DoD Spends $40.7M on UH-60 Helicopter Parts, Sole-Sourced from Sikorsky
Contract Overview
Contract Amount: $40,767,266 ($40.8M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2024-06-29
End Date: 2030-01-30
Contract Duration: 2,041 days
Daily Burn Rate: $20.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BLADE, ROTARY WING (UH-60) WEAPON SYSTEM
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $40.8 million to SIKORSKY AIRCRAFT CORPORATION for work described as: BLADE, ROTARY WING (UH-60) WEAPON SYSTEM Key points: 1. Significant contract value for critical helicopter components. 2. Sole-source award raises questions about price competition. 3. Long contract duration (2030) impacts long-term cost visibility. 4. Defense Logistics Agency manages this essential aviation procurement.
Value Assessment
Rating: questionable
The total award value of $40.7M over approximately 6 years needs careful review. Without competition, it's difficult to benchmark against similar contracts for UH-60 parts.
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 potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competitive bidding may result in inflated prices, meaning taxpayers could be paying more than necessary for these essential helicopter parts.
Public Impact
Ensures continued operational readiness for the UH-60 Black Hawk fleet. Supports critical maintenance and repair operations for a key military asset. Potential for increased costs due to lack of competitive pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Long contract duration
Positive Signals
- Ensures availability of critical parts
- Supports operational readiness
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on parts for rotary-wing aircraft. Spending benchmarks for such specialized components are often influenced by proprietary designs and limited supplier bases.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award, as it was a sole-source procurement from a large manufacturer.
Oversight & Accountability
The Defense Logistics Agency is responsible for this procurement. Oversight should focus on ensuring the justification for the sole-source award is robust and that pricing is scrutinized despite the lack of competition.
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 inflated costs due to lack of competition.
- Long contract duration increases long-term cost risk.
- Limited transparency into pricing mechanisms.
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 $40.8 million to SIKORSKY AIRCRAFT CORPORATION. BLADE, ROTARY WING (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 $40.8 million.
What is the period of performance?
Start: 2024-06-29. End: 2030-01-30.
What is the justification for the sole-source award of this contract?
The justification for a sole-source award typically involves factors such as unique technical requirements, proprietary technology, or the unavailability of alternative sources. For the UH-60 parts, Sikorsky, as the original equipment manufacturer, likely holds the necessary design data and manufacturing capabilities, making it the only viable source without extensive requalification processes.
How is the government ensuring fair pricing without competition?
Without direct price competition, the government relies on other mechanisms to ensure fair pricing. This can include detailed cost analysis of the contractor's proposed price, comparison to historical pricing for similar items, negotiation of profit margins, and potentially using should-cost models. However, these methods are generally less effective than competitive bidding in driving down prices.
What is the long-term risk associated with this sole-source contract for UH-60 parts?
The primary long-term risk is sustained higher costs due to the lack of competitive pressure. Additionally, reliance on a single supplier can create vulnerabilities in the supply chain, potentially leading to delays or price increases if the sole source faces production issues or decides to raise prices significantly over the contract's extended duration.
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: $40,767,266
Exercised Options: $40,767,266
Current Obligation: $40,767,266
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $6,986,874
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: 2024-06-29
Current End Date: 2030-01-30
Potential End Date: 2030-01-30 00:00:00
Last Modified: 2024-06-26
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