DoD Awards $53.6M for Long-Term Aircraft Parts to Sikorsky Aircraft Corporation
Contract Overview
Contract Amount: $53,589,285 ($53.6M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2023-04-20
End Date: 2028-12-12
Contract Duration: 2,063 days
Daily Burn Rate: $26.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ORDER LTC
Place of Performance
Location: STRATFORD, GREATER BRIDGEPORT County, CONNECTICUT, 06615
Plain-Language Summary
Department of Defense obligated $53.6 million to SIKORSKY AIRCRAFT CORPORATION for work described as: ORDER LTC Key points: 1. Significant contract value of $53.6 million awarded. 2. Sole-source award to Sikorsky Aircraft Corporation indicates limited competition. 3. Long-term contract duration (2028) suggests sustained need for parts. 4. Focus on 'Other Aircraft Parts' points to a specialized defense sector.
Value Assessment
Rating: fair
The contract value of $53.6 million for a duration of over 4 years appears substantial. Without specific per-unit cost data or benchmarks for similar 'Other Aircraft Parts', a precise value assessment is difficult. However, the lack of competition may lead to less favorable pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This significantly limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive procurement.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.
Public Impact
Ensures continued availability of critical aircraft parts for Department of Defense operations. Supports a major defense contractor, potentially impacting jobs and the aerospace supply chain. Long-term nature of the contract provides stability for both the agency and the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing due to sole-source award
- Long-term commitment without demonstrated price optimization
Positive Signals
- Ensures supply of critical parts
- Supports established defense contractor
- Long-term contract provides stability
Sector Analysis
This contract falls within the Defense sector, specifically focusing on 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'. Spending in this area is critical for maintaining military readiness. Benchmarks for such specialized parts are often proprietary or difficult to obtain due to unique specifications.
Small Business Impact
The awardee is Sikorsky Aircraft Corporation, a large defense contractor. There is no indication that small businesses were involved in this specific sole-source award, either as prime contractors or subcontractors.
Oversight & Accountability
The contract is a delivery order under a larger contract, managed by the Defense Logistics Agency. Oversight would focus on ensuring timely delivery, quality of parts, and adherence to the firm fixed price terms. The sole-source nature warrants scrutiny to ensure fair pricing.
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 higher costs due to lack of bidding.
- Long-term commitment may not reflect evolving market prices.
- Broad category of 'Other Aircraft Parts' lacks specificity for detailed cost analysis.
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 $53.6 million to SIKORSKY AIRCRAFT CORPORATION. ORDER LTC
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 $53.6 million.
What is the period of performance?
Start: 2023-04-20. End: 2028-12-12.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable without competition?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. The Defense Logistics Agency would have conducted a price analysis, potentially using historical data, cost breakdowns, or comparison to similar (though not identical) items, to determine the price was fair and reasonable. However, without competition, the potential for savings is inherently limited.
What are the specific types of 'Other Aircraft Parts' being procured, and what is their criticality to ongoing defense operations?
The term 'Other Aircraft Parts' is broad and likely encompasses a range of components beyond standard engine or airframe parts. These could include specialized avionics, structural elements, or unique systems critical for the operational readiness of specific military aircraft platforms. Understanding the exact nature of these parts is key to assessing the risk associated with supply chain disruptions or obsolescence.
Are there plans to re-evaluate competitive sourcing for these parts in the future to potentially reduce costs?
Given the long-term nature of this contract and its sole-source designation, it is crucial to understand if the agency has plans for future competitive procurements. Periodic market research and re-evaluation of sourcing strategies can identify opportunities to introduce competition, drive down costs, and ensure the government is obtaining the best value over the life cycle of the requirement.
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: $53,589,285
Exercised Options: $53,589,285
Current Obligation: $53,589,285
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $2,056,603
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: 2023-04-20
Current End Date: 2028-12-12
Potential End Date: 2028-12-12 00:00:00
Last Modified: 2025-07-15
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