DoD Awards $64.3M for Blackhawk Helicopter Parts, Sole-Source to Sikorsky Aircraft Corporation

Contract Overview

Contract Amount: $64,326,482 ($64.3M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2020-02-11

End Date: 2027-04-08

Contract Duration: 2,613 days

Daily Burn Rate: $24.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FOR THE PROCUREMENT OF 200 TRANSMISSION, MECHAN IN SUPPORT OF BLACKHAWK.

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $64.3 million to SIKORSKY AIRCRAFT CORPORATION for work described as: FOR THE PROCUREMENT OF 200 TRANSMISSION, MECHAN IN SUPPORT OF BLACKHAWK. Key points: 1. Significant contract value for critical helicopter components. 2. Sole-source award raises questions about price competition. 3. Long contract duration (2027) suggests ongoing need. 4. Procurement falls under 'Other Aircraft Parts' manufacturing sector.

Value Assessment

Rating: questionable

The contract's firm fixed price structure is standard, but the lack of competition makes it difficult to assess if the $64.3M price is optimal. Benchmarking against similar sole-source contracts for Blackhawk parts would be necessary for a true value assessment.

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 limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in higher costs for taxpayers, as there was no market pressure to drive down prices.

Public Impact

Ensures continued operational readiness for Blackhawk helicopters, a critical military asset. Supports the supply chain for essential aircraft parts. Potential for increased costs due to sole-source nature impacts defense budget allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of competition
  • Long contract duration

Positive Signals

  • Supports critical defense asset
  • Firm fixed price contract

Sector Analysis

This procurement falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military aviation readiness. Benchmarks for similar sole-source contracts would be needed for a precise comparison.

Small Business Impact

The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure fair pricing and justification for the lack of competition. Contract performance monitoring will be key.

Related Government Programs

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

Risk Flags

  • Sole-source award lacks competition
  • Potential for inflated pricing
  • Dependency on a single supplier
  • Long-term contract duration increases risk exposure

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 $64.3 million to SIKORSKY AIRCRAFT CORPORATION. FOR THE PROCUREMENT OF 200 TRANSMISSION, MECHAN IN SUPPORT OF BLACKHAWK.

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 $64.3 million.

What is the period of performance?

Start: 2020-02-11. End: 2027-04-08.

What is the justification for the sole-source award, and has it been reviewed for necessity?

The justification for this sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. Oversight bodies should review the agency's justification to ensure it is valid and that all efforts were made to explore competitive options, even if ultimately unsuccessful.

How does the unit cost of these transmission parts compare to industry benchmarks for similar Blackhawk components?

Without specific unit cost data and comparable industry benchmarks, it's impossible to definitively assess the cost-effectiveness. However, the sole-source nature raises a red flag, suggesting prices might be higher than if the contract were competed. A detailed cost analysis comparing this contract to historical sole-source awards or publicly available pricing for similar parts is recommended.

What is the potential impact on Blackhawk operational readiness if Sikorsky Aircraft Corporation faces production or delivery issues?

Given this is a sole-source award for critical transmission parts, any production or delivery issues from Sikorsky Aircraft Corporation could significantly impact Blackhawk operational readiness. The long contract duration (ending April 2027) amplifies this risk. Contingency plans and robust communication channels with the contractor are essential to mitigate potential disruptions.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingOther 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: $64,326,482

Exercised Options: $64,326,482

Current Obligation: $64,326,482

Subaward Activity

Number of Subawards: 62

Total Subaward Amount: $23,302,946

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPE4AX15D9423

IDV Type: IDC

Timeline

Start Date: 2020-02-11

Current End Date: 2027-04-08

Potential End Date: 2027-04-08 12:04:00

Last Modified: 2025-07-29

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