DoD's $67.5M Contract for Aircraft Parts Awarded to Sikorsky Aircraft Corporation
Contract Overview
Contract Amount: $67,533,575 ($67.5M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2024-09-28
End Date: 2026-10-30
Contract Duration: 762 days
Daily Burn Rate: $88.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SPARES
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $67.5 million to SIKORSKY AIRCRAFT CORPORATION for work described as: SPARES Key points: 1. Significant contract value of $67.5 million for aircraft parts. 2. Sole-source award to Sikorsky Aircraft Corporation raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: fair
The contract value of $67.5 million for aircraft parts needs benchmarking against similar sole-source awards. Without competition, it's difficult to ascertain if the pricing is optimal or inflated compared to market rates for comparable components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in less favorable pricing for the government compared to a competitive process.
Taxpayer Impact: The lack of competition could lead to taxpayers potentially overpaying for these aircraft parts.
Public Impact
Ensures continued availability of critical aircraft parts for defense operations. Supports a major defense contractor, potentially impacting jobs and supply chains. Highlights reliance on specific manufacturers for specialized defense components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
- Sole-source award
Positive Signals
- Ensures supply of critical parts
- Supports established defense supplier
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military aviation readiness, but often involves specialized components where competition can be limited.
Small Business Impact
The data does not indicate any specific provisions or benefits for small businesses in this sole-source award to Sikorsky Aircraft Corporation.
Oversight & Accountability
Oversight is needed to ensure the justification for the sole-source award is robust and that pricing is scrutinized to mitigate potential overspending.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for price escalation
- Limited transparency in pricing
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 $67.5 million to SIKORSKY AIRCRAFT CORPORATION. SPARES
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 $67.5 million.
What is the period of performance?
Start: 2024-09-28. End: 2026-10-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the unavailability of alternative sources. For aircraft parts, this could be due to specific design requirements, long-term support agreements, or the need for parts compatible with existing, specialized platforms, necessitating a single, qualified supplier.
What are the potential risks associated with a sole-source contract for aircraft parts?
Sole-source contracts carry risks of inflated pricing due to the absence of competitive pressure, potential for complacency from the supplier regarding quality or delivery, and a lack of innovation. Taxpayers may bear higher costs, and the government's negotiating power is significantly reduced, potentially impacting long-term sustainment costs for the aircraft.
How does this contract contribute to the overall effectiveness of the Department of Defense's aviation assets?
This contract is essential for ensuring the operational readiness and effectiveness of specific DoD aviation assets by providing necessary spare parts. Consistent and timely access to these components prevents aircraft downtime, supports maintenance schedules, and ultimately ensures that critical air capabilities are available when needed for national security missions.
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: $67,533,575
Exercised Options: $67,533,575
Current Obligation: $67,533,575
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $449,544
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: 2024-09-28
Current End Date: 2026-10-30
Potential End Date: 2026-10-30 12:10:00
Last Modified: 2025-07-10
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