DoD awards $148M contract to Sikorsky for aircraft parts, raising competition concerns
Contract Overview
Contract Amount: $14,805,420 ($14.8M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2024-09-13
End Date: 2027-06-09
Contract Duration: 999 days
Daily Burn Rate: $14.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ACCUMULATOR
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $14.8 million to SIKORSKY AIRCRAFT CORPORATION for work described as: ACCUMULATOR Key points: 1. Significant contract value of $148M for aircraft parts. 2. Sole-source award to Sikorsky Aircraft Corporation limits competitive pricing. 3. Potential risk due to lack of competition and long duration. 4. Spending falls within the Defense sector, specifically aircraft manufacturing.
Value Assessment
Rating: questionable
The contract's value of $148M is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar aircraft parts contracts.
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 lack of competition likely hindered price discovery and may have resulted in a higher cost to the government.
Taxpayer Impact: The absence of competition on this $148M contract means taxpayers may not have received the best possible price for these aircraft parts.
Public Impact
Taxpayers may be overpaying for critical aircraft components due to the sole-source nature of the award. The long contract duration (999 days) could lock in potentially inflated prices for an extended period. Dependence on a single supplier for essential parts could pose a supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- Potential for overpayment
Positive Signals
- Essential parts for Department of Defense
- Contract awarded to established manufacturer
Sector Analysis
This contract falls under the Defense sector, specifically for aircraft parts and auxiliary equipment manufacturing. Spending in this area is critical for military readiness, but competitive procurement is essential to ensure cost-effectiveness.
Small Business Impact
The data indicates this contract was awarded to Sikorsky Aircraft Corporation, a large, established entity. There is no indication of small business participation in this specific award, suggesting missed opportunities for small business engagement.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the pricing is justified and that future procurements of similar items are competed to the maximum extent practicable.
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 inflated pricing due to lack of competition.
- Long contract duration may lock in unfavorable prices.
- Lack of transparency regarding justification for sole-source award.
- Missed opportunity for small business participation.
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 $14.8 million to SIKORSKY AIRCRAFT CORPORATION. ACCUMULATOR
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 $14.8 million.
What is the period of performance?
Start: 2024-09-13. End: 2027-06-09.
What specific aircraft parts are being procured under this contract, and are there alternative suppliers available in the market?
The contract is for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' under NAICS code 336413. While Sikorsky is a major manufacturer, a thorough market analysis should be conducted to identify any other qualified suppliers or potential substitutes for these parts to ensure competitive pricing in the future.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to promote competition for future needs?
The justification for the sole-source award is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. The Department of the Navy should document this justification and outline plans for competitive sourcing in subsequent contract actions.
How will the government ensure fair and reasonable pricing throughout the 999-day contract period, given the lack of initial competition?
With a sole-source award, ensuring fair and reasonable pricing relies heavily on robust cost analysis by the contracting agency. The government should require detailed cost breakdowns from Sikorsky and potentially engage independent cost estimators. Price adjustments should be carefully scrutinized, and market research should be ongoing to identify competitive opportunities.
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: N0038324RF132
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp
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: $14,805,420
Exercised Options: $14,805,420
Current Obligation: $14,805,420
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $670,525
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0038320GX901
IDV Type: BOA
Timeline
Start Date: 2024-09-13
Current End Date: 2027-06-09
Potential End Date: 2027-06-09 00:00:00
Last Modified: 2026-01-06
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