DoD's Presidential Helicopter Replacement Program contract nears $3B for Sikorsky Aircraft, with EMD phase ongoing

Contract Overview

Contract Amount: $3,010,046,249 ($3.0B)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2014-05-07

End Date: 2026-12-31

Contract Duration: 4,621 days

Daily Burn Rate: $651.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: IGF::OT::IGF PRESIDENTIAL HELICOPTER REPLACEMENT PROGRAM (VXX) ENGINEERING AND MANUFACTURING DEVELOPMENT (EMD) PHASE OF THE PROGRAM. THE CONTRACT ALSO INCLUDES NOT-TO-EXCEED OPTION PRICES FOR LOW RATE INITIAL PRODUCTION (LRIP) AND FULL RATE PRODUCTION (FRP).

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $3.01 billion to SIKORSKY AIRCRAFT CORPORATION for work described as: IGF::OT::IGF PRESIDENTIAL HELICOPTER REPLACEMENT PROGRAM (VXX) ENGINEERING AND MANUFACTURING DEVELOPMENT (EMD) PHASE OF THE PROGRAM. THE CONTRACT ALSO INCLUDES NOT-TO-EXCEED OPTION PRICES FOR LOW RATE INITIAL PRODUCTION (LRIP) AND FULL RATE PRODUCTION (FRP). Key points: 1. The contract, valued at over $3 billion, covers engineering, manufacturing, and potential production phases for a new presidential helicopter. 2. Sikorsky Aircraft Corporation is the sole awardee, raising questions about competition and potential price impacts. 3. The program faces risks associated with long-term development and production schedules extending to 2026. 4. Spending in the Aircraft Manufacturing sector for defense programs can be substantial, requiring careful oversight.

Value Assessment

Rating: questionable

The contract's total value is substantial, and while specific pricing for each phase isn't detailed, the fixed-price incentive structure suggests potential for cost overruns if performance targets are not met efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition. However, the award to a single entity, Sikorsky Aircraft Corporation, suggests this may be the only qualified bidder or that subsequent phases might be sole-sourced.

Taxpayer Impact: The significant investment in this program represents a major taxpayer commitment to national security and presidential transport capabilities.

Public Impact

Ensures the continuation of secure and reliable presidential air transport. Supports advanced aerospace manufacturing and technological development within the US. Potential for job creation in the aerospace sector. Long-term commitment of significant federal funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration with potential for schedule slippage.
Sole awardee raises concerns about sustained competition.
High total contract value requires diligent oversight.

Positive Signals

Awarded under full and open competition.
Addresses a critical national security requirement.
Includes provisions for production phases, indicating a clear path forward.

Sector Analysis

The Department of Defense's investment in aircraft manufacturing, particularly for high-value, specialized platforms like presidential helicopters, is a significant component of its R&D and procurement budget. Benchmarks for similar complex aircraft development programs are often in the billions.

Small Business Impact

While the prime contractor is Sikorsky Aircraft Corporation, the contract details do not specify the extent of small business participation. Large defense contracts often involve complex supply chains where small businesses can play a role, but this needs explicit tracking.

Oversight & Accountability

The Department of the Navy is responsible for oversight. Given the program's scale and duration, continuous monitoring by the Inspector General and relevant congressional committees is crucial to ensure cost control and adherence to specifications.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

High contract value.
Long performance period.
Potential for cost growth in production phases.
Sole awardee may limit future competitive pressure.
Complexity of advanced aerospace manufacturing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.01 billion to SIKORSKY AIRCRAFT CORPORATION. IGF::OT::IGF PRESIDENTIAL HELICOPTER REPLACEMENT PROGRAM (VXX) ENGINEERING AND MANUFACTURING DEVELOPMENT (EMD) PHASE OF THE PROGRAM. THE CONTRACT ALSO INCLUDES NOT-TO-EXCEED OPTION PRICES FOR LOW RATE INITIAL PRODUCTION (LRIP) AND FULL RATE PRODUCTION (FRP).

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 Navy).

What is the total obligated amount?

The obligated amount is $3.01 billion.

What is the period of performance?

Start: 2014-05-07. End: 2026-12-31.

What is the projected cost per helicopter at the full rate production phase, and how does it compare to previous presidential helicopter programs?

The provided data does not detail the per-unit cost for the production phases. This information is critical for assessing long-term value and should be a key focus of ongoing oversight. Comparisons to prior programs would require access to historical cost data for similar specialized aircraft.

What are the specific performance metrics and risk mitigation strategies tied to the fixed-price incentive contract structure?

The fixed-price incentive structure aims to share cost risks between the government and the contractor. Specific metrics and mitigation strategies are typically detailed in the contract's statement of work and associated appendices. Understanding these is vital for assessing the government's protection against cost overruns and schedule delays.

How will the effectiveness of the new presidential helicopter be measured post-delivery, and what are the key operational requirements it must meet?

Effectiveness will likely be measured against stringent operational requirements, including safety, reliability, survivability, and mission capability in diverse environments. Post-delivery assessments would involve rigorous testing and operational deployment feedback to ensure the platform meets the unique demands of presidential transport.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001913R0060

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,017,897,050

Exercised Options: $3,017,897,050

Current Obligation: $3,010,046,249

Actual Outlays: $82,059,911

Subaward Activity

Number of Subawards: 997

Total Subaward Amount: $753,095,288

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline