DoD's $42M Mechanical Transmission Contract with Sikorsky Aircraft Corporation Lacks Competition

Contract Overview

Contract Amount: $42,116,696 ($42.1M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2018-08-16

End Date: 2022-04-08

Contract Duration: 1,331 days

Daily Burn Rate: $31.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TRANSMISSION, MECHANICAL

Place of Performance

Location: NEW CUMBERLAND, CUMBERLAND County, PENNSYLVANIA, 17070

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $42.1 million to SIKORSKY AIRCRAFT CORPORATION for work described as: TRANSMISSION, MECHANICAL Key points: 1. Significant spending on mechanical transmissions for aircraft parts. 2. Sole-source award to Sikorsky Aircraft Corporation raises competition concerns. 3. Long contract duration (2018-2022) with a firm fixed-price structure. 4. No small business participation noted in this contract.

Value Assessment

Rating: questionable

The contract value of $42.1 million for mechanical transmissions is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for aircraft parts.

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 limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these critical aircraft components.

Public Impact

Essential components for military aircraft maintenance and readiness. Potential for increased costs impacts overall defense budget allocation. Highlights reliance on specific manufacturers for critical parts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business participation

Positive Signals

Firm fixed-price contract structure

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending benchmarks for mechanical transmissions can vary widely based on aircraft type and complexity, but a $42M sole-source award warrants scrutiny.

Small Business Impact

There is no indication of small business participation in this contract. This represents a missed opportunity to support small businesses within the defense supply chain.

Oversight & Accountability

The sole-source nature of this award suggests potential gaps in competitive sourcing strategies. Further oversight is needed to ensure fair pricing and maximize opportunities for diverse suppliers.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Sole-source award
Lack of competition
No small business participation
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.1 million to SIKORSKY AIRCRAFT CORPORATION. TRANSMISSION, MECHANICAL

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 Logistics Agency).

What is the total obligated amount?

The obligated amount is $42.1 million.

What is the period of performance?

Start: 2018-08-16. End: 2022-04-08.

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

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's presumed that Sikorsky Aircraft Corporation was deemed the only viable option by the Defense Logistics Agency for these specific mechanical transmissions.

What is the risk associated with a sole-source contract for critical aircraft parts?

The primary risk of a sole-source contract for critical aircraft parts is the potential for inflated pricing due to the absence of competitive pressure. It also creates a dependency on a single supplier, which can lead to supply chain vulnerabilities and reduced leverage in negotiations for future contracts or repairs.

How does this contract contribute to the overall effectiveness of military aircraft operations?

Mechanical transmissions are vital components for the operational readiness and effectiveness of military aircraft. Ensuring a consistent and reliable supply of these parts, even through a sole-source contract, is crucial for maintaining aircraft in service and supporting mission requirements.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 6900 MAIN ST, STRATFORD, CT, 06614

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,116,696

Exercised Options: $42,116,696

Current Obligation: $42,116,696

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $2,101,561

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPE4AX15D9423

IDV Type: IDC

Timeline