKORSKY AIRCRAFT CORPORATION for work described as: UH-60 MAIN ROTOR BLADES Key points: 1. Significant spending on a critical helicopter component. 2. Sole reliance on Sikorsky Aircraft Corporation raises concerns about price. 3. Long contract duration (2010-2016) may indicate potential for price escalation. 4. Lack of competition is a major risk factor for taxpayer value.
Value Assessment
Rating: questionable
The contract awarded to Sikorsky Aircraft Corporation for UH-60 main rotor blades is questionable due to the absence of competitive bidding. Without market comparison, it's difficult to ascertain if the $19.2 million spent represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no competition was sought. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition likely resulted in taxpayers paying a premium for these essential helicopter parts, as there was no incentive for the contractor to offer the lowest possible price.
Public Impact
Essential for Army aviation readiness, impacting helicopter operational capability. Sikorsky's sole-source award may limit innovation and availability from other manufacturers. Long-term reliance on a single supplier can create vulnerabilities in the supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Critical component for military operations
- Established supplier relationship
Sector Analysis
The Department of Defense's spending on aircraft parts falls within the broader aerospace and defense sector. Benchmarks for sole-source contracts in this sector often show higher costs compared to competitive procurements.
Small Business Impact
This contract was awarded to Sikorsky Aircraft Corporation, a large business. There is no indication that small businesses were involved in the manufacturing or supply of these main rotor blades.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value. A review of the justification for the sole-source award is recommended.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Sole-source dependency
- Limited market visibility
- Risk of supply chain disruption
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.3 million to SIKORSKY AIRCRAFT CORPORATION. UH-60 MAIN ROTOR BLADES
Who is the contractor on this award?
The obligated recipient is SIKORSKY AIRCRAFT CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $19.3 million.
What is the period of performance?
Start: 2010-05-19. End: 2016-01-29.
What was the justification for awarding this contract on a sole-source basis, and was a market research conducted to explore competitive options?
The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source award. Without further documentation, the specific justification remains unclear. Typically, sole-source awards require a detailed justification, such as a unique capability or urgent need. A thorough market research should have been conducted to identify potential competitors, even if ultimately deemed unsuitable.
How does the unit cost of these UH-60 main rotor blades compare to similar components purchased competitively by other agencies or allies?
Direct comparison is challenging without specific unit cost data and detailed specifications. However, sole-source contracts inherently lack the price pressure of competition. It is highly probable that the unit cost is higher than what could have been achieved through a competitive bidding process, potentially leading to millions in unnecessary expenditure over the contract's life.
What measures are in place to ensure the quality and reliability of these critical components when sourced from a single supplier?
When relying on a sole-source supplier for critical components like rotor blades, robust quality assurance and inspection protocols are paramount. The government likely has stringent testing and acceptance criteria outlined in the contract. However, the absence of competition means there's less market-driven incentive for the supplier to continuously improve quality beyond contractual minimums.
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
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 6900 MAIN STREET, STRATFORD, CT, 06615
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $19,266,108
Exercised Options: $19,266,108
Current Obligation: $19,266,108
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ06D0116
IDV Type: IDC
Timeline
Start Date: 2010-05-19
Current End Date: 2016-01-29
Potential End Date: 2016-01-29 12:01:00
Last Modified: 2019-08-15
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