DoD's $51M Sikorsky Blade Assy Contract Raises Concerns Over Competition and Value
Contract Overview
Contract Amount: $51,157,618 ($51.2M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-18
End Date: 2031-08-30
Contract Duration: 2,903 days
Daily Burn Rate: $17.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BLADE ASSY
Place of Performance
Location: STRATFORD, GREATER BRIDGEPORT County, CONNECTICUT, 06615
Plain-Language Summary
Department of Defense obligated $51.2 million to SIKORSKY AIRCRAFT CORPORATION for work described as: BLADE ASSY Key points: 1. Significant contract value of $51.16 million for blade assemblies. 2. Sole-source award to Sikorsky Aircraft Corporation limits competitive pricing. 3. Long contract duration (2023-2031) may obscure current market value. 4. Lack of competition is a primary risk factor for potential overspending.
Value Assessment
Rating: questionable
The contract's value is substantial, but without competitive bidding, it's difficult to assess if the price is fair. Benchmarking against similar contracts for aircraft parts is challenging due to the specialized nature of blade assemblies and the sole-source award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Sikorsky Aircraft Corporation, was solicited. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition suggests taxpayers may be paying a premium for these blade assemblies, as there was no market pressure to drive down prices.
Public Impact
Taxpayers may be overpaying for critical aircraft components due to a lack of competitive bidding. The long-term nature of the contract could lock the DoD into potentially inflated prices for over eight years. Dependence on a single supplier for essential parts can create supply chain vulnerabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- Limited price transparency
Positive Signals
- Essential component for aircraft maintenance
- Established supplier relationship
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector is critical for defense readiness, but often involves specialized components where competition can be limited, making oversight crucial.
Small Business Impact
The awardee, Sikorsky Aircraft Corporation, is a large business. There is no indication that small businesses were involved in this specific sole-source procurement, missing an opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight from the Defense Logistics Agency and the Department of Defense to ensure the pricing remains reasonable throughout the contract's life and to 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 overpayment due to lack of price discovery.
- Long contract duration may obscure current market value.
- Dependence on a single supplier.
- No indication of small business participation.
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 $51.2 million to SIKORSKY AIRCRAFT CORPORATION. BLADE ASSY
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 $51.2 million.
What is the period of performance?
Start: 2023-09-18. End: 2031-08-30.
What is the justification for the sole-source award, and has the government explored options for future competition?
The justification for the sole-source award is not provided in the data. However, for future procurements, the government should actively seek opportunities to introduce competition, perhaps by breaking down the requirement, soliciting alternative suppliers, or developing new sources to ensure fair pricing and enhance supply chain resilience.
How does the unit cost compare to industry benchmarks for similar aircraft blade assemblies, considering the sole-source nature?
Without competitive bids or publicly available benchmark data for comparable sole-source contracts, it is difficult to definitively assess the unit cost. The lack of competition inherently raises concerns that the price may not reflect market value. Further analysis would require access to proprietary cost data or industry-wide pricing intelligence.
What are the potential risks associated with a sole-source contract for critical aircraft parts over an eight-year period?
The primary risks include potential price inflation over time, reduced incentive for the supplier to innovate or improve efficiency, and supply chain vulnerability if the sole source faces production issues. It also limits the government's ability to leverage market competition to secure better terms or explore alternative technologies.
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: $51,157,618
Exercised Options: $51,157,618
Current Obligation: $51,157,618
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $1,749,766
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: 2023-09-18
Current End Date: 2031-08-30
Potential End Date: 2031-08-30 00:00:00
Last Modified: 2025-07-15
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