DoD Awards $58.4M for LRIP 2 Aircraft Spares to Sikorsky Aircraft Corporation
Contract Overview
Contract Amount: $58,395,297 ($58.4M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2018-09-20
End Date: 2024-04-01
Contract Duration: 2,020 days
Daily Burn Rate: $28.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LRIP 2 AIRCRAFT SPARES
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $58.4 million to SIKORSKY AIRCRAFT CORPORATION for work described as: LRIP 2 AIRCRAFT SPARES Key points: 1. Significant contract value for low-rate initial production spares. 2. Sole-source award to Sikorsky Aircraft Corporation raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Spares procurement is critical for ongoing aircraft readiness and operational effectiveness.
Value Assessment
Rating: questionable
The contract value of $58.4 million for LRIP 2 aircraft spares is substantial. Without competitive pricing data, it's difficult to assess if this represents fair value compared to similar sole-source procurements or market rates for specialized aircraft components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to Sikorsky Aircraft Corporation. This lack of competition limits price discovery and may result in less favorable pricing for the government compared to a fully competed procurement.
Taxpayer Impact: Taxpayer funds are committed without the benefit of competitive pressure to ensure the lowest possible price for these critical aircraft spares.
Public Impact
Ensures availability of essential parts for naval aircraft, supporting operational readiness. Supports a key defense contractor, potentially impacting the aerospace supply chain. Lack of competition may lead to higher long-term sustainment costs for the platform.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for cost overruns without competitive benchmarking.
- Long-term sustainment cost implications.
Positive Signals
- Supports critical defense needs.
- Ensures aircraft availability.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector is crucial for maintaining military aviation capabilities. Benchmarks for sole-source procurements in this specialized area are often higher due to unique manufacturing requirements.
Small Business Impact
The awardee, Sikorsky Aircraft Corporation, is a large business. There is no indication that small businesses were involved in this specific sole-source contract, potentially missing opportunities for small business participation.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent potential waste. The Department of the Navy's contracting office is responsible for monitoring this award and ensuring adherence to contract terms.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award.
- Lack of competitive benchmarking.
- Potential for cost escalation over platform life.
- Limited small business participation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.4 million to SIKORSKY AIRCRAFT CORPORATION. LRIP 2 AIRCRAFT 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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $58.4 million.
What is the period of performance?
Start: 2018-09-20. End: 2024-04-01.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves factors like unique capabilities, proprietary technology, or urgent needs where only one source can meet requirements. The government should have conducted a price analysis, potentially using historical data, cost breakdowns, or independent government cost estimates, to ensure the price was fair and reasonable despite the lack of competition.
What are the projected long-term sustainment costs for this aircraft platform, and how does this LRIP spares contract influence them?
This LRIP 2 spares contract represents an initial investment in the sustainment of the aircraft platform. If sole-source awards become the norm for spares, the cumulative cost over the platform's lifecycle could be significantly higher than if competition were introduced. This necessitates careful long-term financial planning and potential future efforts to introduce competition.
Are there plans to introduce competition for future production or sustainment phases of this aircraft program?
Future competition is essential to mitigate the risks associated with sole-source awards. The Department of Defense should actively explore options for introducing competition in subsequent LRIP phases, sustainment contracts, or for specific component procurements to drive down costs and enhance value for taxpayer investment.
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 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: $58,395,297
Exercised Options: $58,395,297
Current Obligation: $58,395,297
Actual Outlays: $2,783,309
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $35,982
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
Start Date: 2018-09-20
Current End Date: 2024-04-01
Potential End Date: 2024-04-01 00:00:00
Last Modified: 2025-07-08
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