DoD awards $1.5B to Sikorsky for Naval Aviation parts, facing limited competition
Contract Overview
Contract Amount: $15,083,244 ($15.1M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2009-07-29
End Date: 2013-12-31
Contract Duration: 1,616 days
Daily Burn Rate: $9.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NAVAL AVIATION
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06615
Plain-Language Summary
Department of Defense obligated $15.1 million to SIKORSKY AIRCRAFT CORPORATION for work described as: NAVAL AVIATION Key points: 1. Significant contract value of $1.5 billion for Naval Aviation parts. 2. Sole-source award to Sikorsky Aircraft Corporation indicates limited competition. 3. Contract duration of over 4 years suggests long-term supply needs. 4. Firm Fixed Price contract type aims to control costs.
Value Assessment
Rating: fair
The contract value of $1.5 billion is substantial. Without specific benchmarks for 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' for naval aviation, it's difficult to definitively assess pricing. However, the lack of competition raises concerns about potential overpricing.
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 considered. This significantly limits price discovery and competitive pressure, potentially leading to higher costs for the government.
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 supply of critical parts for naval aviation platforms. Supports a major defense contractor and its workforce. Potential for higher costs due to lack of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Long contract duration could mask inefficiencies.
- Lack of small business participation noted.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Ensures critical supply for naval aviation.
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, specifically supporting naval aviation. Defense spending in this area is substantial, but often involves specialized components where competition can be limited.
Small Business Impact
The data indicates no specific set-aside for small businesses (sb: false). This suggests that opportunities for small businesses to participate in this large contract may be limited, potentially concentrating the award with a large prime contractor.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. Regular performance reviews and cost audits would be crucial for accountability.
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 competition
- Potential for overpricing
- No small business participation noted
- Long contract duration
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ct, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.1 million to SIKORSKY AIRCRAFT CORPORATION. NAVAL AVIATION
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 $15.1 million.
What is the period of performance?
Start: 2009-07-29. End: 2013-12-31.
What is the justification for the sole-source award, and were alternative competitive strategies explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met by other sources. Without further details, it's unclear if alternatives were thoroughly explored. A comprehensive review of the justification is necessary to ensure it aligns with federal procurement regulations and that competition was not unnecessarily excluded.
How does the unit cost of these parts compare to similar components or historical pricing?
Benchmarking the unit cost is challenging without access to specific part details and market data. However, given the sole-source nature, a proactive approach to cost analysis and comparison with industry standards or previous contracts for similar items is essential. This helps identify potential overpricing and ensures fair value for taxpayer dollars.
What measures are in place to ensure the effectiveness and reliability of the supplied aircraft parts?
Effectiveness and reliability are paramount for aviation safety. The government likely relies on stringent quality assurance clauses within the contract, performance metrics, and inspection protocols. Regular testing, supplier audits, and adherence to military specifications are critical to ensure the parts meet the required standards for naval aviation operations.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 6900 MAIN STREET, STRATFORD, CT, 03
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,083,244
Exercised Options: $15,083,244
Current Obligation: $15,083,244
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038306G006F
IDV Type: IDC
Timeline
Start Date: 2009-07-29
Current End Date: 2013-12-31
Potential End Date: 2013-12-31 00:00:00
Last Modified: 2012-05-11
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