DoD's $35.8M Rotary Assembly Contract Awarded to Sikorsky Aircraft Corporation
Contract Overview
Contract Amount: $35,852,295 ($35.9M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2017-12-17
End Date: 2020-01-13
Contract Duration: 757 days
Daily Burn Rate: $47.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ASSEMBLY, ROTARY
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06615
Plain-Language Summary
Department of Defense obligated $35.9 million to SIKORSKY AIRCRAFT CORPORATION for work described as: ASSEMBLY, ROTARY Key points: 1. Sikorsky Aircraft Corporation secured a significant contract for rotary assemblies. 2. The contract was awarded without competition, raising questions about price discovery. 3. The Department of the Navy is the primary agency involved. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'.
Value Assessment
Rating: questionable
The contract value of $35.8 million for rotary assemblies appears high given the lack of competitive bidding. Without market comparisons or multiple quotes, it's difficult to ascertain if this price represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were considered. This limits price competition and may lead to higher costs for the government.
Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for these rotary assemblies.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense continues to award significant contracts without full and open competition. The long duration of the contract (757 days) suggests a critical need for these parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- High contract value without clear justification
Positive Signals
- Contract awarded to a known entity (Sikorsky Aircraft Corporation)
- Supports critical defense needs
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which is crucial for maintaining military aviation capabilities. Spending in this sector can be substantial, especially for specialized components like rotary assemblies.
Small Business Impact
The contract was awarded to Sikorsky Aircraft Corporation, a large defense contractor, with no indication of small business participation. This suggests a missed opportunity to support small businesses in the aerospace supply chain.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the price paid is reasonable and that future procurements explore competitive options where feasible.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for overpayment due to lack of price discovery.
- No small business participation noted.
- Contract duration is substantial.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.9 million to SIKORSKY AIRCRAFT CORPORATION. ASSEMBLY, ROTARY
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 $35.9 million.
What is the period of performance?
Start: 2017-12-17. End: 2020-01-13.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities or urgent needs. Without further documentation, it's unclear if these criteria were met. Steps to ensure fair pricing might include historical price analysis or independent government cost estimates, but the absence of competition inherently limits robust price discovery.
What are the potential risks associated with awarding a $35.8 million contract without competition?
The primary risk is paying an inflated price due to the lack of competitive pressure. Other risks include potential complacency from the sole-source provider, reduced innovation, and the opportunity cost of not engaging a wider range of suppliers, potentially including smaller, more agile businesses.
How does this contract contribute to the overall effectiveness of the Department of the Navy's rotary wing aircraft operations?
Rotary assemblies are critical components for helicopters. Ensuring a steady supply of these parts, even through a sole-source contract, is vital for maintaining the operational readiness and effectiveness of the Navy's helicopter fleet. The specific impact depends on the criticality and uniqueness of these particular assemblies.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 6900 MAIN ST, STRATFORD, CT, 06614
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,852,295
Exercised Options: $35,852,295
Current Obligation: $35,852,295
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $648,888
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038316D003F
IDV Type: IDC
Timeline
Start Date: 2017-12-17
Current End Date: 2020-01-13
Potential End Date: 2020-01-13 00:00:00
Last Modified: 2019-11-20
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