Kaman Aerospace awarded $26.7M for H-2 aircraft support, including upgrade kits and program management

Contract Overview

Contract Amount: $26,674,508 ($26.7M)

Contractor: Kaman Aerospace Corporation

Awarding Agency: Department of Defense

Start Date: 2010-10-29

End Date: 2020-07-24

Contract Duration: 3,556 days

Daily Burn Rate: $7.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IN-COUNTRY SUPPORT, LONG LEAD ITEMS FOR FIVE (5) CONSOLIDATED UPGRADE KITS, ASSOCIATED PROGRAM MANAGEMENT, AND TRAVEL FOR EGYPTIAN AIR FORCE H-2 AIRCRAFT.

Place of Performance

Location: BLOOMFIELD, HARTFORD County, CONNECTICUT, 06002

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $26.7 million to KAMAN AEROSPACE CORPORATION for work described as: IN-COUNTRY SUPPORT, LONG LEAD ITEMS FOR FIVE (5) CONSOLIDATED UPGRADE KITS, ASSOCIATED PROGRAM MANAGEMENT, AND TRAVEL FOR EGYPTIAN AIR FORCE H-2 AIRCRAFT. Key points: 1. Contract provides essential long-lead items and program management for Egyptian Air Force H-2 aircraft. 2. The definitive contract structure suggests a long-term relationship for ongoing support. 3. Fixed-price terms aim to control costs, but potential for cost overruns exists with long-duration contracts. 4. The contract's duration of 3556 days indicates a significant commitment to sustainment. 5. Focus on in-country support and travel highlights the logistical complexities of foreign military sales. 6. The absence of competition raises questions about price reasonableness and potential for better value.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging due to its specific nature supporting foreign military aircraft and the lack of publicly available comparable data. The firm fixed-price structure is generally favorable for cost control, but the extended duration and the inclusion of long-lead items introduce inherent risks. Without competitive bids, it's difficult to definitively assess if the $26.7 million represents optimal value for the services and parts provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The justification for this approach is not detailed in the provided data. Sole-source contracts can lead to higher prices and reduced innovation compared to competitive procurements, as the government lacks the leverage of multiple bidders vying for the contract.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competition, as the contractor faced no pressure to offer the lowest possible price.

Public Impact

The Egyptian Air Force benefits from continued operational readiness of its H-2 aircraft fleet. Services include the provision of critical upgrade kits and ongoing program management. The contract supports the U.S. foreign military sales program, strengthening international partnerships. Associated travel ensures on-site support and program oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing.
Long contract duration increases risk of cost escalation or scope creep.
Dependence on a single contractor for critical aircraft sustainment.

Positive Signals

Firm fixed-price contract provides cost certainty.
Focus on long-lead items ensures availability of critical components.
In-country support aims to improve efficiency and reduce logistical burdens.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector, specifically supporting aircraft sustainment and upgrades. The market for specialized aircraft parts and support services, particularly for legacy platforms like the H-2, can be niche. Spending in this area is often driven by foreign military sales agreements and the need to maintain the operational readiness of allied air forces.

Small Business Impact

The provided data does not indicate any small business set-aside provisions or subcontracting requirements for this contract. As a sole-source award to Kaman Aerospace Corporation, it is unlikely that small businesses were directly involved in the primary contract execution, though they may have served as lower-tier suppliers.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices, responsible for ensuring compliance with contract terms and performance standards. As a foreign military sale, additional oversight may be provided by the Defense Security Cooperation Agency. Transparency is limited by the sole-source nature and the specific context of international sales.

Related Government Programs

Foreign Military Sales Program
Aircraft Depot Maintenance
Aerospace Parts Manufacturing
Defense Logistics Support

Risk Flags

Sole-source award lacks competitive pricing.
Long contract duration increases risk exposure.
Potential for cost overruns on long-lead items.
Limited transparency due to foreign military sales context.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to KAMAN AEROSPACE CORPORATION. IN-COUNTRY SUPPORT, LONG LEAD ITEMS FOR FIVE (5) CONSOLIDATED UPGRADE KITS, ASSOCIATED PROGRAM MANAGEMENT, AND TRAVEL FOR EGYPTIAN AIR FORCE H-2 AIRCRAFT.

Who is the contractor on this award?

The obligated recipient is KAMAN AEROSPACE CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26.7 million.

What is the period of performance?

Start: 2010-10-29. End: 2020-07-24.

What is the track record of Kaman Aerospace Corporation in fulfilling similar defense contracts, particularly those involving foreign military sales?

Kaman Aerospace Corporation has a long history of providing aerospace components, systems, and services to both the U.S. military and international customers. They are known for their work on various rotorcraft and fixed-wing aircraft, including components for helicopters and unmanned aerial systems. Their experience often includes manufacturing, modification, and sustainment services. For foreign military sales, Kaman has previously supplied parts and support for aircraft operated by allied nations. While specific details on past H-2 support contracts are not readily available in the public domain, their general profile suggests they possess the technical capability and experience to manage complex sustainment programs like the one awarded. However, a deeper dive into past performance metrics, including on-time delivery, quality adherence, and cost control on similar FMS contracts, would be necessary for a comprehensive assessment.

How does the pricing structure of this contract compare to industry benchmarks for aircraft sustainment and upgrade services?

Directly comparing the pricing of this $26.7 million contract to industry benchmarks is difficult without detailed cost breakdowns and specific service inclusions. The contract covers 'long-lead items,' 'consolidated upgrade kits,' 'program management,' and 'travel,' which are diverse cost elements. Firm fixed-price contracts aim for predictability, but the 'long-lead' nature of components and the extended duration (over 9 years) introduce significant variables. Generally, sole-source contracts tend to be priced higher than competitively bid ones due to the lack of market pressure. To benchmark effectively, one would need to analyze the cost per upgrade kit, the program management overhead rate, and the travel expenses against similar sustainment contracts for comparable aircraft types, ideally those awarded competitively. Without such granular data and competitive context, assessing the 'value-for-money' remains speculative.

What are the primary risks associated with the long duration and sole-source nature of this contract?

The primary risks associated with this contract stem from its extended duration (3556 days) and its sole-source award. The long duration increases the likelihood of unforeseen cost increases due to inflation, supply chain disruptions, or changes in material costs, even under a fixed-price agreement. Scope creep, where additional requirements are added over time, is also a risk that can strain the fixed price. The sole-source nature eliminates competitive pressure, potentially leading to less favorable pricing for the government and a reduced incentive for the contractor to optimize efficiency. Furthermore, reliance on a single supplier for critical components and services creates a vulnerability; any performance issues or financial instability with Kaman Aerospace could significantly impact the Egyptian Air Force's H-2 operational readiness.

How effective is the 'in-country support' and 'program management' likely to be given the contract details?

The effectiveness of 'in-country support' and 'program management' hinges on the specific implementation details, which are not fully elaborated in the provided data. 'In-country support' suggests a strategy to provide maintenance, training, or logistical assistance within Egypt, which can enhance responsiveness and reduce transit times for repairs. However, its success depends on the availability of qualified personnel, necessary infrastructure, and clear communication channels. 'Program management' is crucial for coordinating the delivery of upgrade kits, managing the long-lead item procurement, overseeing travel, and ensuring overall contract compliance. Kaman Aerospace's experience in managing complex aerospace programs will be a key factor. The effectiveness will be measured by the timely delivery of upgrades, the successful integration of new components, and the overall improvement in the H-2 aircraft's performance and reliability for the Egyptian Air Force.

What are the historical spending patterns for the H-2 aircraft sustainment program, and how does this contract fit within that trend?

Historical spending data for the H-2 aircraft sustainment program, particularly concerning foreign military sales to Egypt, is not publicly detailed in the provided information. The H-2 (also known as the Sea Sprite) is an older platform, and sustainment costs can fluctuate significantly based on the fleet's remaining service life, the availability of parts, and the extent of modernization efforts. This $26.7 million contract, spanning nearly a decade, represents a substantial, long-term investment in keeping these aircraft operational. It likely reflects a period where Egypt is focused on maintaining its existing fleet rather than acquiring new platforms. Without prior contract values or spending trends for this specific program, it's difficult to definitively state if this award is higher or lower than historical norms, but its scale suggests a significant ongoing commitment to the H-2's operational status.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001910R0044

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kaman Corp (UEI: 001155225)

Address: OLD WINDSOR RD, BLOOMFIELD, CT, 06002

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: $26,674,508

Exercised Options: $26,674,508

Current Obligation: $26,674,508

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline