DoD Awards $18.9M for VIP Black Hawk Helicopter Modifications to Sabreliner Aviation LLC

Contract Overview

Contract Amount: $18,899,592 ($18.9M)

Contractor: Sabreliner Aviation LLC

Awarding Agency: Department of Defense

Start Date: 2011-03-24

End Date: 2014-07-31

Contract Duration: 1,225 days

Daily Burn Rate: $15.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: VERY IMPORTANT PERSON (VIP) INTERIOR MODIFICATION OF TWO UH-60M BLACK HAWK HELICOPTERS.

Place of Performance

Location: SAINT LOUIS, ST. LOUIS County, MISSOURI, 63105

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $18.9 million to SABRELINER AVIATION LLC for work described as: VERY IMPORTANT PERSON (VIP) INTERIOR MODIFICATION OF TWO UH-60M BLACK HAWK HELICOPTERS. Key points: 1. High-value contract for specialized aircraft modification. 2. Sole-source award limits competitive pricing. 3. Potential risk in single-vendor reliance for critical modifications. 4. Sector: Defense - Aircraft Manufacturing.

Value Assessment

Rating: questionable

Pricing for VIP interior modifications on military helicopters is highly specialized and difficult to benchmark without detailed cost breakdowns. The firm-fixed-price contract aims to control costs, but the lack of competition makes a direct comparison to similar contracts challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competition. This method may lead to higher prices as the contractor faces no pressure from competing bids. The 'NOT AVAILABLE FOR COMPETITION' status suggests specific justifications were likely made.

Taxpayer Impact: Taxpayer funds are used for a specialized modification with limited transparency on cost-effectiveness due to the sole-source nature of the award.

Public Impact

Modification of essential military assets for VIP transport. Potential for cost overruns due to sole-source award. Impact on operational readiness if modifications are delayed or flawed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of competition
  • High contract value for specialized service

Positive Signals

  • Firm-fixed-price contract type
  • Specific aircraft type (UH-60M Black Hawk)

Sector Analysis

The defense sector, particularly aircraft manufacturing and modification, often involves high-value, specialized contracts. Benchmarks for VIP interior modifications are scarce due to their custom nature, making cost assessment difficult.

Small Business Impact

The contract was awarded to Sabreliner Aviation LLC, a company that may or may not be a small business. The data provided does not specify small business participation or set-asides for this contract.

Oversight & Accountability

Oversight would typically be managed by the Defense Contract Management Agency (DCMA). Ensuring proper execution and adherence to specifications within the firm-fixed-price structure is key to accountability.

Related Government Programs

  • Aircraft Manufacturing
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Sole-source award limits price competition.
  • High value for specialized, non-standard modifications.
  • Potential for scope creep or cost overruns.
  • Lack of clear small business participation.

Tags

aircraft-manufacturing, department-of-defense, mo, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 million to SABRELINER AVIATION LLC. VERY IMPORTANT PERSON (VIP) INTERIOR MODIFICATION OF TWO UH-60M BLACK HAWK HELICOPTERS.

Who is the contractor on this award?

The obligated recipient is SABRELINER AVIATION LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $18.9 million.

What is the period of performance?

Start: 2011-03-24. End: 2014-07-31.

What specific justification was provided for the sole-source award, and how does it ensure fair pricing?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For VIP modifications, this might be due to proprietary technology, unique expertise, or specific integration requirements with the existing airframe. However, fair pricing in such scenarios relies heavily on robust negotiation, cost analysis by the agency, and potentially market research to establish a reasonable price range.

What are the risks associated with modifying critical military assets like Black Hawk helicopters for VIP use?

Modifying critical military assets for VIP use introduces several risks. These include potential degradation of original performance specifications, increased maintenance complexity, and the diversion of resources from primary military missions. Furthermore, the specialized nature of VIP interiors might not align with standard military operational requirements, potentially leading to vulnerabilities or reduced utility in combat or tactical scenarios.

How does this contract contribute to the overall effectiveness and readiness of the UH-60M fleet?

The effectiveness and readiness impact depend on the specific purpose of the VIP modifications. If these helicopters are intended for essential command and control, high-level personnel transport during critical operations, or diplomatic missions, the modifications could enhance effectiveness. However, if they detract from the helicopter's core military capabilities or lead to extended downtime for modifications, readiness could be negatively impacted.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingAircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ11R0212

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1390 HWY H, PERRYVILLE, MO, 08

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,899,592

Exercised Options: $18,899,592

Current Obligation: $18,899,592

Contract Characteristics

Cost or Pricing Data: YES

Timeline

Start Date: 2011-03-24

Current End Date: 2014-07-31

Potential End Date: 2014-07-31 00:00:00

Last Modified: 2014-09-09

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