DoD Spends $20M on UH-60 Swashplate Parts from Sikorsky, Lacking Competition
Contract Overview
Contract Amount: $20,091,857 ($20.1M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2024-01-08
End Date: 2030-12-14
Contract Duration: 2,532 days
Daily Burn Rate: $7.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SWASHPLATE,CONTROLL (UH-60) WEAPON SYSTEM
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $20.1 million to SIKORSKY AIRCRAFT CORPORATION for work described as: SWASHPLATE,CONTROLL (UH-60) WEAPON SYSTEM Key points: 1. Significant spending on a critical helicopter component. 2. Sole-source award raises concerns about price discovery. 3. Long contract duration extends potential overpricing risk. 4. Defense sector reliance on established suppliers.
Value Assessment
Rating: questionable
The contract value of $20.1M over 7 years for swashplate components is substantial. Without competitive bidding, it's difficult to assess if this price is fair market value compared to similar contracts or potential alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Sikorsky Aircraft Corporation. This lack of competition limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition on this significant contract likely results in higher costs for the Department of Defense, ultimately impacting taxpayer funds.
Public Impact
Ensures continued operational readiness for the UH-60 fleet. Potential for inflated costs due to lack of competitive pressure. Long-term commitment may lock in pricing for over a decade.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of price competition
Positive Signals
- Ensures availability of critical parts
- Supports ongoing UH-60 operations
Sector Analysis
This contract falls within the Defense sector, specifically for aircraft parts. Spending on specialized components like swashplates for legacy platforms like the UH-60 is common but often lacks robust competition.
Small Business Impact
The awardee, Sikorsky Aircraft Corporation, is a large business. There is no indication that small businesses were involved in this specific contract, nor is there a clear pathway for their participation given the sole-source nature.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government is not overpaying. A review of the justification for not competing the contract is essential.
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.
- Long contract duration increases risk of overpayment.
- Potential for price escalation over time.
- Lack of transparency in pricing justification.
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 $20.1 million to SIKORSKY AIRCRAFT CORPORATION. SWASHPLATE,CONTROLL (UH-60) WEAPON SYSTEM
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 $20.1 million.
What is the period of performance?
Start: 2024-01-08. End: 2030-12-14.
What is the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically centers on unique capabilities, proprietary technology, or the inability of other sources to meet the specific requirements within the necessary timeframe. For critical components like swashplates on established platforms, the original equipment manufacturer often holds unique knowledge and tooling, making competition challenging without significant investment or redesign.
How does the lack of competition impact the potential for cost overruns or inflated pricing over the contract's duration?
Without competitive pressure, the contractor has less incentive to offer the lowest possible price. The government relies on negotiation and cost analysis, but these are less effective than market-driven pricing. Over the contract's 7-year duration, this could lead to millions in overspending compared to a competitively bid scenario, especially if material costs fluctuate.
What measures are in place to ensure the effectiveness and quality of the swashplate components provided under this sole-source contract?
Effectiveness and quality are typically ensured through stringent government inspection and acceptance processes, adherence to technical specifications, and performance metrics outlined in the contract. The Defense Contract Management Agency (DCMA) would likely oversee quality assurance, ensuring parts meet military standards despite the lack of upfront price competition.
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: $20,091,857
Exercised Options: $20,091,857
Current Obligation: $20,091,857
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $494,596
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: 2024-01-08
Current End Date: 2030-12-14
Potential End Date: 2030-12-14 00:00:00
Last Modified: 2025-07-23
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