DoD Awards $6.57M for VH Sustainment Support to Sikorsky Aircraft Corporation

Contract Overview

Contract Amount: $6,573,274 ($6.6M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2025-12-03

End Date: 2026-11-30

Contract Duration: 362 days

Daily Burn Rate: $18.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: VH SUSTAINMENT SUPPORT FFP

Place of Performance

Location: ARECIBO, ARECIBO County, PUERTO RICO, 00614

Plain-Language Summary

Department of Defense obligated $6.6 million to SIKORSKY AIRCRAFT CORPORATION for work described as: VH SUSTAINMENT SUPPORT FFP Key points: 1. Contract awarded to a single, established manufacturer. 2. Focus on aircraft sustainment suggests ongoing operational needs. 3. Limited competition raises questions about price discovery. 4. Sector is critical for defense readiness and maintenance.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific unit costs or comparison to similar sustainment contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is not available for competition, likely due to the specialized nature of VH aircraft sustainment, which often requires manufacturer-specific expertise. This limits price discovery and potentially increases costs.

Taxpayer Impact: Taxpayer funds are used for specialized sustainment, ensuring operational readiness but potentially at a premium due to lack of competition.

Public Impact

Ensures continued operational readiness of VH aircraft. Supports specialized maintenance and repair services. Potential for higher costs due to limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost Plus Fixed Fee contract type
Lack of specific unit cost data

Positive Signals

Supports critical defense assets
Long-term sustainment plan

Sector Analysis

This contract falls within the Defense sector, specifically aircraft manufacturing and maintenance. Spending benchmarks for sustainment contracts can vary widely based on aircraft type and service level.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The awardee is a large corporation.

Oversight & Accountability

Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure efficient use of funds. The Department of the Navy is responsible for contract administration.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Lack of competitive bidding may lead to inflated prices.
Dependence on a single supplier for critical sustainment.
Limited transparency on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.6 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 $6.6 million.

What is the period of performance?

Start: 2025-12-03. End: 2026-11-30.

What is the historical cost performance of similar VH sustainment contracts awarded under limited competition?

Historical data on similar contracts is essential for a robust value assessment. Without it, it's challenging to determine if the current $6.57M award represents fair value. Analysis should focus on cost trends, efficiency metrics, and any cost-saving measures implemented in past agreements to inform future negotiations and oversight.

What are the specific risks associated with the Cost Plus Fixed Fee contract type for this sustainment effort?

The primary risk with CPFF is the contractor's incentive to increase costs to maximize profit, as their fee is fixed. This necessitates rigorous oversight from the Department of the Navy to scrutinize all incurred costs, ensure efficiency, and prevent scope creep. Without strong controls, costs could exceed initial estimates significantly.

How does this contract contribute to the overall effectiveness and readiness of the VH aircraft fleet?

This contract is vital for maintaining the operational effectiveness and readiness of the VH aircraft fleet by ensuring necessary sustainment support. It addresses potential degradation of critical components and systems, thereby minimizing downtime and maximizing mission capability. The long-term nature of the award suggests a strategic commitment to fleet readiness.

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: 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: $52,306,987

Exercised Options: $52,306,987

Current Obligation: $6,573,274

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