USAF awards $39M for Combat Rescue Helicopter software upgrades to Sikorsky Aircraft Corporation
Contract Overview
Contract Amount: $39,053,771 ($39.1M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2023-10-01
End Date: 2028-09-30
Contract Duration: 1,826 days
Daily Burn Rate: $21.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SOFTWARE DEVELOPMENT EFFORTS SUPPORTING LONG TERM CAPABILITIES UPGRADES ON THE USAF COMBAT RESCUE HELICOPTER.
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $39.1 million to SIKORSKY AIRCRAFT CORPORATION for work described as: SOFTWARE DEVELOPMENT EFFORTS SUPPORTING LONG TERM CAPABILITIES UPGRADES ON THE USAF COMBAT RESCUE HELICOPTER. Key points: 1. Contract focuses on critical software development for long-term capability enhancements. 2. Sole-source award to Sikorsky Aircraft Corporation raises questions about competition. 3. Significant investment in a specialized defense platform highlights strategic importance. 4. Potential for cost overruns exists with Cost Plus Fixed Fee contract type.
Value Assessment
Rating: fair
The contract value of $39.05 million for software development is substantial. Without specific benchmarks for similar helicopter software upgrades, a precise value assessment is difficult. The Cost Plus Fixed Fee structure necessitates close monitoring to ensure cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Sikorsky Aircraft Corporation, was considered. This limits price discovery and competitive pressure, potentially leading to higher costs than if multiple vendors had competed.
Taxpayer Impact: Taxpayer funds are being directed to a single contractor without competitive bidding, which may not represent the best value.
Public Impact
Enhances critical combat rescue capabilities for the U.S. Air Force. Supports advanced technology integration for a vital military asset. Ensures continued operational readiness and effectiveness of rescue helicopters.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Lack of clear performance metrics for software development.
Positive Signals
- Supports critical national defense capabilities.
- Invests in advanced technology for military effectiveness.
- Long-term contract provides stability for upgrades.
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending on specialized software for military platforms like helicopters is common, but the value can vary significantly based on complexity and system integration.
Small Business Impact
The contract was awarded to Sikorsky Aircraft Corporation, a large business. There is no indication of small business participation in this specific award, suggesting missed opportunities for small business engagement in this procurement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Robust oversight will be crucial to manage costs and ensure the contractor delivers the specified software capabilities effectively within the agreed-upon budget.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Potential for scope creep
- Lack of small business participation
- Long contract duration
Tags
aircraft-manufacturing, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.1 million to SIKORSKY AIRCRAFT CORPORATION. SOFTWARE DEVELOPMENT EFFORTS SUPPORTING LONG TERM CAPABILITIES UPGRADES ON THE USAF COMBAT RESCUE HELICOPTER.
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 Air Force).
What is the total obligated amount?
The obligated amount is $39.1 million.
What is the period of performance?
Start: 2023-10-01. End: 2028-09-30.
What is the justification for the sole-source award, and were alternative competitive strategies explored?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by a single vendor. For this contract, the specific rationale for not competing the award to Sikorsky Aircraft Corporation needs to be clearly documented by the Air Force. Exploring alternative competitive strategies, even for specialized upgrades, is generally preferred to ensure best value and foster innovation.
How will the Cost Plus Fixed Fee structure be managed to mitigate potential cost overruns?
Managing a Cost Plus Fixed Fee (CPFF) contract requires stringent oversight. The Air Force must establish clear cost accounting standards, conduct regular audits of contractor expenditures, and set realistic target costs. Performance incentives tied to cost savings or efficiency improvements can also help mitigate overruns. Continuous communication and detailed progress reviews are essential.
What are the key performance indicators (KPIs) for the software development, and how will success be measured?
Defining clear and measurable KPIs is crucial for software development contracts. These should include metrics related to functionality, performance, reliability, security, and adherence to timelines. The Air Force needs to establish a robust testing and validation process to ensure the developed software meets all requirements and effectively enhances the helicopter's capabilities.
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: $97,852,436
Exercised Options: $59,273,960
Current Obligation: $39,053,771
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $800,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA869223DB001
IDV Type: IDC
Timeline
Start Date: 2023-10-01
Current End Date: 2028-09-30
Potential End Date: 2030-09-30 00:00:00
Last Modified: 2026-01-05
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