Department of the Navy awards $29M contract for VH SUSTAINMENT SUPPORT, with Sikorsky Aircraft Corporation as the sole provider

Contract Overview

Contract Amount: $29,087,214 ($29.1M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2022-12-01

End Date: 2025-12-31

Contract Duration: 1,126 days

Daily Burn Rate: $25.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: VH SUSTAINMENT SUPPORT FFP

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $29.1 million to SIKORSKY AIRCRAFT CORPORATION for work described as: VH SUSTAINMENT SUPPORT FFP Key points: 1. The contract's fixed-price nature aims to control costs, but the lack of competition raises concerns about optimal value. 2. Sole-source award limits price discovery and potentially inflates costs compared to a competitive bidding process. 3. The duration of over three years suggests a long-term need for these critical aircraft sustainment services. 4. Performance context is limited due to the lack of publicly available details on specific deliverables and metrics. 5. This contract falls within the broader Defense sector, specifically supporting naval aviation readiness. 6. The absence of small business set-asides or subcontracting requirements is noted.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source contract is challenging without comparable competitive bids. The fixed-price structure provides some cost certainty, but the lack of competition means the government may not be achieving the best possible price. Without transparency into the pricing breakdown or comparison to similar sustainment contracts for other aircraft types, it's difficult to definitively assess value for money. The $29 million award over approximately three years suggests a significant investment in maintaining these aircraft.

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 solicited. This approach is typically used when a unique capability or proprietary technology is required, or when there is an urgent need that cannot be met through competition. The lack of competition limits the government's ability to leverage market forces to drive down prices and ensure the most cost-effective solution.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. The government's negotiating position is weakened when only one supplier can fulfill the requirement.

Public Impact

Naval aviators and aircrews benefit from the continued operational readiness of VH aircraft. The contract ensures the availability of critical maintenance and support services for these specialized helicopters. The geographic impact is primarily centered around naval air stations where these aircraft are operated and maintained. This contract supports specialized jobs within the aerospace and defense industry, particularly in aircraft maintenance and engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits transparency in pricing and value assessment.
Dependence on a single contractor for critical sustainment creates potential supply chain risks.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Sikorsky Aircraft Corporation is a known entity with established expertise in this aircraft type.
Contract ensures continued operational readiness of essential naval assets.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aircraft manufacturing and sustainment. The market for specialized helicopter sustainment is often concentrated, with original equipment manufacturers like Sikorsky holding significant sway due to proprietary knowledge and parts. Comparable spending benchmarks would involve analyzing sustainment contracts for other military aircraft, though direct comparisons are difficult due to unique platform requirements and service life.

Small Business Impact

There is no indication of small business set-asides or subcontracting requirements in the provided data. This suggests that the primary contract is not structured to directly benefit small businesses, and opportunities for subcontracting to small businesses may be limited or at the discretion of the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, including performance standards and delivery schedules. Transparency is limited by the sole-source nature and the lack of publicly detailed performance metrics. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Aviation Maintenance Programs
Aircraft Component Sustainment Contracts
Defense Logistics Agency Support Contracts
Military Helicopter Fleet Management

Risk Flags

Sole-source award
Lack of competition
Limited transparency on performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.1 million to SIKORSKY AIRCRAFT CORPORATION. VH SUSTAINMENT SUPPORT FFP

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 $29.1 million.

What is the period of performance?

Start: 2022-12-01. End: 2025-12-31.

What is the specific type of VH aircraft this contract supports, and what are its primary missions?

The provided data does not specify the exact model of the 'VH' aircraft. However, 'VH' designations in military aviation often refer to utility or transport helicopters. Given the contractor is Sikorsky Aircraft Corporation, it is highly probable this contract pertains to the sustainment of Sikorsky-built helicopters such as the UH-60 Black Hawk variants (though typically designated 'UH') or potentially older models. These aircraft typically perform missions including troop transport, medical evacuation, search and rescue, and special operations support, depending on the specific variant and configuration.

How does the $29 million award compare to historical spending on VH aircraft sustainment by the Department of the Navy?

Without specific historical spending data for 'VH' aircraft sustainment by the Department of the Navy, a direct comparison is not possible. However, $29 million over approximately three years (1126 days) equates to roughly $9.67 million per year. This annual figure would need to be benchmarked against the total fleet size, operational tempo, and the complexity of the sustainment services required for the specific VH model. For context, sustainment costs for major military aircraft can range from millions to tens of millions annually per aircraft, depending on factors like age, usage, and required maintenance intensity.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for aircraft sustainment contracts, KPIs would focus on metrics such as aircraft availability rates, mean time between failures (MTBF), turnaround time for repairs, quality of maintenance performed, and adherence to delivery schedules for parts and services. These would be outlined in the contract's statement of work and performance requirements documents, which are not publicly available in this data snippet.

What is Sikorsky Aircraft Corporation's track record with the Department of the Navy for similar sustainment contracts?

Sikorsky Aircraft Corporation, a subsidiary of Lockheed Martin, has a long-standing and extensive track record of providing aircraft and sustainment services to the Department of the Navy and other branches of the U.S. military. They are the original equipment manufacturer for many helicopter platforms used by the Navy. Their history includes numerous contracts for the production, modification, and sustainment of various helicopter types, indicating a deep familiarity with naval aviation requirements and operational environments. This specific contract likely leverages that established relationship and expertise.

Given the sole-source nature, what steps has the Navy taken to ensure fair and reasonable pricing?

When awarding a sole-source contract, the Department of the Navy is required by federal acquisition regulations to perform a "fair and reasonableness" price determination. This typically involves detailed cost analysis of the contractor's proposed costs (labor, materials, overhead, profit), comparison with historical pricing for similar services or components, and potentially negotiation with the contractor. While the specific methods used for this contract are not detailed, the contracting officer must justify that the negotiated price is fair and reasonable, often relying on data from previous contracts or independent cost estimates.

What are the potential risks associated with relying solely on Sikorsky Aircraft Corporation for VH aircraft sustainment?

The primary risk associated with this sole-source contract is the potential for increased costs over time due to the lack of competitive pressure. Another significant risk is vendor lock-in, where the government becomes heavily dependent on Sikorsky for parts, technical data, and expertise, making it difficult and costly to switch providers or bring sustainment in-house. There's also a risk related to supply chain disruptions if Sikorsky faces its own manufacturing or logistical challenges. Finally, without competition, there's less incentive for the contractor to innovate or aggressively seek efficiencies.

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: N0001922R0040

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

Financial Breakdown

Contract Ceiling: $29,087,214

Exercised Options: $29,087,214

Current Obligation: $29,087,214

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,209,509

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001923D0011

IDV Type: IDC

Timeline