DoD's $66.8M Sikorsky Rotor Blade Contract Lacks Competition, Raises Cost Concerns

Contract Overview

Contract Amount: $66,816,871 ($66.8M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2019-01-07

End Date: 2021-04-30

Contract Duration: 844 days

Daily Burn Rate: $79.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NSN: 1615-01-106-1903, PART NUMBER: 70150-09100-043 BLADE,MAIN ROTOR

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $66.8 million to SIKORSKY AIRCRAFT CORPORATION for work described as: NSN: 1615-01-106-1903, PART NUMBER: 70150-09100-043 BLADE,MAIN ROTOR Key points: 1. High contract value of $66.8M for main rotor blades. 2. Sole-source award to Sikorsky Aircraft Corporation limits competitive pricing. 3. Potential for inflated costs due to lack of competition. 4. Spending concentrated in the 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: questionable

The contract's total value is substantial. Without competitive bidding, it's difficult to assess if the price reflects fair market value for the main rotor blades.

Cost Per Unit: $79,167

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Sikorsky Aircraft Corporation. This lack of competition likely hindered price discovery and may have led to a higher overall cost.

Taxpayer Impact: Taxpayers may have overpaid due to the absence of competitive pressure on pricing.

Public Impact

Essential aircraft component procurement without competitive bidding. Potential for increased defense spending without clear value for money. Impacts readiness and operational capability if costs are mismanaged.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High contract value
Lack of competition
Potential for overpayment

Positive Signals

Essential defense procurement
Specific part for aircraft maintenance

Sector Analysis

This spending falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Benchmarks for similar sole-source contracts in this specialized area are crucial for evaluating value.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as both the prime contractor and the nature of the award suggest large-scale, specialized manufacturing.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid was justified and that future procurements explore competitive options.

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
Potential for cost overruns
Limited transparency in pricing
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.8 million to SIKORSKY AIRCRAFT CORPORATION. NSN: 1615-01-106-1903, PART NUMBER: 70150-09100-043 BLADE,MAIN ROTOR

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 $66.8 million.

What is the period of performance?

Start: 2019-01-07. End: 2021-04-30.

What is the justification for the sole-source award of this critical rotor blade contract?

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 further details, it's presumed Sikorsky possesses exclusive rights or capabilities for these specific main rotor blades, necessitating this procurement approach despite the lack of competition.

How does the per-unit cost compare to similar rotor blades procured competitively?

A direct comparison is challenging without access to data on competitively procured, similar main rotor blades. However, the benchmark per-unit cost of $79,167 raises concerns when compared to industry averages for complex aerospace components. Further analysis against comparable contracts is needed to determine if this price is reasonable.

What is the long-term risk associated with relying on a single supplier for critical aircraft components?

The long-term risk includes potential supply chain disruptions, price escalation due to lack of competition, and reduced innovation. Over-reliance on a sole source can also limit the government's leverage in negotiations and potentially impact aircraft availability and maintenance schedules if the supplier faces issues.

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: $66,816,871

Exercised Options: $66,816,871

Current Obligation: $66,816,871

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $4,205,869

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPE4AX15D9423

IDV Type: IDC

Timeline