DoD awards $91.8M for maritime helicopter parts, raising concerns over limited competition

Contract Overview

Contract Amount: $91,773,133 ($91.8M)

Contractor: Maritime Helicopter Support Company LLC

Awarding Agency: Department of Defense

Start Date: 2019-10-08

End Date: 2020-01-31

Contract Duration: 115 days

Daily Burn Rate: $798.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SUPPLY SUPPORT FOR APPROXIMATELY 1,000 WEAPON REPLACEABLE ASSEMBLIES AND SHOP REPLACEABLE ASSEMBLIES

Place of Performance

Location: OWEGO, TIOGA County, NEW YORK, 13827

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $91.8 million to MARITIME HELICOPTER SUPPORT COMPANY LLC for work described as: SUPPLY SUPPORT FOR APPROXIMATELY 1,000 WEAPON REPLACEABLE ASSEMBLIES AND SHOP REPLACEABLE ASSEMBLIES Key points: 1. Significant contract value ($91.8M) for essential weapon and shop replaceable assemblies. 2. Sole-source award to Maritime Helicopter Support Company LLC suggests limited competition. 3. Short contract duration (115 days) may indicate urgent need or limited scope. 4. Focus on aircraft parts manufacturing highlights a critical defense sector.

Value Assessment

Rating: questionable

The contract value of $91.8M for a 115-day period appears high. Benchmarking against similar contracts for aircraft parts is difficult without more specific data on the assemblies covered. The lack of competition further complicates a fair value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating no competition was sought. This method limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The absence of competition on a nearly $92 million contract raises concerns about taxpayer value and the potential for inflated pricing.

Public Impact

Ensures continued operational readiness of maritime helicopters by providing critical parts. Supports jobs within the defense industrial base, specifically in aircraft parts manufacturing. Potential for increased costs to taxpayers due to the sole-source nature of the award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High contract value for short duration
Lack of transparency in pricing

Positive Signals

Ensures availability of critical helicopter parts
Supports a specific defense contractor

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on the manufacturing of aircraft parts. Spending in this area is crucial for national security, but often involves complex supply chains and specialized components.

Small Business Impact

The award was made to Maritime Helicopter Support Company LLC, a company located in New York. There is no indication that small businesses were involved as subcontractors or partners in this specific contract.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure fair pricing and prevent potential waste. A review of the justification for sole-source procurement is recommended.

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 and price discovery.
High value for a short contract duration may indicate overpricing.
Lack of transparency regarding the specific parts and their necessity.
Potential for contractor lock-in due to specialized nature of parts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $91.8 million to MARITIME HELICOPTER SUPPORT COMPANY LLC. SUPPLY SUPPORT FOR APPROXIMATELY 1,000 WEAPON REPLACEABLE ASSEMBLIES AND SHOP REPLACEABLE ASSEMBLIES

Who is the contractor on this award?

The obligated recipient is MARITIME HELICOPTER SUPPORT COMPANY LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $91.8 million.

What is the period of performance?

Start: 2019-10-08. End: 2020-01-31.

What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The justification for a sole-source award typically involves factors such as unique capabilities of the contractor, urgent and compelling needs that preclude competition, or specific government requirements that only one source can meet. Without the specific justification document, it's impossible to determine the exact reasoning, but it's a critical area for oversight to ensure taxpayer funds are used efficiently.

How does the unit cost of these assemblies compare to industry benchmarks, given the sole-source award?

Directly comparing unit costs is challenging due to the sole-source nature and the likely proprietary nature of the specific assemblies. However, the absence of competition inherently removes the downward pressure on pricing that competitive bidding provides. This increases the risk that the government may be paying a premium compared to what could have been achieved through a competitive process.

What is the long-term strategy for ensuring competitive sourcing of these critical helicopter parts?

The long-term strategy should involve a thorough market analysis to identify potential sources for these assemblies. If unique capabilities are required, the government could explore fostering competition through strategic partnerships or by incentivizing new entrants into the market. Regularly reviewing sole-source justifications and actively seeking opportunities for future competition are essential.

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

Address: 1801 STATE ROUTE 17C, OWEGO, NY, 13827

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $91,773,133

Exercised Options: $91,773,133

Current Obligation: $91,773,133

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0038315D008F

IDV Type: IDC

Timeline