DoD's $32.3M Black Hawk Blade Maintenance Contract Awarded to Sikorsky Aircraft Corporation

Contract Overview

Contract Amount: $32,313,221 ($32.3M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2019-12-18

End Date: 2025-01-31

Contract Duration: 1,871 days

Daily Burn Rate: $17.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MAINTENANCE AND OVERHAUL OF THE ROTARY WING BLADE IN SUPPORT OF THE UH-60 BLACKHAWK.

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $32.3 million to SIKORSKY AIRCRAFT CORPORATION for work described as: MAINTENANCE AND OVERHAUL OF THE ROTARY WING BLADE IN SUPPORT OF THE UH-60 BLACKHAWK. Key points: 1. Contract focuses on essential maintenance and overhaul for UH-60 Black Hawk helicopter rotor blades. 2. Sole-source award to Sikorsky Aircraft Corporation, the original equipment manufacturer, raises questions about competition. 3. Long-term contract duration (over 5 years) suggests a critical, ongoing need for these services. 4. Fixed-price contract type aims to control costs, but the absence of competition may limit price discovery. 5. The contract's value is significant within the specialized aerospace maintenance sector. 6. Performance is tied to the operational readiness of a key military helicopter platform.

Value Assessment

Rating: fair

Benchmarking the value of this sole-source contract is challenging due to the lack of competitive bids. Sikorsky, as the OEM, likely possesses unique knowledge and tooling for UH-60 blade maintenance. However, without competitive proposals, it's difficult to ascertain if the $32.3 million price reflects optimal value for money or if potential savings were forgone. The fixed-price nature provides some cost certainty, but the absence of competition warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Sikorsky Aircraft Corporation. As the original manufacturer of the UH-60 Black Hawk, Sikorsky is presumed to be the only entity capable of performing this specialized maintenance and overhaul. The lack of competition means that taxpayers did not benefit from a bidding process that could have driven down prices through market forces.

Taxpayer Impact: The sole-source nature means taxpayers may not have received the lowest possible price for these critical helicopter blade services, as there was no competitive pressure to reduce costs.

Public Impact

The primary beneficiaries are the U.S. Army and other branches operating the UH-60 Black Hawk, ensuring the continued airworthiness of their rotorcraft. Services delivered include essential maintenance and overhaul, crucial for flight safety and operational readiness. Geographic impact is national, supporting military aviation operations across various bases and deployment locations. Workforce implications include specialized technical jobs within Sikorsky Aircraft Corporation focused on aerospace maintenance and engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs for taxpayers.
Long contract duration could mask inefficiencies if not closely monitored.
Reliance on a single provider for critical components raises supply chain risk if Sikorsky faces operational issues.

Positive Signals

Award to the OEM ensures specialized knowledge and adherence to original specifications.
Fixed-price contract provides cost predictability for the government.
Focus on essential maintenance directly supports military operational readiness.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. The market for specialized maintenance and overhaul of military aircraft like the UH-60 Black Hawk is often dominated by original equipment manufacturers (OEMs) due to proprietary knowledge, tooling, and certifications. Comparable spending benchmarks are difficult to establish publicly for such niche, sole-source services, but the overall defense aerospace maintenance market is substantial.

Small Business Impact

This contract does not appear to involve small business set-asides, as it was awarded sole-source to a large corporation. There is no explicit information regarding subcontracting opportunities for small businesses within this specific award. The impact on the small business ecosystem is likely minimal unless Sikorsky voluntarily engages small businesses for specific components or services not covered by this direct contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the fixed-price contract type, requiring Sikorsky to deliver services within the agreed-upon terms. Transparency is limited due to the sole-source nature, but contract award details are generally available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

UH-60 Black Hawk Helicopter Procurement
Aerospace Component Manufacturing
Military Aircraft Maintenance Services
Defense Logistics Agency Support Contracts

Risk Flags

Sole-source award
Potential for cost overruns without competition
Critical component maintenance dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.3 million to SIKORSKY AIRCRAFT CORPORATION. MAINTENANCE AND OVERHAUL OF THE ROTARY WING BLADE IN SUPPORT OF THE UH-60 BLACKHAWK.

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 $32.3 million.

What is the period of performance?

Start: 2019-12-18. End: 2025-01-31.

What is Sikorsky Aircraft Corporation's track record with the UH-60 Black Hawk program?

Sikorsky Aircraft Corporation, a subsidiary of Lockheed Martin, is the original manufacturer of the UH-60 Black Hawk helicopter. They have a long and extensive history with the platform, dating back to its development in the 1970s. Their track record includes design, manufacturing, and ongoing support, including maintenance, repair, and overhaul (MRO) services. Sikorsky is known for its deep technical expertise and proprietary knowledge of the Black Hawk's systems, including its complex rotor blade assemblies. Past performance data, often detailed in contract performance reports (CPARs), would provide specific insights into their delivery, quality, and cost control on previous contracts, though such detailed data is not provided here.

How does the $32.3 million contract value compare to similar maintenance contracts for military rotorcraft?

Directly comparing this $32.3 million contract value to similar maintenance contracts for military rotorcraft is challenging due to several factors, primarily the sole-source nature of this award and the specific focus on UH-60 rotor blades. Competitive contracts for broader helicopter MRO services might show different price points. However, considering the specialized nature of rotor blade overhaul and the long duration (over 5 years), the annual average of approximately $6.5 million appears significant but potentially justifiable given the critical safety and performance requirements. Without access to competitive bids or data on contracts for comparable OEM-specific component maintenance, a precise value-for-money assessment against market rates is difficult.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competitive bidding. Sikorsky Aircraft Corporation, as the sole provider, faces less pressure to optimize costs. Another risk is vendor lock-in, where the government becomes highly dependent on Sikorsky for critical maintenance, potentially limiting future flexibility or negotiation power. Performance risk, while generally mitigated by Sikorsky's OEM status, still exists; any delays or quality issues in blade maintenance could impact UH-60 operational readiness. Finally, there's a risk that alternative, potentially more cost-effective, maintenance solutions might not be explored or developed due to the established sole-source relationship.

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

This contract is crucial for the overall effectiveness and readiness of the UH-60 Black Hawk fleet. Rotor blades are critical flight components that undergo significant stress and require regular, specialized maintenance and overhaul to ensure airworthiness, safety, and optimal performance. By securing these services through Sikorsky, the original equipment manufacturer, the Department of the Army ensures that maintenance is performed to the highest standards, utilizing specific technical knowledge and approved procedures. This directly supports the fleet's ability to meet operational demands, whether for troop transport, medical evacuation, or combat support missions, thereby maintaining a high level of military readiness.

What are the historical spending patterns for UH-60 Black Hawk blade maintenance?

Historical spending patterns for UH-60 Black Hawk blade maintenance, particularly through sole-source contracts with Sikorsky, likely show consistent, significant investment over the years. The UH-60 has been a workhorse in the U.S. military for decades, necessitating continuous support. While the specific $32.3 million figure is for the current contract period (2019-2025), previous contracts for similar services would have existed. These historical expenditures would reflect the ongoing need for blade upkeep, potential price escalations over time, and the government's reliance on the OEM. Analyzing past spending trends could reveal patterns of cost growth or stability, informing future procurement strategies and negotiations.

Are there any alternative providers or technologies that could offer similar blade maintenance services?

While Sikorsky, as the OEM, holds unique proprietary knowledge and certifications for UH-60 Black Hawk rotor blade maintenance, the possibility of alternative providers or technologies exists, though likely limited. Independent repair facilities specializing in aerospace components might offer some services, but they would typically require extensive validation and certification to perform work on critical flight components like rotor blades, especially for military applications. Furthermore, Sikorsky itself may evolve its maintenance procedures or introduce new technologies to improve efficiency or durability. The government's decision to award sole-source suggests that, at the time of award, no viable or sufficiently qualified alternatives were identified or deemed practical for this specific scope of work.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $32,313,221

Exercised Options: $32,313,221

Current Obligation: $32,313,221

Actual Outlays: $21,194,160

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W58RGZ19D0062

IDV Type: IDC

Timeline