Army Awards $38M Software Sustainment Contract to Sikorsky Aircraft Corporation
Contract Overview
Contract Amount: $38,076,363 ($38.1M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2020-09-15
End Date: 2026-02-28
Contract Duration: 1,992 days
Daily Burn Rate: $19.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: SUPPORT SERVICE SINGLE AWARD IDIQ TASK ORDER FOR SOFTWARE (SW)SUSTAINMENT.
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $38.1 million to SIKORSKY AIRCRAFT CORPORATION for work described as: SUPPORT SERVICE SINGLE AWARD IDIQ TASK ORDER FOR SOFTWARE (SW)SUSTAINMENT. Key points: 1. Contract awarded for software sustainment services. 2. Sikorsky Aircraft Corporation is the sole awardee. 3. The contract has a duration of approximately 5.5 years. 4. No small business participation noted.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total value is substantial, but without a per-unit cost benchmark, assessing value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this $38M contract raises concerns about whether the government achieved the best possible price and value for taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the lack of competition. The long duration of the contract limits opportunities for other vendors to compete. Dependence on a single vendor for critical software sustainment could pose a risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- No small business participation
Positive Signals
- Long-term sustainment plan
- Specific vendor expertise may be required
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, with a significant portion allocated to software sustainment. Benchmarks for software sustainment contracts vary widely, but the sole-source nature here warrants scrutiny.
Small Business Impact
The contract explicitly states no small business participation. This is a missed opportunity to support small businesses and could indicate a lack of outreach or a focus on large prime contractors.
Oversight & Accountability
The sole-source nature of this award suggests limited oversight in the initial procurement phase. Ongoing oversight will be critical to manage costs under the Cost Plus Fixed Fee structure.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- No small business participation
- Potential for cost overruns
- Vendor lock-in
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.1 million to SIKORSKY AIRCRAFT CORPORATION. SUPPORT SERVICE SINGLE AWARD IDIQ TASK ORDER FOR SOFTWARE (SW)SUSTAINMENT.
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 $38.1 million.
What is the period of performance?
Start: 2020-09-15. End: 2026-02-28.
What specific software is being sustained, and why is Sikorsky Aircraft Corporation the only viable provider?
The data does not specify the software. However, given Sikorsky's role in aircraft manufacturing, the software likely relates to their specific platforms or systems. A sole-source justification would typically detail proprietary knowledge, unique capabilities, or essential integration requirements that only the incumbent contractor can fulfill, necessitating a thorough review to ensure no alternatives were overlooked.
What are the cost control mechanisms in place for this Cost Plus Fixed Fee contract to mitigate potential overruns?
Cost Plus Fixed Fee contracts require robust oversight to manage expenses. Key mechanisms include detailed cost tracking, regular audits, defined fee structures tied to performance or milestones, and clear limitations on allowable costs. The Department of the Army must actively monitor expenditures against the estimated cost and ensure the fixed fee remains appropriate throughout the contract's life.
What is the long-term strategy for software sustainment beyond this contract's end date, and will future competition be considered?
The provided data does not outline a long-term strategy. Given the sole-source nature of this award, it is crucial for the Department of the Army to plan for future sustainment needs. This should include assessing whether the software or system will require continued sole-source support or if opportunities for competitive procurement can be developed as the technology evolves or vendor capabilities change.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,512,071
Exercised Options: $38,076,363
Current Obligation: $38,076,363
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $349,025
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W58RGZ19D0079
IDV Type: IDC
Timeline
Start Date: 2020-09-15
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 12:02:00
Last Modified: 2025-04-29
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