Department of Defense awards $169M contract for aircraft structural component maintenance and repair to Sikorsky Support Services Inc

Contract Overview

Contract Amount: $16,913,315 ($16.9M)

Contractor: Sikorsky Support Services Inc

Awarding Agency: Department of Defense

Start Date: 2005-02-02

End Date: 2009-02-01

Contract Duration: 1,460 days

Daily Burn Rate: $11.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: 200512!150073!1700!M00146!RECEIVING OFFICER !M0014605C9005 !A!N! !N! ! !20050202!20060201!107254062!107254062!001344142!N!SIKORSKY SUPPORT SERVICES INC !6900 MAIN ST !STRATFORD !CT!06614!00000! !IZ!* !* !IRAQ !+000003343489!N!N!000011588109!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !S1 !SERVICES !000 !* !488190!E! !3! ! ! ! ! !20200930!B! ! !A! !D!U!Y!1!001!N!1A!Z!Y!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! !Y!1700!M00146!0001! !

Plain-Language Summary

Department of Defense obligated $16.9 million to SIKORSKY SUPPORT SERVICES INC for work described as: 200512!150073!1700!M00146!RECEIVING OFFICER !M0014605C9005 !A!N! !N! ! !20050202!20060201!107254062!107254062!001344142!N!SIKORSKY SUPPORT SERVICES INC !6900 MAIN ST !STRATFORD !CT!06614!00000! !IZ!* !* … Key points: 1. Contract awarded for maintenance and repair of aircraft structural components. 2. Significant portion of spending allocated to Iraq operations. 3. Contract duration of 1460 days indicates a long-term support requirement. 4. Awarded as a Time and Materials contract, suggesting variable labor and material costs. 5. No small business set-aside was utilized for this contract. 6. Contractor has a history of receiving significant federal awards.

Value Assessment

Rating: fair

The total award amount of $169,133,153.39 for aircraft structural component maintenance and repair appears substantial. Benchmarking this against similar contracts is challenging without more specific service details and performance metrics. However, the duration of the contract (1460 days) and the nature of Time and Materials pricing suggest potential for cost escalation if not closely managed. The allocation of a significant portion of the work to Iraq also implies higher operational costs and risks.

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 a specific contractor possesses unique capabilities, proprietary technology, or when urgent circumstances preclude a competitive process. The lack of competition means that the government did not benefit from price discovery through a bidding process, potentially leading to higher costs than if multiple offers had been considered.

Taxpayer Impact: For taxpayers, a sole-source award means the absence of competitive pressure to drive down prices. This can result in a less favorable price for the government and, consequently, for taxpayers.

Public Impact

The primary beneficiaries are military operations, specifically those requiring maintenance and repair of aircraft structural components. Services delivered include essential maintenance and repair to ensure aircraft airworthiness and operational readiness. Geographic impact is heavily concentrated in Iraq, supporting deployed forces. Workforce implications include employment for skilled technicians and support personnel required for aircraft maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Time and Materials contract type can lead to cost overruns if not managed diligently.
Significant allocation to a high-risk operational environment like Iraq may incur additional logistical and safety costs.
Lack of transparency in the sole-source justification requires careful review.
Contract duration of over 3 years necessitates ongoing performance monitoring.

Positive Signals

Sikorsky Support Services Inc. is a known entity in aviation support, suggesting established expertise.
The contract addresses a critical need for aircraft maintenance, ensuring operational readiness.
The award amount, while large, reflects the complexity and scale of aircraft structural maintenance.
The contract is for a defined period, allowing for structured oversight.
The specific nature of the work (structural components) implies a focus on safety and reliability.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aviation support services. The market for aircraft maintenance, repair, and overhaul (MRO) is substantial, with significant government spending driven by military aviation needs. Comparable spending benchmarks would involve analyzing other large-scale MRO contracts for military aircraft, particularly those supporting deployed operations. The nature of the services, focusing on structural components, is a critical niche within the overall MRO market.

Small Business Impact

This contract did not include a small business set-aside. As a sole-source award to a large prime contractor, there is no direct mechanism within this award to ensure small business participation. Subcontracting opportunities for small businesses would depend on Sikorsky Support Services Inc.'s internal procurement strategies and their willingness to engage small businesses for specialized services related to aircraft structural components. The impact on the small business ecosystem is neutral to potentially negative if prime contractors do not actively seek out small business partners.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, the contracting agency. Given it's a Time and Materials contract, rigorous monitoring of labor hours, material costs, and justification for expenditures is crucial. Accountability measures would involve performance reviews, adherence to contract terms, and potential penalties for non-performance. Transparency is limited due to the sole-source nature, but contract modifications, payment reports, and performance metrics should be available through federal procurement databases. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.

Related Government Programs

Aircraft Maintenance and Repair
Aviation Support Services
Defense Logistics Support
Iraq Operations Support
Airframe Structural Repair

Risk Flags

Sole Source Justification
Time and Materials Pricing
High-Risk Operational Environment (Iraq)
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to SIKORSKY SUPPORT SERVICES INC. 200512!150073!1700!M00146!RECEIVING OFFICER !M0014605C9005 !A!N! !N! ! !20050202!20060201!107254062!107254062!001344142!N!SIKORSKY SUPPORT SERVICES INC !6900 MAIN ST !STRATFORD !CT!06614!00000! !IZ!* !* !IRAQ !+000003343489!N!N!000011588109!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !S1 !SERVICES !000 !* !488190!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is SIKORSKY SUPPORT SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2005-02-02. End: 2009-02-01.

What is the historical spending pattern of Sikorsky Support Services Inc. with the federal government, particularly for similar services?

Sikorsky Support Services Inc. has a significant history of federal contracting, primarily with the Department of Defense. Their awards often relate to helicopter and aircraft maintenance, repair, and overhaul services. Analyzing their contract history reveals substantial cumulative awards over the years, reflecting their role as a key provider of aviation support. For instance, prior contracts may have involved similar structural component maintenance, logistics support, or depot-level maintenance. Understanding the volume and nature of these past awards provides context for the current contract's scale and scope, and helps assess the contractor's experience and capacity to fulfill such requirements. It also allows for comparison of pricing trends and performance across different contract vehicles over time.

How does the awarded amount compare to the estimated value or budget for this type of service?

The awarded amount of $169,133,153.39 represents the total value obligated under this Time and Materials contract. Without access to the government's initial cost estimates or pre-negotiated rates, a direct comparison of the awarded amount to the budget is difficult. However, the fact that it was awarded on a sole-source basis suggests that the government may have had a specific cost expectation or justification for this vendor. The Time and Materials pricing structure means the final cost is dependent on actual labor hours and material costs incurred. Therefore, while the initial award is substantial, the final expenditure could vary. Benchmarking against similar sole-source awards for aircraft structural maintenance could provide some indication of value, but the unique operational context (Iraq) adds complexity.

What are the key performance indicators (KPIs) and performance standards associated with this contract?

Key performance indicators (KPIs) for a contract involving aircraft structural component maintenance and repair typically focus on ensuring airworthiness, operational readiness, and timely completion of tasks. Specific KPIs might include the Mean Time Between Failures (MTBF) for repaired components, the percentage of aircraft available for mission deployment (aircraft availability rate), turnaround time for repairs, and adherence to quality standards (e.g., zero defects). Performance standards would be detailed in the Performance Work Statement (PWS), outlining requirements for technical proficiency, safety protocols, documentation, and reporting. Failure to meet these KPIs and standards could result in contract penalties, reduced payments, or termination.

What is the risk assessment associated with this contract, considering its sole-source nature and operational environment?

The primary risks associated with this contract stem from its sole-source award and the operational environment in Iraq. The sole-source nature eliminates competitive pressure, increasing the risk of the government paying a premium for services and potentially receiving less favorable terms. There's also a risk that the contractor may not be as incentivized to innovate or improve efficiency. The operational environment in Iraq introduces risks related to security, logistics, supply chain disruptions, and potentially higher labor costs due to hazardous duty pay and increased insurance. Furthermore, the Time and Materials contract type carries inherent risks of cost escalation if not meticulously managed and monitored by the contracting officer.

How has the geographic allocation (Iraq) influenced the contract's cost and complexity?

The significant allocation of this contract's work to Iraq directly influences its cost and complexity. Operating in a deployed, potentially hazardous environment typically incurs higher costs due to factors such as hazardous duty pay for personnel, increased security requirements, specialized logistics for transporting parts and equipment, and potentially higher insurance premiums. The complexity is also heightened by the need to navigate local regulations, manage supply chains across borders, and ensure the safety and well-being of personnel in a challenging operational theater. These factors contribute to a higher overall cost compared to similar maintenance performed in a CONUS (Continental United States) location.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 6900 MAIN ST, STRATFORD, CT, 03

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline