DoD awards $42.3M for Black Hawk helicopter engine integration, extending R&D efforts

Contract Overview

Contract Amount: $42,315,363 ($42.3M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2022-08-26

End Date: 2027-06-30

Contract Duration: 1,769 days

Daily Burn Rate: $23.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CONTRACT AWARD AND EXERCISE OF OPTION 1 FOR THE INTEGRATION OF THE IMPROVED TURBINE ENGINE (ITE) ONTO THE UH/HH-60M BLACK HAWK HELICOPTER.

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $42.3 million to SIKORSKY AIRCRAFT CORPORATION for work described as: CONTRACT AWARD AND EXERCISE OF OPTION 1 FOR THE INTEGRATION OF THE IMPROVED TURBINE ENGINE (ITE) ONTO THE UH/HH-60M BLACK HAWK HELICOPTER. Key points: 1. Contract focuses on integrating an Improved Turbine Engine (ITE) onto the UH/HH-60M Black Hawk helicopter. 2. The award represents a significant investment in upgrading a critical military platform. 3. Research and Development in physical, engineering, and life sciences is the primary NAICS code. 4. The contract is a Cost Plus Fixed Fee type, indicating potential for cost overruns. 5. The duration of the contract is 1769 days, suggesting a long-term development project. 6. The award was made to Sikorsky Aircraft Corporation, a known entity in helicopter manufacturing.

Value Assessment

Rating: fair

This contract's value of $42.3 million for engine integration is difficult to benchmark without specific details on the scope of work and the technological advancements expected. As a Cost Plus Fixed Fee contract, there is inherent risk of costs exceeding initial estimates. However, the long duration suggests a comprehensive development and integration process. Further analysis would require comparing the cost per development day or per integration milestone against similar complex aerospace R&D projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach is often used when a specific contractor possesses unique capabilities, intellectual property, or has a pre-existing relationship with the technology being developed. While it ensures specialized expertise, it limits opportunities for competitive pricing and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Sole-source awards can mean taxpayers may not benefit from the cost savings typically achieved through competitive bidding processes.

Public Impact

The primary beneficiaries are the U.S. Army, through the modernization of its Black Hawk helicopter fleet. The services delivered involve research and development for engine integration, aiming to improve helicopter performance. The geographic impact is primarily within Connecticut, where Sikorsky Aircraft Corporation is located, but the ultimate impact is on Army aviation readiness nationwide. Workforce implications include skilled engineers, technicians, and support staff involved in advanced aerospace R&D.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure carries inherent risk of cost escalation.
Lack of competition limits price discovery and potentially increases overall cost to taxpayers.
Long contract duration may lead to scope creep or evolving requirements that increase costs.

Positive Signals

Award to an established contractor (Sikorsky) suggests access to specialized expertise for complex integration.
Focus on improving a critical platform (Black Hawk) indicates a commitment to enhancing military capabilities.
The contract supports advanced R&D in aerospace engineering.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on research and development for aircraft components. The market for helicopter upgrades and engine modernization is specialized, often dominated by a few key manufacturers. The $42.3 million award is significant for an R&D effort, reflecting the complexity of integrating new turbine engines into a proven platform like the Black Hawk. Comparable spending benchmarks would involve looking at other major aircraft modification and R&D contracts within the DoD.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). As a sole-source award to a large prime contractor, there are implications for subcontracting opportunities. While the prime contractor may engage small businesses for specific components or services, the primary award does not directly benefit small businesses through set-asides. The overall impact on the small business ecosystem depends on the subcontracting plan, which is not detailed here.

Oversight & Accountability

Oversight for this contract would likely fall under the Department of the Army's contracting and program management offices. As a research and development contract, specific oversight mechanisms would focus on technical progress, adherence to the fixed fee, and management of cost-plus elements. Transparency is generally maintained through contract reporting requirements, but detailed public access to R&D progress can be limited due to national security considerations. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Black Hawk Helicopter Program
Turbine Engine Manufacturing
Aerospace Research and Development
Military Aircraft Modernization

Risk Flags

Cost Plus Fixed Fee contract type
Sole-source award mechanism
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.3 million to SIKORSKY AIRCRAFT CORPORATION. CONTRACT AWARD AND EXERCISE OF OPTION 1 FOR THE INTEGRATION OF THE IMPROVED TURBINE ENGINE (ITE) ONTO THE UH/HH-60M BLACK HAWK HELICOPTER.

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 $42.3 million.

What is the period of performance?

Start: 2022-08-26. End: 2027-06-30.

What is the specific technological advancement expected from the Improved Turbine Engine (ITE) integration?

The Improved Turbine Engine (ITE) integration aims to enhance the performance, efficiency, and potentially the operational capabilities of the UH/HH-60M Black Hawk helicopter. Specific advancements could include increased power output for heavier payloads or operations in high-altitude/hot conditions, improved fuel efficiency leading to extended range or reduced operational costs, and potentially enhanced reliability and maintainability. The R&D effort would focus on the engineering challenges of adapting the new engine to the existing airframe, including modifications to the engine mounts, fuel systems, exhaust, and control systems. Detailed technical specifications and performance metrics are typically found in the contract's Statement of Work (SOW), which is not publicly available in this data.

How does the Cost Plus Fixed Fee (CPFF) contract structure impact potential cost overruns?

A Cost Plus Fixed Fee (CPFF) contract is designed to cover the contractor's allowable costs plus a fixed fee representing profit. This structure is often used for research and development or complex projects where the final costs are uncertain. While the fixed fee provides a ceiling on the contractor's profit, the government bears the risk of cost overruns if the actual allowable costs exceed the initial estimates. This means that if the project becomes more expensive than anticipated due to unforeseen technical challenges or material price increases, the government will pay the higher cost. Effective oversight and robust cost controls by the contracting agency are crucial to mitigate potential cost escalations under a CPFF arrangement.

What are the historical spending patterns for Black Hawk helicopter upgrades or engine programs?

Historical spending on Black Hawk helicopter upgrades and engine programs has been substantial, reflecting the platform's long service life and continuous need for modernization. The U.S. Army has consistently invested in maintaining and enhancing the UH-60 fleet's capabilities. Previous engine upgrade programs, such as the T700 engine variants, have involved significant R&D and procurement costs over decades. Specific figures vary widely depending on the scope of the upgrade (e.g., avionics, airframe, engines) and the number of aircraft affected. The current $42.3 million award for ITE integration is consistent with the scale of investment typically required for major component upgrades on a high-demand military asset like the Black Hawk.

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

Sikorsky Aircraft Corporation, a subsidiary of Lockheed Martin, has an extensive and well-established track record with the Black Hawk program, having been the original manufacturer of the UH-60 series. They have been responsible for the design, development, production, and sustainment of numerous Black Hawk variants for decades. This includes ongoing upgrades and modifications to the fleet. Their deep institutional knowledge, existing infrastructure, and proven performance with the platform make them a logical choice for complex integration tasks like the Improved Turbine Engine (ITE) project. Their history with the Black Hawk suggests a high likelihood of successful technical execution, although cost management remains a key oversight area.

Are there alternative turbine engines or integration approaches that were considered?

Given that this contract was awarded on a sole-source basis ('NOT COMPETED'), it suggests that alternative turbine engines or integration approaches were likely not formally evaluated through a competitive bidding process for this specific award. The decision to award solely to Sikorsky Aircraft Corporation implies that the Army either determined Sikorsky possessed unique capabilities, proprietary technology, or that pursuing a sole-source path was deemed most advantageous for reasons such as existing platform familiarity, reduced integration risk, or program schedule constraints. While alternatives might have been explored internally or in prior phases, the current award mechanism did not involve a comparative evaluation of different engine options or integration methodologies from multiple vendors.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W58RGZ21R0131

Offers Received: 1

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: $164,420,297

Exercised Options: $54,315,363

Current Obligation: $42,315,363

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $569,350

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline