DoD's $15.6M Delta Spares Contract Awarded to Sikorsky Aircraft Corporation

Contract Overview

Contract Amount: $15,662,539 ($15.7M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2025-04-07

End Date: 2027-09-30

Contract Duration: 906 days

Daily Burn Rate: $17.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FY24 DELTA SPARES

Place of Performance

Location: STRATFORD, GREATER BRIDGEPORT County, CONNECTICUT, 06615

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $15.7 million to SIKORSKY AIRCRAFT CORPORATION for work described as: FY24 DELTA SPARES Key points: 1. Significant investment in aircraft spares for the Navy. 2. Sole-source award to Sikorsky Aircraft Corporation raises competition concerns. 3. Potential for higher costs due to limited competition. 4. Focus on aircraft manufacturing sector, critical for defense readiness.

Value Assessment

Rating: questionable

The contract value of $15.6M for Delta Spares is difficult to assess without comparable contract data. The sole-source nature of the award suggests potential for pricing that may not be fully optimized through competitive market forces.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This limits the government's ability to discover the lowest possible price through market mechanisms and may result in higher costs for taxpayers.

Taxpayer Impact: The lack of competition could lead to a higher overall cost for these critical aircraft spares, impacting the efficient use of taxpayer funds.

Public Impact

Ensures availability of critical aircraft parts for naval operations. Supports the operational readiness of the U.S. Navy fleet. Potential impact on the broader aerospace supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing.
Potential for cost overruns due to lack of competition.
Long contract duration (906 days) increases exposure to price fluctuations.

Positive Signals

Addresses critical need for aircraft spares.
Awarded to a known manufacturer with established expertise.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, a key component of the defense industrial base. Spending in this area is crucial for maintaining military readiness, but competitive sourcing is vital for cost efficiency.

Small Business Impact

The data does not indicate any specific provisions or considerations for small business participation in this sole-source award. The primary contractor is Sikorsky Aircraft Corporation, a large entity.

Oversight & Accountability

Oversight will be critical to ensure the contractor meets delivery schedules and quality standards, especially given the sole-source nature of the award. The Department of the Navy is responsible for monitoring contract performance.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price gouging
Limited transparency in pricing
Long-term contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.7 million to SIKORSKY AIRCRAFT CORPORATION. FY24 DELTA 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 $15.7 million.

What is the period of performance?

Start: 2025-04-07. End: 2027-09-30.

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 unique capabilities or circumstances where only one source can fulfill the requirement. The Department of Defense should have conducted a price analysis, potentially using historical data or cost breakdowns, to ensure the price is fair and reasonable despite the lack of competition. Further justification documents would detail the specific rationale.

What are the potential risks associated with a sole-source award for aircraft spares, particularly regarding long-term availability and cost?

Sole-source awards carry risks of inflated pricing due to the absence of competitive pressure. Long-term availability could also be impacted if the sole provider faces production issues or decides to discontinue the product line. Without competition, the government has less leverage to negotiate favorable terms or ensure sustained supply.

How does this contract contribute to the overall readiness and operational effectiveness of the Navy's aircraft fleet?

This contract directly supports the operational readiness of the Navy's aircraft fleet by ensuring the availability of critical 'Delta Spares.' These components are essential for maintaining aircraft in operational condition, minimizing downtime, and ensuring that the fleet can effectively execute its missions.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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: $15,662,539

Exercised Options: $15,662,539

Current Obligation: $15,662,539

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $990,328

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