DoD awards $173M H-53 Phase II PBL contract to Sikorsky Aircraft Corporation

Contract Overview

Contract Amount: $173,309,595 ($173.3M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2021-12-01

End Date: 2022-09-30

Contract Duration: 303 days

Daily Burn Rate: $572.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 4TH DELIVERY ORDER UNDER H-53 PHASE II PBL

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $173.3 million to SIKORSKY AIRCRAFT CORPORATION for work described as: 4TH DELIVERY ORDER UNDER H-53 PHASE II PBL Key points: 1. This is the fourth delivery order under the H-53 Phase II PBL program. 2. The contract is with Sikorsky Aircraft Corporation, a major defense contractor. 3. The contract is for Aircraft Manufacturing, a critical defense sector. 4. The award was not competed, raising potential concerns about price discovery.

Value Assessment

Rating: fair

The award amount of $173.3 million for this delivery order is substantial. Benchmarking against similar contracts for heavy-lift helicopter manufacturing and sustainment is necessary to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition could lead to suboptimal pricing, impacting taxpayer value.

Public Impact

Ensures continued sustainment and readiness for the H-53 heavy-lift helicopter fleet. Supports critical military operations requiring heavy-lift capabilities. Maintains a key manufacturing capability within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns due to sole-source award

Positive Signals

Supports critical defense asset sustainment
Maintains existing manufacturing capabilities

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically for heavy-lift helicopters. Spending in this area is critical for national defense, but often involves high costs due to specialized technology and limited suppliers.

Small Business Impact

The data indicates this contract was awarded to Sikorsky Aircraft Corporation and does not mention any small business participation. Further analysis would be needed to determine if small businesses were subcontracted.

Oversight & Accountability

As a sole-source award, oversight is crucial to ensure fair pricing and performance. The Department of the Navy's contracting activity requires diligent monitoring of this delivery order.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competition and price discovery.
Potential for higher costs due to lack of competitive pressure.
Dependence on a single contractor for critical aircraft sustainment.
Need for enhanced oversight to ensure fair pricing and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $173.3 million to SIKORSKY AIRCRAFT CORPORATION. 4TH DELIVERY ORDER UNDER H-53 PHASE II PBL

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 $173.3 million.

What is the period of performance?

Start: 2021-12-01. End: 2022-09-30.

What is the historical cost performance of previous delivery orders under this PBL program, and how does this award compare?

Historical cost performance data for prior delivery orders under the H-53 Phase II PBL program is not provided. A comprehensive review of past contract modifications, cost variances, and performance metrics would be necessary to establish a baseline. Comparing this $173.3 million award against those historical figures, adjusted for inflation and scope, is essential for assessing value and identifying any trends in cost escalation or efficiency.

What are the specific risks associated with a sole-source award for aircraft manufacturing, particularly for a critical platform like the H-53?

Sole-source awards in critical sectors like aircraft manufacturing carry inherent risks. These include potential price gouging due to lack of market pressure, reduced incentive for contractor innovation and efficiency, and a heightened dependence on a single supplier. For the H-53, this could translate to higher sustainment costs, longer lead times for parts, and potential vulnerabilities if the sole-source provider faces production issues or financial instability.

How effectively does the current PBL structure ensure long-term affordability and performance for the H-53 fleet, given this sole-source award?

The effectiveness of the Performance-Based Logistics (PBL) structure in ensuring long-term affordability and performance for the H-53 fleet, especially with a sole-source award, is questionable. While PBL aims to incentivize contractor performance, the lack of competition limits the government's leverage in price negotiations. Continuous monitoring of key performance indicators (KPIs) and robust contract management are vital to mitigate risks and ensure the government receives optimal value and sustained readiness for the H-53.

Industry Classification

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

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

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 Corporation

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: $173,309,595

Exercised Options: $173,309,595

Current Obligation: $173,309,595

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0038319DU001

IDV Type: IDC

Timeline