Navy awards $45.3M contract for BLOWDOWN ASSEMBLY to Sikorsky Aircraft Corporation, a sole-source procurement

Contract Overview

Contract Amount: $45,261,756 ($45.3M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2024-09-19

End Date: 2027-06-15

Contract Duration: 999 days

Daily Burn Rate: $45.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BLOWDOWN ASSEMBLY

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $45.3 million to SIKORSKY AIRCRAFT CORPORATION for work described as: BLOWDOWN ASSEMBLY Key points: 1. The contract value of $45.3M appears reasonable given the benchmarked price of $45.3M. 2. This is a sole-source award, limiting competitive pressure on pricing and innovation. 3. The contract duration extends to June 2027, indicating a long-term need. 4. The award is for a specific component, suggesting a specialized requirement. 5. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: good

The awarded amount of $45.3M is very close to the benchmarked price of $45.3M, suggesting fair pricing for this specific BLOWDOWN ASSEMBLY. Without more detailed cost breakdowns or comparisons to similar sole-source procurements for this exact component, a definitive value-for-money assessment is challenging. However, the alignment with the benchmark indicates the government did not overpay based on available data.

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 bypasses the competitive bidding process, which typically drives down prices and encourages innovation. The lack of competition means there is no direct comparison to other potential suppliers or their pricing structures for this specific BLOWDOWN ASSEMBLY.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no market pressure to offer the lowest price. It also limits opportunities for new or smaller businesses to enter the market for this specific component.

Public Impact

The primary beneficiary of this contract is the Department of the Navy, ensuring the continued operation and maintenance of its aircraft fleet. The services delivered involve the supply of critical BLOWDOWN ASSEMBLY components, essential for aircraft functionality. The geographic impact is primarily within Connecticut, where Sikorsky Aircraft Corporation is located, potentially supporting local jobs and the regional economy. Workforce implications may include continued employment for skilled manufacturing and engineering personnel at Sikorsky.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher long-term costs for the Navy.
Sole-source awards can stifle innovation by not encouraging alternative solutions.
Dependence on a single supplier could create supply chain risks.
No explicit small business set-aside raises questions about broader economic inclusion.

Positive Signals

Award to an established manufacturer like Sikorsky suggests reliability and quality.
The contract duration indicates a stable supply chain for a critical component.
The close alignment of award price to benchmark suggests reasonable cost management.
The specific nature of the component implies a focus on specialized, high-assurance parts.

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector (NAICS 336413). This sector is characterized by specialized production for the aerospace industry, often involving complex engineering and high-quality manufacturing standards. The market size for such specialized components is driven by defense spending and commercial aviation needs. This specific award to Sikorsky, a major aerospace manufacturer, aligns with industry trends of established players fulfilling critical, often proprietary, component needs for large defense platforms.

Small Business Impact

This contract does not appear to include a small business set-aside, as indicated by 'sb': false. Given the sole-source nature of the award, it is unlikely that subcontracting opportunities for small businesses were mandated or actively sought through a competitive process. Further review would be needed to determine if Sikorsky has existing subcontracting relationships or plans to engage small businesses for any part of this requirement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. The Defense Contract Management Agency (DCMA) likely provides quality assurance and delivery oversight. Transparency is limited due to the sole-source nature, but contract award data is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Aircraft Procurement
Naval Aviation Sustainment Programs
Aerospace Component Manufacturing
Sole-Source Defense Contracts

Risk Flags

Sole-source award limits competition
Potential for price escalation without competition
Supply chain risk due to single supplier dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.3 million to SIKORSKY AIRCRAFT CORPORATION. BLOWDOWN ASSEMBLY

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 $45.3 million.

What is the period of performance?

Start: 2024-09-19. End: 2027-06-15.

What is the historical spending pattern for BLOWDOWN ASSEMBLY components by the Department of the Navy?

Analyzing historical spending for BLOWDOWN ASSEMBLY components by the Department of the Navy requires access to detailed procurement databases. Without specific historical data for this exact component, it's difficult to establish a precise pattern. However, general trends in defense spending indicate consistent investment in aircraft parts and maintenance to ensure fleet readiness. Sole-source awards for specialized components like this are not uncommon, especially when dealing with proprietary designs or unique manufacturing requirements. The current award of $45.3M should be compared against any previous awards for similar components, considering inflation and any changes in specifications or quantities over time. A significant deviation from historical price points, adjusted for these factors, could signal a need for deeper investigation into the justification for the current sole-source procurement.

What is Sikorsky Aircraft Corporation's track record with sole-source contracts for similar components?

Sikorsky Aircraft Corporation, as a major defense contractor, has a history of receiving both competed and sole-source contracts. Their track record with sole-source awards for specific components often stems from proprietary technology, unique integration requirements with their aircraft platforms (like the Black Hawk or Seahawk helicopters), or long-standing established relationships. Analyzing their past sole-source awards for similar complex assemblies would reveal patterns in pricing, delivery performance, and adherence to contract terms. A review of contract databases might show if Sikorsky has previously supplied this specific BLOWDOWN ASSEMBLY or functionally equivalent parts under sole-source conditions. Consistent performance and reasonable pricing on prior sole-source awards can lend confidence to the current procurement, whereas a history of cost overruns or delivery issues would raise concerns.

How does the $45.3M award compare to market rates for similar aircraft components?

Comparing the $45.3M award for the BLOWDOWN ASSEMBLY to general market rates for 'similar' aircraft components is challenging without precise specifications. The term 'similar' is broad, and the value of aircraft parts varies immensely based on complexity, materials, certification requirements, and intended use. However, the provided benchmark price of $45.3M suggests that the government's internal estimate or prior knowledge aligns precisely with the awarded amount. This close alignment implies that, from the government's perspective, the price is considered fair market value for this specific item. To conduct a more robust comparison, one would need data on other sole-source or competed contracts for identical or highly comparable BLOWDOWN ASSEMBLY units, factoring in quantity, delivery timelines, and any associated support services.

What are the potential risks associated with relying on a single supplier (Sikorsky) for this critical component?

Relying on a single supplier like Sikorsky Aircraft Corporation for the BLOWDOWN ASSEMBLY introduces several potential risks. Firstly, there's a supply chain vulnerability; any disruption at Sikorsky's facility (due to labor issues, natural disasters, or financial instability) could halt the delivery of this critical component, impacting naval operations. Secondly, the lack of competition inherent in a sole-source award can lead to price escalation over time, as the government has limited leverage to negotiate better terms. Thirdly, it may stifle innovation, as Sikorsky might have less incentive to invest in improving the component's design or manufacturing process if they are guaranteed the contract. Finally, there's a risk of vendor lock-in, making it difficult and costly to switch to an alternative supplier even if performance issues arise.

What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The justification for awarding this contract on a sole-source basis typically falls under specific exceptions to the Competition in Contracting Act (CICA). Common reasons include the existence of only one responsible source capable of providing the required item or service, or that only one source can meet the government's minimum needs. For specialized aircraft components like the BLOWDOWN ASSEMBLY, this could be due to proprietary design rights held by Sikorsky, unique manufacturing processes only they possess, or the need for seamless integration with existing Sikorsky-produced aircraft systems where only they can provide the necessary expertise and parts. The government must document and justify these reasons, often requiring approval from higher authorities, to ensure that a sole-source award is truly necessary and that competition is not being improperly avoided.

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: $92,370,936

Exercised Options: $92,370,936

Current Obligation: $45,261,756

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $45,946,143

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0038320GX901

IDV Type: BOA

Timeline