Navy Awards $25.3M for Gearbox Components to Sikorsky Aircraft Corporation
Contract Overview
Contract Amount: $25,326,816 ($25.3M)
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: $25.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: GEARBOX,INTERMEDIAT
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $25.3 million to SIKORSKY AIRCRAFT CORPORATION for work described as: GEARBOX,INTERMEDIAT Key points: 1. Significant contract value for specialized aircraft parts. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long performance period (nearly 3 years) requires sustained oversight. 4. Focus on 'Other Aircraft Parts' suggests a niche but critical supply chain element.
Value Assessment
Rating: questionable
The contract value of $25.3M for 'GEARBOX, INTERMEDIAT' is substantial. Without a competitive bidding process, it's difficult to assess if this price represents fair market value compared to similar contracts for intermediate gearbox components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating no other vendors were considered. This limits price discovery and may result in higher costs for taxpayers compared to a fully competed procurement.
Taxpayer Impact: The lack of competition for this sole-source award could lead to inflated prices, directly impacting taxpayer funds allocated for defense procurement.
Public Impact
Ensures continued availability of critical gearbox components for naval aircraft. Supports a major defense contractor, potentially impacting regional employment. Highlights the reliance on specific manufacturers for specialized defense equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Long contract duration increases risk of cost overruns or performance issues.
- Lack of small business participation noted.
Positive Signals
- Secures essential components for naval aviation readiness.
- Award to a known entity (Sikorsky) suggests established relationship and potential expertise.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending benchmarks in this area are highly variable, but large sole-source awards for specialized components often warrant close scrutiny due to potential cost inefficiencies.
Small Business Impact
The data indicates no specific set-aside for small businesses in this sole-source award. This suggests that opportunities for small businesses within this specific procurement are limited, potentially missing out on subcontracting possibilities.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from the Department of the Navy to ensure the contractor is meeting performance requirements and that costs remain justified throughout the contract's duration.
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
- No small business participation
- Long contract duration
- Potential for price escalation
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 $25.3 million to SIKORSKY AIRCRAFT CORPORATION. GEARBOX,INTERMEDIAT
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 $25.3 million.
What is the period of performance?
Start: 2024-09-19. End: 2027-06-15.
What is the justification for the sole-source award, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. The Department of the Navy should have conducted a thorough market research and price analysis to ensure the negotiated price is fair and reasonable, even without competition. Documentation of this justification and analysis is crucial for accountability.
What are the specific risks associated with relying on a single supplier for these critical gearbox components?
The primary risks include supply chain disruption if the sole supplier faces production issues, potential price escalation over time due to lack of competitive pressure, and limited leverage for the government in negotiating terms or demanding innovation. This dependency could impact fleet readiness if the components are essential and cannot be sourced elsewhere.
How does the performance of these gearbox components align with broader naval aviation readiness goals?
The performance of these intermediate gearbox components is directly tied to the operational readiness of naval aircraft. Consistent, high-quality delivery ensures that aircraft can be maintained and deployed as needed. Any degradation in performance or delivery delays could have cascading negative effects on mission capability and overall fleet availability.
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: $51,687,379
Exercised Options: $51,687,379
Current Obligation: $25,326,816
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $320,799
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038320GX901
IDV Type: BOA
Timeline
Start Date: 2024-09-19
Current End Date: 2027-06-15
Potential End Date: 2027-06-15 00:00:00
Last Modified: 2024-09-20
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