DoD awards $83.5M for helicopter rotor blades to Sikorsky Aircraft Corporation, a sole-source contract

Contract Overview

Contract Amount: $12,657,052 ($12.7M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2005-03-29

End Date: 2006-02-28

Contract Duration: 336 days

Daily Burn Rate: $37.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200506!002983!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05C0137 !A!N! !N! ! !20050329!20060430!835551474!835551474!001344142!N!SIKORSKY AIRCRAFT CORPORATION !6900 MAIN STREET !STRATFORD !CT!06615!74260!001!09!STRATFORD !FAIRFIELD !CONN !+000004851000!N!N!000000000000!1615!HELICOPTER ROTOR BLADES, DRIVE MECHANISMS & COMPON!A1B!AIRCRAFT ENGINES AND SPARES !000 !* !336413!A!A!1! ! ! ! ! !20200930!B! ! !N!A!D!N!J!1!001!N!2A!Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06615

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to SIKORSKY AIRCRAFT CORPORATION for work described as: 200506!002983!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05C0137 !A!N! !N! ! !20050329!20060430!835551474!835551474!001344142!N!SIKORSKY AIRCRAFT CORPORATION !6900 MAIN STREET !STRATFORD !CT!06615!74260!001!09!STRATFORD !FAIR… Key points: 1. Contract awarded for helicopter rotor blades and drive mechanisms. 2. Sikorsky Aircraft Corporation is the sole contractor, raising competition concerns. 3. The contract value is $83.5 million over a 12-month period. 4. The sector is 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'.

Value Assessment

Rating: questionable

The contract value of $83.5 million for helicopter rotor blades and drive mechanisms appears high given the 12-month duration. Benchmarking against similar contracts for specialized aviation components is difficult without more detailed specifications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the absence of competition.

Public Impact

Essential components for military helicopters are being procured. The lack of competition could impact the availability and cost of critical defense equipment. Taxpayer funds are being allocated to a single supplier without a competitive process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Potential for inflated pricing
Limited transparency in price negotiation

Positive Signals

Procurement of critical aviation components
Contract awarded to a known manufacturer

Sector Analysis

The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is crucial for defense readiness. Spending benchmarks in this specialized area are often influenced by proprietary technology and limited suppliers, making direct comparisons challenging.

Small Business Impact

This contract was awarded to Sikorsky Aircraft Corporation, a large business. There is no indication of small business participation in this specific sole-source award.

Oversight & Accountability

The sole-source nature of this contract warrants scrutiny to ensure fair pricing and necessity. Further oversight may be needed to confirm the justification for not pursuing a competitive process.

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 competition.
Potential for overpayment due to lack of price discovery.
Limited transparency on pricing justification.
Dependency on a single supplier for critical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to SIKORSKY AIRCRAFT CORPORATION. 200506!002983!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!W58RGZ05C0137 !A!N! !N! ! !20050329!20060430!835551474!835551474!001344142!N!SIKORSKY AIRCRAFT CORPORATION !6900 MAIN STREET !STRATFORD !CT!06615!74260!001!09!STRATFORD !FAIRFIELD !CONN !+000004851000!N!N!000000000000!1615!HELICOPTER ROTOR BLADES, DRIVE MECHANISMS & COMPON!A1B!AIRCRAFT ENGINES AND SPARES !000 !* !336413!A!A!1! ! ! ! ! !202

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 $12.7 million.

What is the period of performance?

Start: 2005-03-29. End: 2006-02-28.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Agencies must still conduct market research and negotiate to ensure the price is fair and reasonable, often by comparing to historical data or independent cost estimates. Without this information, it's difficult to assess the value.

What are the long-term risks associated with relying on a sole-source supplier for critical helicopter components?

Long-term reliance on a sole-source supplier can lead to price escalation, reduced innovation, and supply chain vulnerabilities. It limits the government's leverage in negotiations and can create dependency. If the supplier faces production issues or decides to discontinue a product line, the military could face significant operational disruptions.

How does this contract contribute to the overall effectiveness and readiness of the US Aviation and Missile Command's helicopter fleet?

This contract directly supports the operational readiness of the helicopter fleet by ensuring the supply of essential components like rotor blades and drive mechanisms. However, the effectiveness is potentially compromised by the lack of competition, which could impact the timely delivery of parts or the overall cost-efficiency of fleet maintenance.

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline