DoD's $2M contract for aircraft control panels awarded to Sikorsky Aircraft Corporation without competition

Contract Overview

Contract Amount: $1,992,706 ($2.0M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2024-08-28

End Date: 2026-10-14

Contract Duration: 777 days

Daily Burn Rate: $2.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTROL PANEL,AIRCR

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $2.0 million to SIKORSKY AIRCRAFT CORPORATION for work described as: CONTROL PANEL,AIRCR Key points: 1. The contract value of $1.99 million for control panels represents a specific component within broader aircraft maintenance and sustainment. 2. Awarded on a sole-source basis, the lack of competition raises questions about potential price inflation and limited market exploration. 3. The duration of the contract (777 days) suggests a need for ongoing support or a significant quantity of parts. 4. The specific part number '336413' indicates a highly specialized component, potentially contributing to the sole-source justification. 5. While the contractor is Sikorsky Aircraft Corporation, a known entity in the aerospace sector, the absence of competition limits benchmarking. 6. The contract's focus on 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' places it within a niche but critical segment of defense logistics.

Value Assessment

Rating: questionable

Benchmarking the value of this specific control panel contract is challenging due to its sole-source nature and the lack of publicly available cost data for comparable items. Without competitive bids, it's difficult to ascertain if the $1.99 million price reflects fair market value or if there's an opportunity for cost savings through competition. The fixed-price nature of the contract shifts some risk to the contractor, but the lack of transparency in pricing makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Sikorsky Aircraft Corporation, was solicited. This approach is typically justified when a unique product or service is required, or when only one responsible source is available. However, the lack of competition limits the government's ability to explore alternative suppliers or negotiate more favorable pricing, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The absence of competition means taxpayers may not benefit from the cost efficiencies that typically arise from a competitive bidding process. This could result in a higher overall expenditure for these essential aircraft components.

Public Impact

The primary beneficiaries are the U.S. Navy operations requiring these specific control panels for their aircraft fleet. The contract ensures the continued availability of critical aircraft components, supporting the operational readiness of naval aviation assets. The geographic impact is primarily centered around the contractor's facilities in Connecticut, where the parts will likely be manufactured or sourced. The contract supports specialized manufacturing jobs within the aerospace sector, contributing to the skilled workforce in Connecticut.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential cost savings.
Lack of competition may indicate a lack of market availability or a restrictive specification.
Limited transparency in pricing makes it difficult to assess true value for money.

Positive Signals

Award to a known and established manufacturer (Sikorsky Aircraft Corporation) suggests reliability.
Fixed-price contract shifts some performance and cost risk to the contractor.
Contract supports critical components for naval aviation readiness.

Sector Analysis

The aerospace manufacturing sector, particularly the segment focused on aircraft parts and auxiliary equipment, is characterized by high technical barriers to entry and significant R&D investment. This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' category, which is vital for maintaining the operational capabilities of military and civilian aircraft. Spending in this area is often driven by defense procurement needs, where specialized components are required for complex systems. Comparable spending benchmarks are difficult to establish without more specific part details and market analysis, but the overall defense aerospace market is substantial.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large, established corporation like Sikorsky Aircraft Corporation suggests that the primary focus was on securing the required specialized parts from a known supplier, rather than on fostering small business participation through this specific procurement vehicle.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver the specified goods. Transparency is limited due to the sole-source nature of the award, but contract award data is generally available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Parts Manufacturing
Defense Logistics and Sustainment
Naval Aviation Maintenance
Aerospace Component Procurement

Risk Flags

Sole-source award
Lack of competition
Potential for price escalation
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.0 million to SIKORSKY AIRCRAFT CORPORATION. CONTROL PANEL,AIRCR

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 $2.0 million.

What is the period of performance?

Start: 2024-08-28. End: 2026-10-14.

What is the historical spending pattern for this specific control panel (part number 336413) by the Department of the Navy?

Analyzing historical spending for part number 336413 requires access to detailed procurement databases beyond the initial award data. Without this, it's impossible to determine if this $1.99 million contract represents an increase, decrease, or continuation of previous spending levels for this component. Past contracts for the same part, especially if awarded competitively, would provide crucial context for assessing the current value. If previous awards were also sole-source to Sikorsky, it would suggest a long-standing reliance on this supplier for this specific part, potentially indicating unique manufacturing capabilities or proprietary technology.

What specific technical requirements or justifications led to the sole-source award of this contract?

The sole-source justification for this contract likely stems from Sikorsky Aircraft Corporation's unique position as the original equipment manufacturer (OEM) or a highly specialized supplier of control panel part number 336413. Such justifications often cite proprietary designs, unique tooling, or specific technical expertise that only one source possesses. For critical aircraft components, maintaining compatibility and reliability with existing systems is paramount, which can lead to a preference for the OEM. A thorough review of the Justification and Approval (J&A) document associated with this sole-source award would provide the specific technical and programmatic reasons cited by the Department of the Navy.

How does the unit cost of this control panel compare to similar components used in other military aircraft programs?

Directly comparing the unit cost of this specific control panel (part number 336413) to similar components across other military aircraft programs is challenging without knowing the exact specifications, complexity, and materials involved. However, given the sole-source nature and the fact that it's for aircraft parts, the unit cost could be higher than if it were procured competitively. If this part is a highly specialized, low-volume item, its unit cost might be inherently higher than more standardized components. Benchmarking would ideally involve comparing it to similar control panels from other platforms, considering factors like size, functionality, and technological sophistication, which is difficult with limited data.

What is Sikorsky Aircraft Corporation's track record with the Department of the Navy for similar aircraft parts contracts?

Sikorsky Aircraft Corporation, a subsidiary of Lockheed Martin, has a long and established track record of supplying aircraft and components to the U.S. military, including the Department of the Navy. They are known for their helicopter programs (e.g., Black Hawk, Seahawk) and associated parts and support services. Their history with the Navy likely includes numerous contracts for various components, maintenance, and upgrades. While this specific contract is for a control panel, Sikorsky's overall performance on past contracts, including delivery timeliness, quality, and adherence to specifications, would inform the Navy's confidence in awarding this sole-source contract.

What are the potential risks associated with relying on a single supplier for critical aircraft control panels?

Relying on a single supplier, like Sikorsky in this case, for critical aircraft control panels introduces several risks. Foremost is the risk of supply chain disruption; any issue at the sole source (e.g., production problems, financial instability, geopolitical events) could halt the supply of essential parts, impacting aircraft availability. Secondly, the lack of competition can lead to price escalation over time, as the supplier faces no market pressure to reduce costs. There's also a risk of technological stagnation if the sole supplier does not invest in innovation or if alternative, more advanced technologies are not explored. Finally, dependency on a single source can reduce the government's negotiating leverage.

Are there any performance metrics or key performance indicators (KPIs) associated with this contract to ensure successful delivery?

While the provided data does not explicitly list performance metrics or KPIs for this specific contract, firm-fixed-price contracts generally imply that the contractor is responsible for meeting all specified requirements, including quality, quantity, and delivery timelines. The Department of the Navy would typically have internal processes for monitoring contractor performance, which could include inspections, acceptance testing, and delivery schedule tracking. Specific KPIs might be detailed in the contract's statement of work or associated clauses, focusing on aspects like defect rates, on-time delivery, and compliance with technical specifications. Failure to meet these could result in contract remedies.

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

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: $1,992,706

Exercised Options: $1,992,706

Current Obligation: $1,992,706

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0038320GX901

IDV Type: BOA

Timeline