DoD Awards $30.6M Delivery Order for H-53 Phase II Logistics to Sikorsky Aircraft Corporation

Contract Overview

Contract Amount: $30,622,789 ($30.6M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2022-10-01

End Date: 2022-12-31

Contract Duration: 91 days

Daily Burn Rate: $336.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER FOR POP 5 UNDER PERFORMANCE BASED LOGISTICS CONTRACT IN SUPPORT OF H-53 PHASE II

Place of Performance

Location: CEDAR RAPIDS, LINN County, IOWA, 52498

State: Iowa Government Spending

Plain-Language Summary

Department of Defense obligated $30.6 million to SIKORSKY AIRCRAFT CORPORATION for work described as: DELIVERY ORDER FOR POP 5 UNDER PERFORMANCE BASED LOGISTICS CONTRACT IN SUPPORT OF H-53 PHASE II Key points: 1. Significant contract value of $30.6M for performance-based logistics. 2. Sole-source award to Sikorsky Aircraft Corporation, raising competition concerns. 3. Focus on H-53 helicopter support indicates critical defense asset maintenance. 4. Short duration (91 days) suggests a specific, immediate need.

Value Assessment

Rating: fair

The $30.6M award for a 91-day period suggests a high per-diem cost. Benchmarking against similar performance-based logistics contracts for heavy lift aircraft would be 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 to Sikorsky Aircraft Corporation. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for this significant award may result in taxpayers paying a premium for the required logistics support.

Public Impact

Ensures continued operational readiness of critical H-53 heavy-lift helicopters. Supports maintenance and sustainment for a key component of naval aviation. Potential for increased costs due to sole-source nature impacts defense budget allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns
Limited transparency in pricing

Positive Signals

Performance-based logistics approach
Supports critical defense assets

Sector Analysis

This award falls within the Defense sector, specifically aircraft manufacturing and support services. Spending benchmarks for performance-based logistics on similar helicopter platforms are crucial for evaluating cost-effectiveness.

Small Business Impact

The data indicates this award was not made to small businesses, as 'sb' is false. There is no indication of subcontracting opportunities for small businesses within this specific delivery order.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective delivery of logistics services. Accountability for performance against the contract terms is essential.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award lacks competitive pricing pressure.
High cost for a short performance period requires justification.
Potential for cost creep without robust oversight.
Limited visibility into specific performance metrics and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.6 million to SIKORSKY AIRCRAFT CORPORATION. DELIVERY ORDER FOR POP 5 UNDER PERFORMANCE BASED LOGISTICS CONTRACT IN SUPPORT OF H-53 PHASE II

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 $30.6 million.

What is the period of performance?

Start: 2022-10-01. End: 2022-12-31.

What is the justification for the sole-source award, and what steps were taken to ensure the price is fair and reasonable?

The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. The Department of Defense should have conducted a price analysis, comparing the proposed costs to historical data, commercial prices, or other available benchmarks to ensure the $30.6M is fair and reasonable for the 91-day period of performance.

How does the performance-based logistics (PBL) structure mitigate risks associated with maintaining aging H-53 helicopter fleets?

A PBL contract incentivizes the contractor to achieve specific performance outcomes (e.g., aircraft availability, mission capable rates) rather than just providing parts or labor. This shifts risk to Sikorsky, encouraging proactive maintenance and potentially reducing long-term sustainment costs and improving readiness for the H-53 fleet.

What is the expected impact of this $30.6M delivery order on the overall sustainment costs and operational readiness of the H-53 program?

This $30.6M delivery order represents a significant investment for a short period, likely addressing immediate sustainment needs. Its impact on overall program costs depends on its relation to the total contract value and whether it effectively maintains or improves operational readiness, preventing costly mission failures or extended downtime.

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

Solicitation ID: N0038317R002C

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: $30,622,789

Exercised Options: $30,622,789

Current Obligation: $30,622,789

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $950,654

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