DoD Awards $37.8M for Rotary Wing Blade Parts to Sikorsky Aircraft Corporation
Contract Overview
Contract Amount: $37,827,731 ($37.8M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2022-08-19
End Date: 2028-12-12
Contract Duration: 2,307 days
Daily Burn Rate: $16.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NOUN:BLADE, ROTARY WING NSN:1615-01-6918821 PN:70070-10052-041
Place of Performance
Location: STRATFORD, GREATER BRIDGEPORT County, CONNECTICUT, 06615
Plain-Language Summary
Department of Defense obligated $37.8 million to SIKORSKY AIRCRAFT CORPORATION for work described as: NOUN:BLADE, ROTARY WING NSN:1615-01-6918821 PN:70070-10052-041 Key points: 1. This award represents a significant investment in critical aircraft components. 2. Sikorsky Aircraft Corporation is a major player in the aerospace and defense sector. 3. The contract's 'not competed' status raises questions about potential price efficiencies. 4. Spending is concentrated within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector.
Value Assessment
Rating: fair
The contract value of $37.8M for rotary wing blade parts appears substantial. Without specific unit cost data or benchmarks for similar components, it's difficult to definitively assess pricing against industry standards or historical data for comparable parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition scenario. This approach can limit price discovery and potentially lead to higher costs compared to a fully competitive environment.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential aircraft parts.
Public Impact
Ensures continued operational readiness for rotary wing aircraft. Supports a key defense contractor and its supply chain. Potential for increased costs due to non-competitive award. Highlights reliance on specific manufacturers for specialized parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
Positive Signals
- Supports critical defense needs
- Award to established manufacturer
Sector Analysis
This award falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical segment supporting the aerospace industry. Spending benchmarks for specialized aircraft components can vary widely based on technological complexity and market dynamics.
Small Business Impact
The awardee, Sikorsky Aircraft Corporation, is a large business. There is no indication in the provided data that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The Department of Defense, through the Defense Logistics Agency, is responsible for overseeing this contract. The 'not competed' nature warrants scrutiny to ensure fair pricing and value for taxpayer dollars.
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 transparency in price justification
- Potential for cost overruns
- Long-term contract duration without re-competition
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 $37.8 million to SIKORSKY AIRCRAFT CORPORATION. NOUN:BLADE, ROTARY WING NSN:1615-01-6918821 PN:70070-10052-041
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 $37.8 million.
What is the period of performance?
Start: 2022-08-19. End: 2028-12-12.
What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the best possible price was obtained?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or the absence of adequate competition. The agency should have conducted a thorough market research and price analysis to validate the necessity of a sole-source approach and to establish a fair and reasonable price, potentially through negotiation or comparison with similar, albeit not identical, procurements.
How does the per-unit cost of these rotary wing blade parts compare to similar components procured competitively by other military branches or allied nations?
A comprehensive comparison of per-unit costs against competitively procured similar components is essential for assessing value. This would involve identifying comparable parts, analyzing their specifications, and factoring in differences in volume, technology, and supplier. Without such comparative data, it is challenging to determine if the current pricing reflects market competitiveness or potential overpayment.
What is the long-term strategy for ensuring competitive sourcing of these critical aircraft parts to mitigate future cost increases and supply chain risks?
The long-term strategy should focus on fostering competition where feasible. This could involve encouraging new entrants, developing alternative specifications, or breaking down large procurements into smaller, more competitive lots. Proactive market analysis and engagement with potential suppliers are crucial to avoid sole-source dependencies and ensure sustained availability and cost-effectiveness of critical components.
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: $37,827,731
Exercised Options: $37,827,731
Current Obligation: $37,827,731
Actual Outlays: $105,077
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $3,531,391
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: 2022-08-19
Current End Date: 2028-12-12
Potential End Date: 2028-12-12 00:00:00
Last Modified: 2025-07-15
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