DoD Awards $49.2M for Gearbox Assembly, AI to Sikorsky Aircraft Corporation
Contract Overview
Contract Amount: $49,248,265 ($49.2M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-20
End Date: 2026-03-09
Contract Duration: 901 days
Daily Burn Rate: $54.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: GEARBOX ASSEMBLY,AI
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06615
Plain-Language Summary
Department of Defense obligated $49.2 million to SIKORSKY AIRCRAFT CORPORATION for work described as: GEARBOX ASSEMBLY,AI Key points: 1. Significant contract value of $49.2M for specialized aircraft parts. 2. Sole-source award to Sikorsky Aircraft Corporation raises competition concerns. 3. Potential risk associated with limited competition and single supplier reliance. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $49.2M for a gearbox assembly is substantial. Benchmarking against similar specialized aircraft components is difficult without more detailed specifications, but the lack of competition suggests potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method limits price discovery and may result in higher costs for the government compared to a fully competed procurement.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive pressure.
Public Impact
Ensures critical component availability for naval aviation programs. Supports a major defense contractor, potentially impacting regional employment. Raises questions about the long-term strategy for sourcing advanced aircraft parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of transparency in pricing due to no-bid contract.
- Potential for cost overruns without competitive pressure.
Positive Signals
- Secures a critical component for naval operations.
- Supports established defense industrial base.
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military readiness, but often involves specialized, high-cost components where competition can be limited.
Small Business Impact
This contract was awarded directly to Sikorsky Aircraft Corporation and does not indicate any subcontracting opportunities for small businesses. The sole-source nature further limits the potential for small business involvement.
Oversight & Accountability
The sole-source award warrants scrutiny to ensure the government obtained fair and reasonable pricing. Further oversight should confirm the necessity of this approach and explore future opportunities for competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
- Limited transparency
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 $49.2 million to SIKORSKY AIRCRAFT CORPORATION. GEARBOX ASSEMBLY,AI
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 $49.2 million.
What is the period of performance?
Start: 2023-09-20. End: 2026-03-09.
What is the justification for the sole-source award, and were alternative sourcing strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met by other vendors. Without specific details, it's unclear if alternatives like competitive prototyping or phased procurements were explored to foster competition or ensure better pricing.
How does the awarded price compare to industry benchmarks for similar gearbox assemblies, considering the sole-source nature?
Benchmarking a sole-source contract is challenging as true market prices are not established through competition. While Sikorsky is a reputable supplier, the absence of bids means the $49.2M price lacks a direct competitive comparison. A thorough cost analysis by the DoD is essential to validate its reasonableness.
What is the long-term strategy for ensuring competitive sourcing of critical aircraft components like this gearbox assembly?
The long-term strategy should focus on market research to identify potential competitors, fostering new entrants, and potentially investing in dual-source development for critical components. Proactive planning and early engagement with industry can help mitigate sole-source risks and promote future competition.
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
Solicitation ID: N0038323QF036
Offers Received: 1
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $65,664,353
Exercised Options: $65,664,353
Current Obligation: $49,248,265
Subaward Activity
Number of Subawards: 76
Total Subaward Amount: $4,220,934
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0038320GX901
IDV Type: BOA
Timeline
Start Date: 2023-09-20
Current End Date: 2026-03-09
Potential End Date: 2026-03-09 00:00:00
Last Modified: 2024-01-05
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