Boeing Sikorsky Comanche Team contract for aircraft R&D saw over $895M in obligations, spanning 15 years

Contract Overview

Contract Amount: $895,462,282 ($895.5M)

Contractor: Boeing Sikorsky Comanche Team

Awarding Agency: Department of Defense

Start Date: 1996-12-31

End Date: 2011-08-17

Contract Duration: 5,342 days

Daily Burn Rate: $167.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 199712!2100!6020!AJ09 !USA AVIATION AND TROOP COMMAND !DAAJ0991CA004 !A!*!P00111 !19961231!20020930!963957972!963957972!963957972!N!0APX0!BOEING SIKORSKY COMANCHE TEAM !INTERNTONAL PLZ 2 STE 645 !PHILADELPHIA !PA!19113!60000!101!42!PHILADELPHIA !PHILADELPHIA !PENN !0001!+000050000000!N!N!000000000000!AC13!RDTE/AIRCRAFT-ADV TECH DEV !A1C!OTHER AIRCRAFT EQUIPMENT !1000!NOT DISCERNABLE OR CLASSIFIED !9999!3!*!S!B!B!A!*!A !N!V!2!002!N!1G!A!Y!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: PHILADELPHIA, DELAWARE County, PENNSYLVANIA, 19113

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $895.5 million to BOEING SIKORSKY COMANCHE TEAM for work described as: 199712!2100!6020!AJ09 !USA AVIATION AND TROOP COMMAND !DAAJ0991CA004 !A!*!P00111 !19961231!20020930!963957972!963957972!963957972!N!0APX0!BOEING SIKORSKY COMANCHE TEAM !INTERNTONAL PLZ 2 STE 645 !PHILADELPHIA !PA!19113!60000!101!42!PHILADELPHIA !PHILAD… Key points: 1. Contract aimed at advancing aircraft technology, indicating a focus on innovation and future capabilities. 2. Long contract duration suggests a complex, multi-phase development or research project. 3. Significant funding indicates a high-priority program within the Department of Defense. 4. The contract type (Cost Plus Award Fee) incentivizes performance while managing costs. 5. Involvement of a major defense contractor points to the scale and strategic importance of the project. 6. The 'Aircraft-Advanced Tech Dev' classification highlights its role in cutting-edge aerospace research.

Value Assessment

Rating: fair

The total obligations of over $895 million over a 15-year period represent a substantial investment in aircraft research and development. Benchmarking this against similar R&D contracts is challenging without more specific project details. However, the extended timeline and significant funding suggest a complex and potentially high-risk endeavor. The Cost Plus Award Fee structure implies that performance metrics were established, but the ultimate value for money depends on the successful development of the intended technologies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is a less common competition type. This suggests that while an initial broad solicitation may have occurred, specific criteria or circumstances led to the exclusion of certain potential bidders before the final selection. The exact number of bidders considered after exclusions is not detailed, making it difficult to fully assess the competitive landscape. This type of award can sometimes indicate a need for specialized capabilities.

Taxpayer Impact: The limited competition may have resulted in less aggressive pricing than a truly full and open competition, potentially leading to higher costs for taxpayers.

Public Impact

The primary beneficiaries are the Department of Defense and potentially future military aviation users who will benefit from advanced aircraft technologies. The contract supports the development of next-generation aircraft capabilities, enhancing national security. The project likely involves a highly skilled workforce in aerospace engineering, research, and development. Geographic impact is concentrated around the contractor's facilities, primarily in Pennsylvania, and associated research institutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'limited' competition raises questions about whether the most cost-effective solutions were secured.
The long duration and significant funding increase the risk of cost overruns or scope creep.
The specific technological advancements achieved are not detailed, making it hard to assess the return on investment.
The exclusion of sources in the competition process warrants further investigation into the justification.

Positive Signals

The contract is with a major, established defense contractor (Boeing Sikorsky), suggesting a high level of expertise and capability.
The Cost Plus Award Fee structure provides an incentive for the contractor to meet performance goals.
The focus on R&D indicates a commitment to future technological superiority.
The long-term nature of the contract suggests a strategic and sustained investment in a critical capability.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on research, development, testing, and evaluation (RDT&E) for aircraft. The market for advanced military aircraft development is characterized by high barriers to entry, significant government investment, and long product cycles. Spending in this area is driven by national security priorities and the need for technological superiority. Comparable spending benchmarks would typically involve other major defense R&D programs for next-generation platforms.

Small Business Impact

There is no indication that this contract involved small business set-asides. Given the nature of advanced aircraft development, it is likely that the prime contractor, Boeing Sikorsky, would subcontract to other large aerospace firms or specialized technology providers. The impact on the broader small business ecosystem is not directly discernible from the provided data, but large prime contracts often have trickle-down effects through the supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management and acquisition oversight bodies, potentially including the Defense Contract Management Agency (DCMA) and the Inspector General. The Cost Plus Award Fee structure implies performance monitoring and evaluation against defined award criteria. Transparency is generally limited for defense R&D contracts due to security and proprietary concerns, but periodic reporting and milestone reviews are standard.

Related Government Programs

Advanced Aircraft Technology Development
R&D Contracts
Department of Defense Major Programs
Aerospace Engineering Services
Military Aircraft Procurement

Risk Flags

Limited competition may impact price discovery.
Long contract duration increases risk of scope creep and cost overruns.
Specific technological outcomes and ROI are not detailed.
Justification for exclusion of sources in competition needs review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $895.5 million to BOEING SIKORSKY COMANCHE TEAM. 199712!2100!6020!AJ09 !USA AVIATION AND TROOP COMMAND !DAAJ0991CA004 !A!*!P00111 !19961231!20020930!963957972!963957972!963957972!N!0APX0!BOEING SIKORSKY COMANCHE TEAM !INTERNTONAL PLZ 2 STE 645 !PHILADELPHIA !PA!19113!60000!101!42!PHILADELPHIA !PHILADELPHIA !PENN !0001!+000050000000!N!N!000000000000!AC13!RDTE/AIRCRAFT-ADV TECH DEV !A1C!OTHER AIRCRAFT EQUIPMENT !1000!NOT DISCERNABLE OR CLASSIFIED !9999!3!*!S!B!B!A!*!A !N!V!2!0

Who is the contractor on this award?

The obligated recipient is BOEING SIKORSKY COMANCHE TEAM.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $895.5 million.

What is the period of performance?

Start: 1996-12-31. End: 2011-08-17.

What specific aircraft technologies was this contract intended to develop?

The contract data indicates the project falls under 'RDTE/AIRCRAFT-ADV TECH DEV' and 'OTHER AIRCRAFT EQUIPMENT'. While the specific technological goals are not detailed in the provided summary, this classification suggests the contract was aimed at advancing fundamental capabilities for future aircraft. This could encompass areas such as new airframe designs, propulsion systems, avionics, stealth technology, or advanced materials. The long duration and substantial funding imply a significant undertaking, likely involving research into multiple integrated technologies rather than a single component.

How does the total contract value compare to similar advanced aircraft R&D programs?

Direct comparison of the total obligations ($895M+) over 15 years to similar programs is difficult without knowing the specific technological scope and objectives. However, major defense R&D programs for next-generation platforms often run into billions of dollars over their lifecycle. This contract appears to be a significant investment, consistent with the development of cutting-edge military aviation technology. Programs like the development of the F-35 or the now-canceled F-22B program involved tens to hundreds of billions in RDT&E and procurement.

What were the key performance metrics and award criteria for the Cost Plus Award Fee structure?

The specific performance metrics and award criteria for this Cost Plus Award Fee (CPAF) contract are not detailed in the provided data. Typically, CPAF contracts establish a base fee plus an additional award fee contingent upon the contractor meeting or exceeding specific performance objectives. These objectives often relate to technical performance, schedule adherence, cost control, and quality. For an advanced R&D contract like this, metrics might include achieving certain technological milestones, demonstrating system capabilities, or meeting specific performance targets within defined parameters.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' award type?

This award type suggests an initial broad solicitation process, but then specific sources were excluded before the final award decision. This is distinct from a sole-source award, as some competition likely occurred among the remaining eligible bidders. However, the exclusion of sources implies that not all interested and capable parties were allowed to compete for the final contract. The justification for such exclusions typically involves factors like national security, specific technical requirements that only a limited number of entities could meet, or prior performance issues with excluded entities.

What is the track record of Boeing Sikorsky in advanced aircraft R&D?

Boeing and Sikorsky (now part of Sikorsky Aircraft Corporation, a Lockheed Martin company) have extensive and well-established track records in advanced aircraft research and development, particularly in military aviation. Both companies have been instrumental in developing numerous fighter jets, helicopters, and experimental aircraft for the U.S. military and other nations. Their history includes pioneering technologies in areas such as stealth, rotorcraft design, and advanced avionics. This contract aligns with their core competencies and historical contributions to defense aviation innovation.

Were there any notable cost overruns or schedule delays associated with this contract?

The provided data indicates the contract had a duration of 5,342 days (approximately 14.6 years) and ended on August 17, 2011, with initial obligations starting December 31, 1996. The total obligations were $895,462,282.39. While the contract spanned a long period and involved significant funding, the data does not explicitly detail cost overruns or schedule delays relative to the original baseline. Long-duration R&D contracts often experience adjustments to scope, schedule, and funding due to the inherent uncertainties in technological development.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Address: INTERNTONAL PLZ 2 STE 645, PHILADELPHIA, PA, 19113

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline