DoD Awards $52.2M for Main Rotor Blades, Sole-Sourced to Sikorsky Aircraft Corporation
Contract Overview
Contract Amount: $52,214,040 ($52.2M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2022-09-06
End Date: 2025-04-10
Contract Duration: 947 days
Daily Burn Rate: $55.1K/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 $52.2 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 questions about price discovery and competition. 3. Long contract duration (947 days) may indicate complex supply chain or production needs. 4. Focus on 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $52.2M for main rotor blades is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar components from other manufacturers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The 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 as there is no market pressure to reduce prices.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these essential aircraft parts.
Public Impact
Ensures continued availability of critical helicopter components for Department of Defense operations. Potential for increased costs due to sole-source procurement impacts overall defense budget allocation. Supports a key defense contractor, Sikorsky Aircraft Corporation, and its manufacturing operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Ensures supply of critical parts
- Long-term contract provides stability
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector is crucial for maintaining military aviation readiness. Benchmarks for similar sole-source contracts are difficult to establish without competitive data.
Small Business Impact
The data does not indicate any specific provisions or benefits for small businesses in this sole-source contract. The award is directly to a large prime contractor, Sikorsky Aircraft Corporation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value. Documentation justifying the sole-source justification should be reviewed for compliance.
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
- Limited transparency in price justification
- Long contract duration may mask inefficiencies
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 $52.2 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 $52.2 million.
What is the period of performance?
Start: 2022-09-06. End: 2025-04-10.
What is the justification for the sole-source award of this significant contract for main rotor blades?
The justification for a sole-source award typically involves factors such as unique technical capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without access to the specific justification documentation, it's impossible to determine the precise reasons Sikorsky Aircraft Corporation was the only viable option for these main rotor blades.
How does the $52.2M contract value compare to industry benchmarks for similar main rotor blade procurements, especially considering it's a sole-source award?
Direct comparison to industry benchmarks is challenging for sole-source contracts due to the absence of competitive pricing. While $52.2M is a substantial sum, its 'fairness' can only be assessed against historical data for similar sole-source awards or through detailed cost analysis by the procuring agency. The lack of competition inherently removes market-driven price validation.
What is the potential impact on long-term helicopter maintenance and operational readiness given this sole-source procurement strategy?
A sole-source strategy for critical components like main rotor blades can ensure a consistent and reliable supply chain, which is vital for operational readiness. However, over-reliance on a single source without competitive pressure might lead to escalating costs in the future and potentially limit the government's flexibility if alternative suppliers or technologies emerge.
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: $52,214,040
Exercised Options: $52,214,040
Current Obligation: $52,214,040
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $20,490,096
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: 2022-09-06
Current End Date: 2025-04-10
Potential End Date: 2025-04-10 12:04:00
Last Modified: 2023-06-09
More Contracts from Sikorsky Aircraft Corporation
- Multi Service, 5 YR, Multi-Yr Contract for H-60 Helicopters. FY2012 FY2016 Production Contract for Army/Navy/Fms Uh/Hh/Mh-60 Helicopters to Include Procurement of UP to 916 Each Aircraft and Related Support, Services, Systems/Project Management, Publications, and Technical Data. FMS Countries Include Saudi Arabian National Guard (sang), Taiwan, Thailand and Royal Australian Navy (RAN) — $11.6B (Department of Defense)
- Procurement of 54 Each Army UH-60M Black Hawk Helicopters; 18 Each Navy MH-60S SEA Hawk Helicopters; 25 Each Navy NH-60R SEA Hawk Helicopters; 9 Each UH-60M Black Hawk Helicopter for Bahrain Defense Force; Tooling; Program Systems Management; Technical Publications — $10.0B (Department of Defense)
- Federal Contract — $6.1B (Department of Defense)
- Acat 1D - CRH — $6.0B (Department of Defense)
- W58rgz-17-C-0009 MY IX Black Hawk Production Contract Award — $5.6B (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)