DHS awards $11.8M for SPRINT 3.0 non-recurring engineering, extending services through June 2027

Contract Overview

Contract Amount: $11,862,683 ($11.9M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2025-12-04

End Date: 2027-06-30

Contract Duration: 573 days

Daily Burn Rate: $20.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SPRINT 3.0 ORDER TO CONTINUE NON-RECURRING ENGINEERING SERVICES

Place of Performance

Location: ELIZABETH CITY, PASQUOTANK County, NORTH CAROLINA, 27909

State: North Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.9 million to SIKORSKY AIRCRAFT CORPORATION for work described as: SPRINT 3.0 ORDER TO CONTINUE NON-RECURRING ENGINEERING SERVICES Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns if not closely managed. 2. Sole-source award raises questions about competition and potential for better pricing through an open market. 3. Long contract duration (573 days) requires sustained oversight to ensure continued value and performance. 4. Services are for non-recurring engineering, suggesting a focus on development and improvement rather than routine maintenance. 5. The contract is a delivery order under a larger program, implying a pre-existing relationship and framework. 6. No small business set-aside or subcontracting was indicated, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

This contract's value is difficult to benchmark without comparable sole-source awards for similar non-recurring engineering services. The cost-plus-fixed-fee structure necessitates careful monitoring of actual costs to ensure the fixed fee remains reasonable and that the overall price reflects fair value for the engineering effort. Without competitive bidding, there's a risk that the pricing may not be as optimized as it could be in a more open market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary specialized capabilities or when urgency precludes a full and open competition. The lack of competition means there were no other bidders to compare against, potentially impacting price discovery and the government's ability to secure the most advantageous terms.

Taxpayer Impact: For taxpayers, a sole-source award means the government may not be achieving the lowest possible price due to the absence of competitive pressure. This necessitates robust internal cost analysis and negotiation to ensure the awarded price is justified.

Public Impact

The U.S. Coast Guard benefits from continued non-recurring engineering services for its aircraft, likely enhancing operational capabilities. Services delivered will support the development and improvement of aircraft systems, contributing to aviation safety and effectiveness. The geographic impact is primarily linked to the contractor's location in North Carolina and the operational bases of the Coast Guard. Workforce implications include specialized engineering roles at Sikorsky Aircraft Corporation, supporting high-skilled employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Cost-plus-fixed-fee contract type can lead to cost overruns if not managed diligently.
Lack of small business participation may limit opportunities for smaller, innovative firms in the aerospace sector.

Positive Signals

Continuation of critical engineering services ensures ongoing support for vital Coast Guard aviation assets.
Award to an established contractor (Sikorsky) suggests a degree of confidence in their technical expertise and past performance.
The contract supports specialized engineering roles, contributing to the skilled aerospace workforce.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically focusing on non-recurring engineering services. The aerospace industry is characterized by high R&D costs, complex supply chains, and significant government procurement. Comparable spending benchmarks for specialized engineering services can vary widely based on the complexity of the aircraft and the scope of the engineering work. The total award value of $11.8 million for over 1.5 years of service suggests a focused engineering effort on specific aircraft improvements or development.

Small Business Impact

This contract does not appear to include a small business set-aside, nor is there an indication of subcontracting requirements for small businesses. The award to a large prime contractor like Sikorsky Aircraft Corporation suggests that opportunities for small businesses may be limited unless they are part of Sikorsky's existing supply chain or are brought in as subcontractors independently. This could mean a missed opportunity to foster small business growth within this specific contract's scope.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting and program management offices. As a delivery order under a larger program, existing oversight mechanisms may be in place. Transparency could be enhanced by public reporting of cost performance and milestones achieved. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Aircraft Manufacturing
Non-Recurring Engineering Services
U.S. Coast Guard Aviation Programs
Department of Homeland Security Procurement

Risk Flags

Sole Source Award
Cost-Plus-Fixed-Fee Contract Type
Potential for Cost Overruns
Lack of Competitive Bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.9 million to SIKORSKY AIRCRAFT CORPORATION. SPRINT 3.0 ORDER TO CONTINUE NON-RECURRING ENGINEERING SERVICES

Who is the contractor on this award?

The obligated recipient is SIKORSKY AIRCRAFT CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $11.9 million.

What is the period of performance?

Start: 2025-12-04. End: 2027-06-30.

What is Sikorsky Aircraft Corporation's track record with the U.S. Coast Guard and Department of Homeland Security?

Sikorsky Aircraft Corporation, a subsidiary of Lockheed Martin, has a long-standing history of providing aircraft and support services to various government agencies, including the U.S. Coast Guard. Their involvement with the Coast Guard likely spans decades, encompassing the manufacturing, maintenance, and modernization of various helicopter platforms essential for maritime security, search and rescue, and law enforcement operations. Past contracts would detail their performance in delivering complex aviation systems, meeting stringent operational requirements, and providing sustainment support. Examining specific past delivery orders and prime contracts would reveal their performance metrics, on-time delivery rates, and adherence to budget, providing context for their current sole-source award.

How does the $11.8 million value compare to similar non-recurring engineering contracts for aircraft?

Benchmarking the $11.8 million value for non-recurring engineering (NRE) services requires comparing it against similar sole-source or competitively awarded contracts for aircraft NRE. NRE costs can vary dramatically based on the complexity of the engineering task, the specific aircraft platform, and the duration of the effort. For instance, developing a new avionics suite or significantly redesigning a rotor system would incur substantially higher NRE costs than minor modifications or software upgrades. Without detailed scope of work for this SPRINT 3.0 order, direct comparison is challenging. However, for a multi-year effort focused on significant engineering tasks, $11.8 million might be considered moderate, but a competitive process would have provided a clearer indication of market-driven pricing.

What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract for engineering services?

The primary risks associated with a sole-source, cost-plus-fixed-fee (CPFF) contract for engineering services are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher prices than might be achieved through open bidding. The government relies heavily on negotiation and internal cost analysis to ensure fairness. Secondly, the CPFF structure, while providing flexibility for evolving engineering requirements, carries inherent risks of cost overruns. The contractor is reimbursed for allowable costs plus a predetermined fixed fee. If costs escalate beyond initial estimates, the government pays more, although the contractor's profit (the fixed fee) remains constant. Effective oversight is crucial to scrutinize allowable costs and prevent scope creep that inflates the total expenditure.

How effective is the U.S. Coast Guard's current fleet sustainment strategy, and how does this contract contribute?

This contract for SPRINT 3.0 non-recurring engineering services directly contributes to the U.S. Coast Guard's fleet sustainment strategy by focusing on the development and improvement of existing aircraft capabilities. Effective fleet sustainment ensures that the Coast Guard's aviation assets remain operational, safe, and capable of fulfilling their diverse missions, from maritime security to search and rescue. NRE services are critical for modernizing aging platforms, incorporating new technologies, and addressing obsolescence issues. By investing in these engineering efforts, the Coast Guard aims to extend the service life of its aircraft, enhance their performance, and reduce long-term operational and maintenance costs, thereby supporting the overall effectiveness and readiness of its aviation division.

What are the historical spending patterns for non-recurring engineering services within the U.S. Coast Guard's aviation programs?

Historical spending patterns for non-recurring engineering (NRE) services within the U.S. Coast Guard's aviation programs typically fluctuate based on major modernization efforts, platform upgrades, or the introduction of new aircraft types. Significant investments in NRE are often concentrated during specific program phases, such as initial design, prototyping, or major system integration projects. The Coast Guard, like other military and security branches, allocates substantial resources to ensure its aviation assets remain technologically relevant and operationally effective. Analyzing past NRE expenditures across different aircraft types (e.g., helicopters like the MH-60 Jayhawk or fixed-wing aircraft) would reveal trends in investment priorities and the typical cost profiles for various engineering undertakings, providing context for the current $11.8 million award.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 6900 MAIN ST, STRATFORD, CT, 06614

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,013,856

Exercised Options: $15,013,856

Current Obligation: $11,862,683

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 70Z02321DAMH00400

IDV Type: IDC

Timeline