DoD's $32.2M Contract for Aircraft Parts Awarded to Sikorsky Aircraft Corporation

Contract Overview

Contract Amount: $32,208,861 ($32.2M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2017-03-24

End Date: 2023-07-31

Contract Duration: 2,320 days

Daily Burn Rate: $13.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SPARES

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $32.2 million to SIKORSKY AIRCRAFT CORPORATION for work described as: SPARES Key points: 1. Significant spending on aircraft parts highlights ongoing defense needs. 2. Sole-source award to Sikorsky Aircraft Corporation raises questions about competition. 3. Long contract duration (2017-2023) suggests a sustained requirement. 4. The $32.2M value represents a substantial investment in aviation sustainment.

Value Assessment

Rating: questionable

The contract value of $32.2M is difficult to assess without specific unit cost data. However, the lack of competition and the long duration may indicate a premium was paid compared to potentially more competitive scenarios.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Sikorsky Aircraft Corporation, was considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition in this sole-source award likely results in a higher cost to taxpayers than if multiple vendors had been allowed to bid.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. Dependence on a single supplier can create vulnerabilities in the supply chain. The long-term nature of the contract impacts budget predictability for the DoD. Ensuring the quality and necessity of these parts is crucial for aircraft readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration

Positive Signals

Sustained requirement for critical aircraft parts
Established relationship with a major defense contractor

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military aviation readiness. Benchmarks are difficult without specific part details, but large sole-source awards warrant scrutiny.

Small Business Impact

This contract was awarded to Sikorsky Aircraft Corporation, a large defense contractor, and does not appear to involve small businesses as prime contractors. Opportunities for small businesses may exist further down the supply chain.

Oversight & Accountability

The sole-source nature of this award suggests limited oversight on price competition. Further review by oversight bodies would be beneficial to ensure fair pricing and value for taxpayer dollars.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competition.
Long contract duration may not reflect current market conditions.
Lack of transparency in pricing justification.
Dependency on a single supplier.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.2 million to SIKORSKY AIRCRAFT CORPORATION. SPARES

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 $32.2 million.

What is the period of performance?

Start: 2017-03-24. End: 2023-07-31.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies explored?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without specific documentation, it's unclear if alternative competitive strategies were thoroughly explored. A review of the justification is essential to understand if the government received the best possible value under the circumstances.

How does the unit cost of these aircraft parts compare to similar components purchased competitively or from other sources?

Comparing unit costs is challenging without detailed product specifications and market data. However, given the sole-source nature, it is probable that the unit costs are higher than they would be in a competitive environment. Benchmarking against similar parts procured through competitive means is crucial for assessing value.

What is the long-term strategic impact of relying on a single supplier for these critical aircraft parts?

Long-term reliance on a single supplier can create significant strategic risks, including supply chain disruptions, price escalation, and reduced innovation. It also limits the government's leverage in negotiations. Diversifying suppliers or developing alternative sources should be considered to mitigate these risks.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corporation

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: $32,208,861

Exercised Options: $32,208,861

Current Obligation: $32,208,861

Actual Outlays: $2,144,001

Subaward Activity

Number of Subawards: 266

Total Subaward Amount: $12,439,627

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001914G0004

IDV Type: BOA

Timeline