DoD awards $274M to Sikorsky Aircraft for Other Aircraft Parts, a sole-source contract
Contract Overview
Contract Amount: $27,436,858 ($27.4M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2004-11-24
End Date: 2009-11-30
Contract Duration: 1,832 days
Daily Burn Rate: $15.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $27.4 million to SIKORSKY AIRCRAFT CORPORATION for work described as: Key points: 1. Significant contract value of $274.4 million. 2. Sole-source award to Sikorsky Aircraft Corporation. 3. Contract spans over five years (2004-2009). 4. Focus on 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'.
Value Assessment
Rating: questionable
The contract value of $274.4 million is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts for aircraft parts. Benchmarking is crucial.
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 competition in this large contract may result in taxpayers paying a premium for aircraft parts.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. Reliance on a single supplier could impact future pricing and innovation. The long duration of the contract raises questions about ongoing necessity and market changes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- Potential for overpayment
Positive Signals
- Established supplier relationship
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for military readiness, but competitive procurement is vital to ensure cost-effectiveness.
Small Business Impact
The data does not indicate any specific involvement or benefit for small businesses in this sole-source contract. The award went directly to Sikorsky Aircraft Corporation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny regarding the justification for not competing the contract. Oversight should ensure the pricing is fair and reasonable despite the lack of competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs due to no competition.
- Long contract duration may not reflect current market conditions.
- Limited transparency on justification for sole-source.
- No indication of small business participation.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ct, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.4 million to SIKORSKY AIRCRAFT CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is SIKORSKY AIRCRAFT CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $27.4 million.
What is the period of performance?
Start: 2004-11-24. End: 2009-11-30.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's presumed that the Department of Defense had a compelling reason to bypass the competitive bidding process for these aircraft parts.
How can the government ensure fair pricing without competition?
Even in sole-source situations, the government employs various methods to ensure fair pricing. This includes conducting thorough cost and price analyses, reviewing the contractor's cost accounting, and negotiating profit margins. Independent government cost estimates and benchmarking against similar, albeit potentially different, procurements can also provide a basis for negotiation.
What is the long-term risk of relying on sole-source contracts for essential parts?
The long-term risks include potential price escalation over time as competition is absent, reduced incentive for the sole provider to innovate or improve efficiency, and vulnerability if the supplier faces financial difficulties or changes strategic direction. It can also stifle the growth of other potential suppliers in the market.
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: Lockheed Martin Corp (UEI: 834951691)
Address: 6900 MAIN STREET, STRATFORD, CT, 06615
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $27,436,858
Exercised Options: $27,436,858
Current Obligation: $27,436,858
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-11-24
Current End Date: 2009-11-30
Potential End Date: 2009-11-30 12:11:00
Last Modified: 2021-06-14
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