DoD Awards $57.4M Contract to Sikorsky for UH-60M Black Hawk Spare Parts

Contract Overview

Contract Amount: $57,437,812 ($57.4M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2018-12-20

End Date: 2022-09-30

Contract Duration: 1,380 days

Daily Burn Rate: $41.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS ACTION IS TO PROCURE, FABRICATE AND ASSEMBLE INTO KITS NEW UH-60M UNIQUE SPARE PARTS AND LONG-LEAD PRODUCTION MATERIAL, IN SUPPORT OF THE SANG FMS CASES SI-B-WXZ AND SI-B-WYA, AND FOR THE PROCUREMENT OF ADDITIONAL SPARES AND LONG-LEAD PRODUCTION MATERIAL FOR THE RSLF-ASSF FMS CASE SR-B-ZAD.

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $57.4 million to SIKORSKY AIRCRAFT CORPORATION for work described as: THIS ACTION IS TO PROCURE, FABRICATE AND ASSEMBLE INTO KITS NEW UH-60M UNIQUE SPARE PARTS AND LONG-LEAD PRODUCTION MATERIAL, IN SUPPORT OF THE SANG FMS CASES SI-B-WXZ AND SI-B-WYA, AND FOR THE PROCUREMENT OF ADDITIONAL SPARES AND LONG-LEAD PRODUCTION MATERIAL FOR THE RSLF-ASSF FM… Key points: 1. Contract awarded to Sikorsky Aircraft Corporation for critical UH-60M spare parts. 2. Funding supports Foreign Military Sales (FMS) cases for Saudi Arabia and other allies. 3. The contract is a Firm Fixed Price (FFP) type, indicating clear cost expectations. 4. No small business participation is noted in this specific award.

Value Assessment

Rating: fair

The contract value of $57.4 million for specialized aircraft parts appears within a reasonable range for unique, long-lead items. However, without specific part-level cost data or a competitive benchmark, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed, likely due to the specialized nature of the parts and the existing relationship with Sikorsky as the original equipment manufacturer. This limited competition may impact price discovery and potentially lead to higher costs.

Taxpayer Impact: Taxpayers are funding the procurement of essential spare parts for allied military aircraft, contributing to national security and international partnerships.

Public Impact

Ensures operational readiness of UH-60M helicopters for allied nations through FMS. Supports the defense industrial base by providing work for Sikorsky Aircraft Corporation. Contributes to U.S. foreign policy objectives by supplying critical military equipment to partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpricing.
Lack of small business involvement limits broader economic impact.
Long contract duration (1380 days) could introduce cost volatility.

Positive Signals

Supports critical military readiness for allied nations.
Firm Fixed Price contract provides cost certainty.
Procurement of long-lead items ensures future availability.

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector is often driven by defense needs and the lifecycle support of complex military platforms like the UH-60M Black Hawk.

Small Business Impact

This award did not include provisions for small business participation. Given the specialized nature of the parts and the sole-source aspect, opportunities for small businesses may have been limited in this specific procurement.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is responsible for overseeing this contract. Standard procurement regulations and FMS oversight mechanisms would apply to ensure accountability.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition may lead to higher costs.
Lack of transparency in specific part costs.
Potential for price increases over the long contract duration.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.4 million to SIKORSKY AIRCRAFT CORPORATION. THIS ACTION IS TO PROCURE, FABRICATE AND ASSEMBLE INTO KITS NEW UH-60M UNIQUE SPARE PARTS AND LONG-LEAD PRODUCTION MATERIAL, IN SUPPORT OF THE SANG FMS CASES SI-B-WXZ AND SI-B-WYA, AND FOR THE PROCUREMENT OF ADDITIONAL SPARES AND LONG-LEAD PRODUCTION MATERIAL FOR THE RSLF-ASSF FMS CASE SR-B-ZAD.

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 $57.4 million.

What is the period of performance?

Start: 2018-12-20. End: 2022-09-30.

What is the specific breakdown of parts being procured and their individual cost drivers?

The contract data does not provide a detailed breakdown of the specific UH-60M spare parts being procured or their individual cost drivers. Understanding the nature of these parts (e.g., standard vs. highly specialized, long-lead time components) would be crucial for a more granular value assessment and to identify potential areas for cost savings in future procurements.

What efforts were made to explore alternative sources or competitive options, even for long-lead items?

The provided data states the contract is 'NOT AVAILABLE FOR COMPETITION,' implying limited or no exploration of alternative sources. While Sikorsky is the OEM, agencies should document thorough market research, including potential second-sourcing or competitive prototyping for long-lead items, to ensure the government is obtaining the best value, even in limited competition scenarios.

How does the unit cost of these spare parts compare to historical data or similar FMS procurements?

Without specific part numbers and quantities, a direct unit cost comparison is not feasible. Benchmarking against previous procurements of the same or similar UH-60M parts, both domestically and through other FMS cases, would be necessary to assess if the current pricing is competitive and reflects fair market value over time.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: HARDWARE AND ABRASIVES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ17R0026

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

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: $57,437,812

Exercised Options: $57,437,812

Current Obligation: $57,437,812

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $19,571,855

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline