DoD awards $34.35M for Saudi National Guard support, with Sikorsky Aircraft Corporation as sole provider
Contract Overview
Contract Amount: $34,354,541 ($34.4M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2014-08-28
End Date: 2017-11-30
Contract Duration: 1,190 days
Daily Burn Rate: $28.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: INITIAL SPARES AND AIRCRAFT GROUND SUPPORT EQUIPMENT IN SUPPORT OF THE SAUDI ARABIAN NATIONAL GUARD, FMS CASE SI-B-WXP.
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $34.4 million to SIKORSKY AIRCRAFT CORPORATION for work described as: INITIAL SPARES AND AIRCRAFT GROUND SUPPORT EQUIPMENT IN SUPPORT OF THE SAUDI ARABIAN NATIONAL GUARD, FMS CASE SI-B-WXP. Key points: 1. High contract value for specialized aircraft support. 2. Sole-source award limits competitive pricing. 3. Potential risk in reliance on a single supplier for critical spares. 4. Sector: Defense - Aircraft Parts Manufacturing.
Value Assessment
Rating: questionable
The contract value of $34.35M is significant for initial spares and ground support. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar FMS procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating no competition was sought. This significantly limits price discovery and may lead to higher costs for the taxpayer.
Taxpayer Impact: The lack of competition in this sole-source award raises concerns about potential overspending of taxpayer funds allocated for foreign military sales.
Public Impact
Taxpayer funds are used for foreign military sales, impacting budget allocation. Dependence on a single supplier for critical equipment can create supply chain vulnerabilities. Ensuring fair pricing in sole-source contracts is crucial for responsible fiscal management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Supports critical foreign military sales
- Definitive contract type
Sector Analysis
This contract falls within the Defense sector, specifically related to aircraft parts and auxiliary equipment manufacturing. Spending benchmarks for similar sole-source FMS contracts are difficult to establish due to limited data.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if opportunities were missed for small business participation in the supply chain.
Oversight & Accountability
Oversight is critical for sole-source contracts to ensure fair pricing and prevent waste. The FMS program requires robust accountability mechanisms to justify non-competitive awards.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for uncompetitive pricing.
- Lack of transparency in price justification.
- Dependency on a single supplier.
- Foreign Military Sales context requires careful oversight.
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 $34.4 million to SIKORSKY AIRCRAFT CORPORATION. INITIAL SPARES AND AIRCRAFT GROUND SUPPORT EQUIPMENT IN SUPPORT OF THE SAUDI ARABIAN NATIONAL GUARD, FMS CASE SI-B-WXP.
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 $34.4 million.
What is the period of performance?
Start: 2014-08-28. End: 2017-11-30.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent requirements where only one source can fulfill the need. Price reasonableness is usually determined through cost analysis, comparison to historical data (if available), or market research, though the absence of competition inherently makes this assessment more challenging and less definitive.
What are the long-term risks associated with relying on a single supplier for critical aircraft spares and ground support equipment?
Long-term risks include potential price escalations due to lack of competition, supply chain disruptions if the sole supplier faces issues, limited access to innovation or upgrades, and potential obsolescence if the supplier discontinues support. This dependence can also reduce negotiating leverage for future procurements.
How does this contract contribute to the overall effectiveness and readiness of the Saudi Arabian National Guard's aviation assets?
This contract is intended to provide essential initial spares and ground support equipment, which are critical for the operational readiness and maintenance of the Royal Saudi Land Forces Aviation Command's aircraft. Ensuring timely availability of these components directly impacts the ability to sustain flight operations and maintain the effectiveness of their air assets.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W58RGZ13R0232
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,354,541
Exercised Options: $34,354,541
Current Obligation: $34,354,541
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-08-28
Current End Date: 2017-11-30
Potential End Date: 2017-11-30 12:11:00
Last Modified: 2017-02-22
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