DoD Awards $67.9M Contract to Sikorsky for H-60 Helicopter Services, Lacking Competition

Contract Overview

Contract Amount: $67,927,732 ($67.9M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2007-12-01

End Date: 2008-05-30

Contract Duration: 181 days

Daily Burn Rate: $375.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROVIDE INTEGRATED SERVICES AND SUPPLIES TO INCLUDE TECHNICAL, ENGINEERING, AND LOGISTICAL SERVICES (TELS) AND 100% MATERIAL TO SUPPORT CORPUS CHRISTI ARMY DEPOT (CCAD) AND US ARMY AVIATION AND MISSILE COMMAND (AMCOM) IN THE OVERHAUL, REPAIR AND RECAPITALIZATION OF THE H-60 WEAPON SYSTEM.

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $67.9 million to SIKORSKY AIRCRAFT CORPORATION for work described as: PROVIDE INTEGRATED SERVICES AND SUPPLIES TO INCLUDE TECHNICAL, ENGINEERING, AND LOGISTICAL SERVICES (TELS) AND 100% MATERIAL TO SUPPORT CORPUS CHRISTI ARMY DEPOT (CCAD) AND US ARMY AVIATION AND MISSILE COMMAND (AMCOM) IN THE OVERHAUL, REPAIR AND RECAPITALIZATION OF THE H-60 WEAPO… Key points: 1. The contract awarded to Sikorsky Aircraft Corporation for H-60 weapon system support is a significant expenditure. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The services provided are critical for Army aviation readiness, supporting CCAD and AMCOM. 4. The firm-fixed-price contract type aims to control costs, but the absence of competition hinders price discovery.

Value Assessment

Rating: questionable

The contract value of $67.9 million for engineering and logistical services is substantial. Without competitive bidding, it's difficult to benchmark pricing against similar contracts, raising questions about whether the government received the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer competitive pricing.

Taxpayer Impact: The lack of competition on this nearly $68 million contract means taxpayers may have paid a premium for these essential aviation support services.

Public Impact

Ensures continued operational readiness of the H-60 weapon system for the U.S. Army. Supports critical maintenance and overhaul functions at Corpus Christi Army Depot. Provides essential technical, engineering, and logistical expertise. Potential for higher costs due to lack of competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Limited price discovery

Positive Signals

Essential services for Army aviation
Firm-fixed-price contract

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector crucial for defense readiness. Spending benchmarks for such specialized aviation support services can vary widely, but a lack of competition often inflates costs compared to competitive procurements.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The 'CT' (Contract Type) and 'st' (Status) fields suggest this is a definitive contract. However, the lack of competition warrants closer oversight to ensure the services are delivered effectively and at a reasonable cost.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for inflated costs
Limited transparency in pricing
No small business participation evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.9 million to SIKORSKY AIRCRAFT CORPORATION. PROVIDE INTEGRATED SERVICES AND SUPPLIES TO INCLUDE TECHNICAL, ENGINEERING, AND LOGISTICAL SERVICES (TELS) AND 100% MATERIAL TO SUPPORT CORPUS CHRISTI ARMY DEPOT (CCAD) AND US ARMY AVIATION AND MISSILE COMMAND (AMCOM) IN THE OVERHAUL, REPAIR AND RECAPITALIZATION OF THE H-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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $67.9 million.

What is the period of performance?

Start: 2007-12-01. End: 2008-05-30.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is not provided in the data. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this justification, it's difficult to assess the necessity of bypassing the competitive process.

How does the cost of this contract compare to similar H-60 support contracts awarded competitively?

Direct comparison is challenging without access to specific, comparable competitive contracts. However, sole-source awards are generally expected to be higher than competitively bid contracts due to the absence of market pressure. A detailed cost analysis would be needed to determine if this contract's pricing is reasonable relative to the market.

What measures are in place to ensure the quality and effectiveness of services provided under this sole-source contract?

While the contract type is firm-fixed-price, which incentivizes cost control, oversight is crucial for sole-source awards. The Department of the Army likely has quality assurance personnel and performance metrics in place to monitor the technical, engineering, and logistical services. However, the lack of competition means there's less external validation of performance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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 ST, STRATFORD, CT, 06614

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $67,927,732

Exercised Options: $67,927,732

Current Obligation: $67,927,732

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline