DoD awards $11.8M contract for aircraft manufacturing support to Sikorsky Aircraft Corporation

Contract Overview

Contract Amount: $11,831,439 ($11.8M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2006-12-22

End Date: 2010-07-31

Contract Duration: 1,317 days

Daily Burn Rate: $9.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: VH INTEGRATED LOGISTIC SUPPORT

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to SIKORSKY AIRCRAFT CORPORATION for work described as: VH INTEGRATED LOGISTIC SUPPORT Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract was not competed, raising questions about potential price efficiencies. 3. Awarded to a single source, limiting opportunities for broader market engagement. 4. The duration of the contract was over three years, suggesting a significant support requirement. 5. The contract falls under the Aircraft Manufacturing industry code. 6. The award was made by the Defense Contract Management Agency.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source awards for similar integrated logistic support services. The firm-fixed-price structure provides some cost certainty, but the lack of competition means there's no direct market comparison to assess if the price represents optimal value for the government. Further analysis would require understanding the specific services rendered and the market rates for such specialized support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source can provide the required goods or services. The lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing and terms.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also reduces transparency in the procurement process.

Public Impact

The Department of Defense benefits from specialized integrated logistic support for its aircraft. This contract ensures the continued operational readiness of specific aircraft platforms. The services provided likely support maintenance, repair, and supply chain management for aviation assets. The geographic impact is primarily within the United States, supporting defense operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competed award.
Sole-source awards can reduce transparency and accountability in government spending.
Reliance on a single contractor may create long-term dependency and limit future flexibility.

Positive Signals

Firm-fixed-price contract provides cost certainty for the duration of the award.
Sikorsky Aircraft Corporation is a known entity in aircraft manufacturing, suggesting potential expertise.
The contract duration indicates a sustained need for these critical support services.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aircraft manufacturing and associated support services. The market for integrated logistic support is often specialized, with a limited number of prime contractors possessing the necessary expertise and security clearances. Spending in this area is critical for maintaining military readiness and operational capabilities.

Small Business Impact

There is no indication that this contract included small business set-asides. As a sole-source award to a large corporation, it is unlikely to have direct subcontracting opportunities for small businesses unless specified by the prime contractor. This contract does not appear to directly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the firm-fixed-price structure, but the lack of competition limits the scope for external oversight and comparison. Transparency is reduced due to the sole-source nature of the award.

Related Government Programs

Aircraft Manufacturing
Defense Logistics Support
Aerospace Services
Military Aircraft Maintenance

Risk Flags

Sole-source award
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to SIKORSKY AIRCRAFT CORPORATION. VH INTEGRATED LOGISTIC SUPPORT

Who is the contractor on this award?

The obligated recipient is SIKORSKY AIRCRAFT CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.8 million.

What is the period of performance?

Start: 2006-12-22. End: 2010-07-31.

What specific integrated logistic support services were provided under this contract?

The provided data indicates the contract was for 'VH INTEGRATED LOGISTIC SUPPORT' under NAICS code 336411 (Aircraft Manufacturing). While the specific services are not detailed, integrated logistic support typically encompasses a range of activities essential for maintaining aircraft operational readiness. This can include supply chain management, inventory control, maintenance, repair, overhaul (MRO), technical data management, training, and field support. Given the contractor, Sikorsky Aircraft Corporation, a major helicopter manufacturer, the support likely pertains to their specific helicopter platforms, ensuring the availability of spare parts, technical expertise, and maintenance procedures necessary for sustained flight operations and mission effectiveness.

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified when only one responsible source can provide the required goods or services. For specialized defense contracts, this often occurs due to unique technical requirements, proprietary technology, existing system integration, or the need for continuity of support for a specific platform where the original manufacturer is the only viable provider. In the case of Sikorsky Aircraft Corporation, it's probable that the integrated logistic support was deemed unique to their aircraft, requiring specialized knowledge, tooling, or access to proprietary technical data that only Sikorsky possessed, thus precluding competition.

How does the $11.8 million contract value compare to similar integrated logistic support contracts?

Directly comparing the $11.8 million value of this sole-source contract to similar integrated logistic support (ILS) contracts is difficult without more specific details on the scope of services and the platforms supported. ILS contracts can vary significantly in price based on the complexity of the aircraft, the duration of the support, the number of units supported, and the specific services included (e.g., depot-level maintenance vs. component repair). However, for a multi-year support contract for major defense aircraft, $11.8 million is a moderate figure. Without competitive benchmarks, it's hard to definitively assess if this represents good or poor value, but the lack of competition inherently limits the ability to confirm optimal pricing.

What is Sikorsky Aircraft Corporation's track record with government contracts, particularly for logistic support?

Sikorsky Aircraft Corporation, now a subsidiary of Lockheed Martin, has a long and extensive history of providing aircraft and support services to the U.S. military and international customers. They are a primary manufacturer of helicopters, including well-known platforms like the Black Hawk and Seahawk. Their track record with government contracts is substantial, encompassing numerous awards for aircraft production, upgrades, and, critically, integrated logistic support. While specific performance details for every contract are not publicly available, their continued role as a major defense contractor suggests a generally accepted capability and reliability in fulfilling complex government requirements, including the provision of logistic support for their aircraft fleets.

What are the potential risks associated with awarding a contract of this nature on a sole-source basis?

The primary risk associated with sole-source awards is the potential for inflated pricing due to the absence of competitive pressure. Taxpayers may end up paying more than necessary for the goods or services. Another risk is reduced innovation, as the contractor may have less incentive to improve efficiency or offer novel solutions when competition is not a factor. Furthermore, sole-source awards can create a dependency on a single provider, potentially limiting future flexibility and increasing switching costs if the government later decides to seek alternative solutions or if the contractor's performance falters. There's also a potential for reduced transparency in the procurement process.

What oversight mechanisms were in place for this specific contract?

For this contract, awarded by the Department of Defense and managed through the Defense Contract Management Agency (DCMA), oversight would have involved several layers. DCMA is responsible for contract administration, including monitoring contractor performance, ensuring compliance with contract terms and conditions, and verifying delivery of goods or services. The firm-fixed-price nature of the contract provides a degree of oversight through defined cost expectations. However, the sole-source aspect means that oversight is primarily focused on ensuring the contractor meets the agreed-upon requirements rather than on validating the competitiveness of the pricing. Audits and performance reviews would also be standard oversight tools.

Industry Classification

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

Product/Service Code: MAINT/REPAIR SHOP EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001905R0036

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 6900 MAIN STREET, STRATFORD, CT, 03

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,831,439

Exercised Options: $11,831,439

Current Obligation: $11,831,439

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001907D0004

IDV Type: IDC

Timeline