DoD Awards $79M to Sikorsky for H-60 Helicopter Services, Lacking Competition

Contract Overview

Contract Amount: $79,216,407 ($79.2M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2008-06-02

End Date: 2019-03-01

Contract Duration: 3,924 days

Daily Burn Rate: $20.2K/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 $79.2 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. Significant contract value of $79.2 million for critical aviation support. 2. Sole-source award to Sikorsky Aircraft Corporation raises competition concerns. 3. Long contract duration (3924 days) may indicate potential for cost overruns. 4. Focus on H-60 weapon system highlights specialized defense sector spending.

Value Assessment

Rating: questionable

The contract value of $79.2 million for integrated services and supplies for H-60 helicopter overhaul and repair appears substantial. Without comparable contract data or detailed cost breakdowns, it's difficult to definitively assess its pricing against similar services. However, the lack of competition suggests potential for inflated pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits price discovery and potentially leads to higher costs for taxpayers. The justification for sole-source procurement is not provided, which warrants further scrutiny.

Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for these essential aviation services, as there was no market pressure to drive down costs.

Public Impact

Ensures continued operational readiness of the H-60 helicopter fleet, vital for military operations. Supports critical maintenance and overhaul functions at Corpus Christi Army Depot (CCAD). Potential for taxpayer funds to be used inefficiently due to sole-source award. Highlights reliance on a single contractor for specialized aviation support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration

Positive Signals

Supports critical weapon system
Ensures operational readiness

Sector Analysis

This contract falls within the Defense sector, specifically focusing on engineering and technical services for aviation maintenance. Spending benchmarks in this area are highly specialized, but large sole-source contracts for complex weapon systems often warrant close examination for cost-effectiveness.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). There is no indication of subcontracting opportunities for small businesses within this sole-source award.

Oversight & Accountability

The sole-source nature of this award raises questions about the effectiveness of oversight in ensuring competitive procurement practices. Further investigation into the justification for sole-source status and any subsequent performance monitoring is recommended.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award lacks competition
Potential for inflated pricing
Limited transparency on justification for sole-source
Long contract duration may increase risk
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $79.2 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $79.2 million.

What is the period of performance?

Start: 2008-06-02. End: 2019-03-01.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data does not include the justification for the sole-source award. 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 information, it's impossible to assess if competitive alternatives were adequately explored or if this was the most cost-effective approach for the government.

How does the per-unit cost of H-60 overhaul and repair services under this contract compare to industry benchmarks or previous contracts?

A direct per-unit cost comparison is not feasible with the provided data. The contract value is a total amount, and specific unit costs for overhaul or repair are not detailed. Benchmarking would require access to detailed cost breakdowns and data from similar contracts, which are not available here. The lack of competition further complicates a fair cost assessment.

What measures are in place to ensure the effectiveness and efficiency of Sikorsky Aircraft Corporation's services given the sole-source nature of the contract?

While the contract is sole-source, standard government oversight mechanisms should be in place to ensure performance. This includes contract surveillance by the Defense Contract Management Agency (DCMA) to monitor progress, quality, and adherence to terms. However, the absence of competition means that the primary driver for efficiency—market pressure—is missing, making robust government oversight even more critical.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

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, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $79,216,407

Exercised Options: $79,216,407

Current Obligation: $79,216,407

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline