DoD Awards $130M for Main Rotor Blades, Lacking Competition
Contract Overview
Contract Amount: $129,669,984 ($129.7M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2020-02-27
End Date: 2022-07-30
Contract Duration: 884 days
Daily Burn Rate: $146.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NOUN: BLADE,MAIN ROTOR NSN: 1615-01-106-1903 PN: 70150-09100-043
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $129.7 million to SIKORSKY AIRCRAFT CORPORATION for work described as: NOUN: BLADE,MAIN ROTOR NSN: 1615-01-106-1903 PN: 70150-09100-043 Key points: 1. Significant contract value for critical aircraft components. 2. Sole-source award raises concerns about price discovery. 3. Potential for cost savings through competitive bidding. 4. Sector: Defense - Aircraft Parts Manufacturing.
Value Assessment
Rating: questionable
The contract value of $129.7M for main rotor blades is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts for helicopter components.
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 limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The absence of competition could result in taxpayers paying more than necessary for these essential aircraft parts.
Public Impact
Ensures availability of critical helicopter components for military operations. Potential for increased costs due to lack of competitive pressure. Highlights reliance on specific manufacturers for specialized parts. Impacts readiness if parts are not procured at best value. Long contract duration may mask price inefficiencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- No small business participation noted
Positive Signals
- Ensures supply of critical defense components
- Firm fixed price contract provides cost certainty
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military aviation readiness. Benchmarks are difficult without competitive data.
Small Business Impact
The data indicates no small business participation in this contract. Opportunities for small businesses in the defense supply chain, particularly for specialized parts, may be limited.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure fair pricing and explore future competitive opportunities.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of small business participation.
- Long contract duration.
- No benchmark data available for comparison.
- High contract value.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ct, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $129.7 million to SIKORSKY AIRCRAFT CORPORATION. NOUN: BLADE,MAIN ROTOR NSN: 1615-01-106-1903 PN: 70150-09100-043
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 $129.7 million.
What is the period of performance?
Start: 2020-02-27. End: 2022-07-30.
What is the justification for the sole-source award of this critical helicopter component contract?
The justification for a sole-source award typically involves factors such as unique technical capabilities, proprietary technology, or urgent and compelling needs where only one source can reasonably fulfill the requirement. Without further details, it's presumed the agency determined Sikorsky Aircraft Corporation was the only viable option.
What is the potential cost overrun risk associated with this sole-source contract?
The primary risk is paying a premium due to the lack of competition. Without market research or competitive bids, the government may not be achieving the best possible price. The long duration increases the window for potential inefficiencies to impact the overall cost.
How effective is this contract in ensuring the long-term availability and affordability of main rotor blades?
While the contract ensures availability through a specific awardee, its effectiveness in ensuring affordability is questionable due to the sole-source nature. Long-term affordability would likely be enhanced by fostering competition or negotiating more favorable terms in future sole-source awards.
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: $129,669,984
Exercised Options: $129,669,984
Current Obligation: $129,669,984
Actual Outlays: $43,403,425
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $1,420,366
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: 2020-02-27
Current End Date: 2022-07-30
Potential End Date: 2022-07-30 12:07:00
Last Modified: 2021-07-23
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