DoD's $42M Sikorsky Transmission Contract Raises Questions on Competition and Value
Contract Overview
Contract Amount: $42,116,696 ($42.1M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2019-03-05
End Date: 2023-12-08
Contract Duration: 1,739 days
Daily Burn Rate: $24.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NOUN: TRANSMISSION,MECHAN NSN: 1615-01-538-9786 PN: 70351-48100-042
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $42.1 million to SIKORSKY AIRCRAFT CORPORATION for work described as: NOUN: TRANSMISSION,MECHAN NSN: 1615-01-538-9786 PN: 70351-48100-042 Key points: 1. Significant contract value of $42.1M for aircraft parts. 2. Sole-source award to Sikorsky Aircraft Corporation limits competitive pricing. 3. Long contract duration (1739 days) may obscure current market value. 4. Lack of competition raises concerns about potential overpayment and taxpayer impact.
Value Assessment
Rating: questionable
The contract's total value is substantial. Without competitive bidding, it's difficult to assess if the firm fixed price reflects fair market value for the transmission and related services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method bypasses the typical price discovery mechanisms found in competitive procurements, potentially leading to higher costs.
Taxpayer Impact: The absence of competition suggests taxpayers may not have received the best possible price for these critical aircraft components.
Public Impact
Military readiness may depend on the availability of these specific transmissions. Taxpayers bear the cost of sole-source contracts, potentially at inflated prices. Dependence on a single supplier can create supply chain vulnerabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- No small business participation
Positive Signals
- Firm fixed price contract type
- Department of Defense contract
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for defense readiness, but often involves specialized components where competition can be limited.
Small Business Impact
The data indicates no small business participation in this contract. This is common in highly specialized defense manufacturing but represents a missed opportunity for small business engagement.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid was fair and reasonable, 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 limits price competition.
- Long contract duration may not reflect current market prices.
- No indication of small business participation.
- Potential for overpayment due to lack of competition.
- Lack of transparency regarding justification for sole-source.
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 $42.1 million to SIKORSKY AIRCRAFT CORPORATION. NOUN: TRANSMISSION,MECHAN NSN: 1615-01-538-9786 PN: 70351-48100-042
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: 2019-03-05. End: 2023-12-08.
What is the justification for the sole-source award, and were alternatives considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For this contract, the specific reasons are not detailed in the provided data. Further investigation would be needed to understand if alternatives were explored and why they were deemed unsuitable, ensuring the government acted in its best interest.
How does the unit cost compare to similar transmissions procured competitively?
Without competitive data, a direct unit cost comparison is impossible. The absence of competition for this $42.1M contract makes it difficult to benchmark pricing against similar items. A market research analysis or review of historical competitive awards for comparable components would be necessary to assess if the price paid was reasonable and offered good value to the taxpayer.
What is the long-term strategy to ensure competitive sourcing for these critical aircraft parts?
The long-term strategy should focus on market research to identify potential new sources or technologies that could enable competition for future requirements. This might involve breaking down the requirement into smaller components, encouraging new entrants into the market, or exploring alternative parts. Proactive planning is essential to avoid perpetual sole-source awards and ensure cost-effectiveness.
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
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: 15
Total Subaward Amount: $531,628
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX15D9423
IDV Type: IDC
Timeline
Start Date: 2019-03-05
Current End Date: 2023-12-08
Potential End Date: 2023-12-08 12:12:00
Last Modified: 2023-01-08
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