DoD Awards $40.1M to Sikorsky for VH Sustainment Support, Facing Limited Competition
Contract Overview
Contract Amount: $40,137,611 ($40.1M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2023-12-12
End Date: 2026-12-31
Contract Duration: 1,115 days
Daily Burn Rate: $36.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: VH SUSTAINMENT SUPPORT FY24 PMA-274
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $40.1 million to SIKORSKY AIRCRAFT CORPORATION for work described as: VH SUSTAINMENT SUPPORT FY24 PMA-274 Key points: 1. Significant contract value of $40.1M for aircraft sustainment. 2. Limited competition raises questions about price discovery. 3. Potential risk associated with sole-source or limited competition awards. 4. Spending falls within the Aircraft Manufacturing sector.
Value Assessment
Rating: fair
The contract is a firm fixed price delivery order. Without a benchmark for similar sustainment contracts or a competitive bidding process, it's difficult to definitively assess if the $40.1M price is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under limited competition. This method may not yield the most competitive pricing as potential bidders are restricted, potentially impacting price discovery and overall value for taxpayer funds.
Taxpayer Impact: Limited competition can lead to higher costs for taxpayers if not managed carefully through robust negotiation and oversight.
Public Impact
Ensures continued operational readiness for VH aircraft. Supports critical defense capabilities for the Department of the Navy. Impacts the aerospace and defense industry, specifically in Connecticut.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of public pricing data
- Long contract duration
Positive Signals
- Supports critical defense assets
- Firm fixed price contract type
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, which is a significant part of the defense industrial base. Spending benchmarks for sustainment contracts can vary widely based on aircraft type, age, and complexity.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The award is a delivery order under a larger contract. Oversight should focus on the justification for limited competition and the negotiation process to ensure fair pricing and effective performance.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition
- Lack of detailed cost breakdown
- Potential for cost overruns if not closely managed
- Dependence on a single contractor for critical support
Tags
aircraft-manufacturing, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.1 million to SIKORSKY AIRCRAFT CORPORATION. VH SUSTAINMENT SUPPORT FY24 PMA-274
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 $40.1 million.
What is the period of performance?
Start: 2023-12-12. End: 2026-12-31.
What is the specific justification for limiting competition on this VH sustainment contract?
The justification for limited competition is crucial for understanding why only a select number of bidders were considered. This could be due to specialized capabilities, existing infrastructure, or urgent operational needs. A thorough review of the contracting officer's justification is necessary to ensure it aligns with federal procurement regulations and promotes best value.
How does the $40.1M cost compare to historical sustainment costs for similar aircraft platforms?
Benchmarking this $40.1M award against historical sustainment costs for comparable aircraft platforms is essential for assessing value. Without this comparison, it's difficult to determine if the price is reasonable or inflated. Analyzing trends in maintenance, parts, and labor costs over time would provide critical context for this specific contract.
What are the key performance indicators (KPIs) and metrics used to measure the effectiveness of Sikorsky's sustainment support?
Effectiveness is measured by the successful execution of the contract's objectives, ensuring the VH aircraft remain operational and mission-ready. Key performance indicators likely include aircraft availability rates, turnaround times for maintenance, quality of repairs, and adherence to delivery schedules. Robust monitoring of these KPIs is vital for accountability.
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: $47,904,182
Exercised Options: $47,904,182
Current Obligation: $40,137,611
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $855,192
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
Start Date: 2023-12-12
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-01-09
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