DoD awards $12.7M RDT&E contract for aircraft manufacturing to Sikorsky Aircraft Corporation

Contract Overview

Contract Amount: $12,721,030 ($12.7M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2025-06-01

End Date: 2026-06-01

Contract Duration: 365 days

Daily Burn Rate: $34.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PRESIDIQ LABOR/ENGINEERING RDT&E

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to SIKORSKY AIRCRAFT CORPORATION for work described as: PRESIDIQ LABOR/ENGINEERING RDT&E Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to cost overruns if not managed carefully. 2. The contract was not competed, raising questions about potential price efficiencies and best value. 3. Limited competition may indicate a reliance on specialized capabilities, but also a risk of reduced market pressure. 4. The contract duration of one year suggests a focused research and development effort. 5. The North American Industry Classification System (NAICS) code 336411 points to a specialized segment of aircraft manufacturing. 6. The contract is for Research, Development, Test, and Evaluation (RDT&E) activities.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more detailed cost breakdowns and comparison to similar RDT&E efforts. The cost-plus-fixed-fee structure requires diligent oversight to ensure costs remain reasonable and aligned with the fixed fee. Given the lack of competition, it's difficult to assess if the pricing reflects market rates or if a more competitive process could have yielded better value for the taxpayer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competitive bidding. This typically occurs when a specific contractor possesses unique capabilities or intellectual property essential for the requirement. The lack of competition limits the government's ability to leverage market forces to drive down costs and ensure the most advantageous terms.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding processes.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Department of the Navy, which will receive advanced aircraft manufacturing RDT&E. The services delivered are focused on research, development, testing, and evaluation related to aircraft. The geographic impact is primarily within Connecticut, where Sikorsky Aircraft Corporation is located. The contract supports specialized engineering and technical roles within the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Cost-plus-fixed-fee contracts require robust oversight to prevent cost escalation.
Sole-source awards can limit innovation by not engaging a broader range of potential suppliers.

Positive Signals

Award to a known entity (Sikorsky) suggests a reliance on established expertise.
RDT&E contracts are crucial for maintaining technological superiority.
The contract supports critical defense manufacturing capabilities.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft. The market for defense RDT&E is characterized by high barriers to entry, specialized knowledge, and significant government investment. Comparable spending benchmarks would typically involve other RDT&E contracts for aircraft systems or components awarded by the DoD.

Small Business Impact

This contract does not appear to include a small business set-aside. Given the specialized nature of aircraft RDT&E and the award to a large corporation like Sikorsky, subcontracting opportunities for small businesses may exist but are not explicitly mandated by this award. The primary focus is on the prime contractor's capabilities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the performance metrics outlined in the cost-plus-fixed-fee agreement. Transparency may be limited due to the sole-source nature and the sensitive RDT&E focus.

Related Government Programs

Aircraft Manufacturing
Research and Development
Defense Contracts
Naval Aviation Programs

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to SIKORSKY AIRCRAFT CORPORATION. PRESIDIQ LABOR/ENGINEERING RDT&E

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 $12.7 million.

What is the period of performance?

Start: 2025-06-01. End: 2026-06-01.

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

Sikorsky Aircraft Corporation, a subsidiary of Lockheed Martin, has a long and extensive history of developing and manufacturing aircraft for the U.S. military, including numerous contracts with the Department of the Navy. Their track record includes major programs like the H-60 Black Hawk helicopter variants and the CH-53K King Stallion heavy-lift helicopter. While specific RDT&E contract performance data is often proprietary, Sikorsky's sustained role as a prime contractor for complex aviation systems suggests a deep understanding of the Navy's requirements and a capacity to execute RDT&E efforts. However, like any large defense contractor, past performance reviews and any incurred cost overruns or delays on previous contracts would be critical factors in a comprehensive assessment.

How does the $12.7 million value compare to similar aircraft RDT&E contracts?

The $12.7 million value for this one-year RDT&E contract is relatively modest in the context of major defense acquisition programs. However, RDT&E efforts can vary significantly in scope and cost. Smaller, focused research projects or specific component development could fall within this range. To provide a precise comparison, one would need to analyze the specific technical objectives of this contract and benchmark them against other RDT&E awards for similar technologies or aircraft systems. Without that granular detail, it's difficult to definitively state if $12.7 million represents high or low spending for its intended purpose. It is important to note that this figure represents the initial award value and could potentially increase if contract modifications are issued.

What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract for RDT&E?

The primary risks associated with a sole-source, cost-plus-fixed-fee (CPFF) contract for RDT&E are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher prices than could be achieved through open bidding. This reduces the government's leverage in price negotiation. Secondly, the CPFF structure, while incentivizing the contractor to perform the work, can create an incentive to incur costs, as the fee is a fixed percentage of the allowable costs. This necessitates robust government oversight to scrutinize costs, ensure efficiency, and prevent scope creep or unnecessary expenditures. For RDT&E, where outcomes can be uncertain, managing cost growth while achieving technical objectives is a significant challenge.

What is the expected program effectiveness given the contract details?

The expected program effectiveness hinges on the clarity of the RDT&E objectives and the contractor's ability to meet them within the defined scope and budget. As a sole-source award to a reputable contractor like Sikorsky, there's an expectation of technical competence. However, the effectiveness is directly tied to the government's program management and oversight. The CPFF structure requires diligent monitoring of expenditures and progress to ensure that the funds are being used efficiently to achieve the desired research and development outcomes. If the RDT&E goals are well-defined and achievable, and oversight is strong, the program can be effective in advancing aircraft technology. Conversely, poorly defined objectives or weak oversight could lead to cost overruns and limited technical progress.

How does this contract fit into the broader historical spending patterns for aircraft RDT&E within the Department of Defense?

This $12.7 million contract represents a small fraction of the Department of Defense's overall spending on aircraft Research, Development, Test, and Evaluation (RDT&E). Historically, the DoD allocates billions of dollars annually to RDT&E across all military branches to maintain technological superiority. Spending in this category is driven by evolving threats, the need for advanced capabilities, and the lifecycle of existing platforms. Contracts like this one likely support specific, targeted research initiatives or upgrades rather than large-scale platform development. Analyzing historical spending patterns would reveal trends in investment areas, such as unmanned systems, advanced materials, or specific weapon system enhancements, providing context for the strategic importance of this particular award.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001921R0054

Pricing Type: COST PLUS FIXED FEE (U)

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: $17,502,663

Exercised Options: $17,502,663

Current Obligation: $12,721,030

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001922D0013

IDV Type: IDC

Timeline