DoD Awards $211.9M for Royal Australian Navy MH-60R Through-Life Support to Maritime Helicopter Support Company LLC
Contract Overview
Contract Amount: $211,936,822 ($211.9M)
Contractor: Maritime Helicopter Support Company LLC
Awarding Agency: Department of Defense
Start Date: 2012-12-12
End Date: 2020-01-31
Contract Duration: 2,606 days
Daily Burn Rate: $81.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE PURPOSE OF THIS CONTRACT ACTION IS TO PROVIDE THROUGH LIFE SUPPORT FOR THE ROYAL AUSTRALIAN NAVY MH-60R PROGRAM.
Place of Performance
Location: OWEGO, TIOGA County, NEW YORK, 13827
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $211.9 million to MARITIME HELICOPTER SUPPORT COMPANY LLC for work described as: THE PURPOSE OF THIS CONTRACT ACTION IS TO PROVIDE THROUGH LIFE SUPPORT FOR THE ROYAL AUSTRALIAN NAVY MH-60R PROGRAM. Key points: 1. Significant investment in specialized naval aviation support. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long-term contract (2012-2020) indicates critical, ongoing need. 4. Focus on a specific international defense program highlights niche market.
Value Assessment
Rating: questionable
The total award amount of $211.9M over 8 years for through-life support of MH-60R helicopters is substantial. Without competitive bids, it's difficult to assess if this represents fair market value compared to similar international support contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and may result in higher costs for the government compared to a competitive procurement.
Taxpayer Impact: Taxpayer funds are being used for international defense support, with limited transparency on cost-effectiveness due to the sole-source nature of the award.
Public Impact
Supports a key ally's critical defense capabilities. Ensures operational readiness of naval helicopters. Potential for follow-on contracts or related support services. Impacts the specialized aerospace and defense services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of detailed cost breakdown.
- Long contract duration without clear performance metrics.
Positive Signals
- Supports a key international defense partnership.
- Provides essential through-life support for critical assets.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on specialized support for naval aviation platforms. Spending benchmarks for similar international support contracts are difficult to ascertain due to the sole-source nature and specific program requirements.
Small Business Impact
The contract was awarded to Maritime Helicopter Support Company LLC, a single entity. There is no indication of small business participation in this sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny regarding the justification for not seeking competitive bids. Oversight should focus on ensuring the necessity and fair pricing of the support provided.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated costs
- Limited transparency on value for money
- International support contract
Tags
aircraft-manufacturing, department-of-defense, ny, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $211.9 million to MARITIME HELICOPTER SUPPORT COMPANY LLC. THE PURPOSE OF THIS CONTRACT ACTION IS TO PROVIDE THROUGH LIFE SUPPORT FOR THE ROYAL AUSTRALIAN NAVY MH-60R PROGRAM.
Who is the contractor on this award?
The obligated recipient is MARITIME HELICOPTER SUPPORT COMPANY LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $211.9 million.
What is the period of performance?
Start: 2012-12-12. End: 2020-01-31.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met through competition. Without further documentation, it's unclear if alternatives were explored. This lack of competition limits the government's ability to ensure the best possible price and value.
How does the per-unit cost or overall contract value compare to similar through-life support contracts for naval helicopters, either domestically or internationally?
Direct comparison is challenging due to the sole-source nature and specific program (RAN MH-60R). However, the significant value ($211.9M) over 8 years suggests a high cost per platform. Benchmarking against competitive contracts for similar platforms would be necessary to assess value for money.
What mechanisms are in place to ensure the effectiveness and efficiency of the through-life support provided under this contract?
As a firm-fixed-price contract, the contractor bears the risk of cost overruns. However, effectiveness and efficiency rely on clear performance metrics, regular reviews, and the government's ability to monitor service delivery. The sole-source nature necessitates robust government oversight to ensure value.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001913R0005
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2655 INTERPLEX DRIVE SUITE 103, TREVOSE, PA, 19053
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $211,936,822
Exercised Options: $211,936,822
Current Obligation: $211,936,822
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-12-12
Current End Date: 2020-01-31
Potential End Date: 2020-01-31 00:00:00
Last Modified: 2023-09-12
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