DoD Awards $34M for Rotary Wing Blade Parts to Sikorsky Aircraft Corporation
Contract Overview
Contract Amount: $34,009,306 ($34.0M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2020-12-18
End Date: 2025-05-02
Contract Duration: 1,596 days
Daily Burn Rate: $21.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NOUN: BLADE, ROTARY WING NSN: 1615-01-546-1148
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $34.0 million to SIKORSKY AIRCRAFT CORPORATION for work described as: NOUN: BLADE, ROTARY WING NSN: 1615-01-546-1148 Key points: 1. Significant contract value for specialized aircraft components. 2. Sole-source award raises questions about price discovery and competition. 3. Long contract duration (over 3 years) may impact price flexibility. 4. Focus on critical defense logistics highlights sector importance.
Value Assessment
Rating: questionable
The contract value of $34M for rotary wing blade parts appears high given the 'NOT COMPETED' status. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for specialized aviation 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 as there are no competing bids to drive down the price.
Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium for these parts, as competitive pressures that typically ensure lower prices are absent.
Public Impact
Ensures continued availability of critical helicopter components for military operations. Supports a key defense contractor, potentially impacting regional employment. Lack of competition raises concerns about long-term cost-effectiveness for taxpayers. Dependence on a single supplier could pose supply chain risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Ensures critical part availability
- Supports established defense contractor
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a niche but vital part of the defense industrial base. Spending in this area is critical for maintaining military readiness, but often involves specialized, high-cost components.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. The prime contractor, Sikorsky Aircraft Corporation, is a large entity, suggesting limited direct opportunities for small businesses in this specific award.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the pricing is justified and that future requirements are explored for competitive bidding. The Defense Logistics Agency is responsible for procurement, and accountability for sole-source awards is crucial.
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.
- Potential for overpayment without competitive bids.
- Long contract duration may not reflect current market prices.
- Lack of transparency in price justification.
- Dependence on a single supplier for critical components.
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 $34.0 million to SIKORSKY AIRCRAFT CORPORATION. NOUN: BLADE, ROTARY WING NSN: 1615-01-546-1148
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 $34.0 million.
What is the period of performance?
Start: 2020-12-18. End: 2025-05-02.
What is the justification for the sole-source award of this contract?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or the absence of other responsible sources capable of meeting the government's needs. Without specific documentation, it's presumed that Sikorsky Aircraft Corporation possesses unique expertise or rights related to these rotary wing blade parts, necessitating a non-competitive procurement.
What are the potential risks associated with a sole-source contract for critical aircraft parts?
Sole-source contracts carry risks of inflated pricing due to the lack of competitive pressure, potential for complacency from the supplier regarding quality or innovation, and vulnerability in the supply chain if the sole provider faces disruptions. For critical aircraft parts, these risks can impact operational readiness and increase long-term costs for the Department of Defense.
How does the firm fixed price contract type impact value for money in this sole-source scenario?
A firm fixed price (FFP) contract aims to provide price certainty. However, in a sole-source context, FFP shifts all cost risk to the contractor without the benefit of competitive benchmarking. While it caps the government's cost, it doesn't guarantee the price is the lowest achievable, potentially leading to a less favorable value for money outcome compared to a competed FFP contract.
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: $34,009,306
Exercised Options: $34,009,306
Current Obligation: $34,009,306
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $12,577,289
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: 2020-12-18
Current End Date: 2025-05-02
Potential End Date: 2025-05-02 12:05:00
Last Modified: 2021-08-13
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