DoD awards $20.3M for swashplate assemblies, a sole-source contract with a decade-long performance period

Contract Overview

Contract Amount: $20,034,920 ($20.0M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2024-09-24

End Date: 2034-08-14

Contract Duration: 3,611 days

Daily Burn Rate: $5.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SWASHPLATE ASSEMBLY

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $20.0 million to SIKORSKY AIRCRAFT CORPORATION for work described as: SWASHPLATE ASSEMBLY Key points: 1. The contract's long duration suggests a need for sustained supply of critical aircraft components. 2. Sole-source procurement raises questions about potential price inflation and lack of competitive pressure. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The award is managed by the Defense Contract Management Agency, indicating significant oversight. 5. The North American Industry Classification System (NAICS) code 336413 points to specialized aircraft parts manufacturing.

Value Assessment

Rating: questionable

Benchmarking the value of this swashplate assembly contract is challenging without specific performance metrics or comparable contract data. However, the $20.3 million award over a potential 10-year period, for a single delivery order, suggests a significant investment in specialized aircraft components. The lack of competition inherently limits the ability to assess if the pricing reflects market value or if a more competitive process could have yielded better terms for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Sikorsky Aircraft Corporation, was solicited. This approach is typically used when a unique capability or proprietary technology is required, or in situations where competition is not feasible. The absence of multiple bidders means there was no direct price comparison or negotiation driven by market forces, potentially leading to a higher price than if the contract had been competed.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from the price reductions typically achieved through competitive bidding processes.

Public Impact

The primary beneficiaries are likely military aviation units requiring operational swashplate assemblies for their aircraft. The contract ensures the continued availability of critical components for maintaining aircraft readiness. The geographic impact is concentrated in Connecticut, where Sikorsky Aircraft Corporation is located. The contract supports specialized manufacturing jobs within the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Long contract duration (up to 10 years) may not account for future technological advancements or market shifts.
Lack of transparency in the justification for sole-sourcing could obscure potential alternatives.
No explicit small business subcontracting goals mentioned, potentially limiting opportunities for smaller firms.

Positive Signals

Fixed-price contract type transfers performance risk to the contractor.
Award to a known entity (Sikorsky) suggests a reliance on established expertise and supply chains.
The contract ensures a critical component supply for defense readiness.
Managed by DCMA, implying a level of established oversight for this type of procurement.

Sector Analysis

The aerospace manufacturing sector, specifically the production of aircraft parts, is characterized by high technological barriers to entry and significant regulatory oversight. This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' category. The market for such specialized components is often dominated by a few key players due to the complexity and proprietary nature of the designs. Spending in this sector is heavily influenced by defense budgets and the operational tempo of military aviation.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss': false flag suggests it is not a small business prime award. Without specific subcontracting plans detailed in the award data, it is difficult to assess the direct impact on the small business ecosystem. However, sole-source awards to large prime contractors can sometimes limit subcontracting opportunities for small businesses compared to competitively awarded contracts.

Oversight & Accountability

Oversight for this contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The fixed-price contract type places the onus on the contractor to manage costs and deliver according to specifications. Transparency regarding the justification for the sole-source award and ongoing performance monitoring would be key accountability measures. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Aircraft Parts Procurement
Defense Logistics Agency
Sikorsky Aircraft Programs
Aerospace Manufacturing Contracts
Sole-Source Defense Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Long contract duration may not reflect evolving technology.
No explicit small business subcontracting goals identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to SIKORSKY AIRCRAFT CORPORATION. SWASHPLATE 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2024-09-24. End: 2034-08-14.

What is the specific type of aircraft or system for which these swashplate assemblies are intended?

The provided data does not specify the exact aircraft or system for which the swashplate assemblies are intended. Swashplates are critical components in rotorcraft, controlling the pitch of the rotor blades. Given the contractor (Sikorsky) and the awarding agency (Department of Defense), it is highly probable that these assemblies are for military helicopters, such as those in the Black Hawk or Seahawk families, which are manufactured by Sikorsky. Further details would require access to the contract's statement of work or associated documentation.

What is the historical spending pattern for swashplate assemblies from Sikorsky Aircraft Corporation by the Department of Defense?

Analyzing historical spending patterns for swashplate assemblies from Sikorsky Aircraft Corporation requires access to a comprehensive database of past contracts. Without such data, it's impossible to provide a specific trend. However, given Sikorsky's long-standing role as a major helicopter manufacturer for the DoD, it is reasonable to assume that there has been consistent, albeit potentially fluctuating, spending on these critical components over many years. The current $20.3 million award over a decade suggests a sustained need, but whether this represents an increase, decrease, or stable level of spending compared to previous periods cannot be determined from the provided information alone.

What is the justification provided for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT COMPETED' and is 'sole-source'. While the specific justification is not detailed in the abbreviated data, common reasons for sole-source awards in defense contracting include: proprietary technology or data rights held exclusively by the contractor, the existence of only one responsible source capable of meeting the requirement, or urgent and compelling circumstances where competition is not feasible. For a specialized component like a swashplate assembly from a major manufacturer like Sikorsky, it's plausible that proprietary design or unique manufacturing capabilities are the primary drivers for the sole-source determination.

How does the $20.3 million value compare to similar swashplate assembly procurements in the market?

Directly comparing the $20.3 million value of this contract to similar swashplate assembly procurements is difficult without access to specific, comparable contract data. Factors such as the exact specifications, materials, quantity, and the specific helicopter model significantly influence pricing. Furthermore, the sole-source nature of this award means it may not reflect competitive market pricing. To establish a benchmark, one would need to identify contracts for the same or highly similar swashplate assemblies, ideally awarded competitively, and analyze their total value, duration, and unit costs.

What are the key performance indicators (KPIs) or metrics used to evaluate Sikorsky Aircraft Corporation's performance under this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics for this contract. However, typical KPIs for defense contracts involving manufactured components often include: on-time delivery rates, defect rates (quality control), adherence to technical specifications, and responsiveness to urgent requirements. Given the long-term nature and sole-source award, the Defense Contract Management Agency (DCMA) would likely be responsible for monitoring these aspects, ensuring that Sikorsky meets the contractual obligations regarding quality, delivery schedules, and technical compliance throughout the contract's duration.

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: $40,887,592

Exercised Options: $40,887,592

Current Obligation: $20,034,920

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $113,868

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0038320GX901

IDV Type: BOA

Timeline