DoD awards $21.9M for helicopter blade overhaul, with SIKORSKY AIRCRAFT CORPORATION as sole source
Contract Overview
Contract Amount: $21,924,404 ($21.9M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2023-07-10
End Date: 2027-02-28
Contract Duration: 1,329 days
Daily Burn Rate: $16.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR THE OVERHAUL OF THE BLADE, ROTARY WING NSN: 1615-01-546-1148, QTY: CAT II 75, CAT III 225.
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $21.9 million to SIKORSKY AIRCRAFT CORPORATION for work described as: DELIVERY ORDER FOR THE OVERHAUL OF THE BLADE, ROTARY WING NSN: 1615-01-546-1148, QTY: CAT II 75, CAT III 225. Key points: 1. Significant contract value for critical aircraft component maintenance. 2. Sole-source award to SIKORSKY AIRCRAFT CORPORATION raises competition concerns. 3. Long performance period (2027) suggests complex or extensive overhaul work. 4. Focus on rotary wing aircraft parts indicates a specialized defense sector need.
Value Assessment
Rating: questionable
The contract value of $21.9M for 300 units (75 CAT II, 225 CAT III) suggests a per-unit cost of approximately $73,081. Without specific details on the overhaul complexity, it's difficult to benchmark against similar contracts, but the sole-source nature warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to SIKORSKY AIRCRAFT CORPORATION. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in the government paying a premium for these overhaul services, impacting taxpayer funds.
Public Impact
Ensures continued operational readiness of rotary wing aircraft. Supports a critical component within the Department of the Army's aviation fleet. Potential for increased costs due to sole-source procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long performance period
Positive Signals
- Ensures critical component availability
- Supports military readiness
Sector Analysis
The contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, specifically supporting rotary wing aircraft maintenance. Spending in this niche defense sector is often characterized by specialized manufacturers and can involve significant R&D or proprietary technology.
Small Business Impact
The awardee, SIKORSKY AIRCRAFT CORPORATION, is a large business. There is no indication that small businesses were involved in this specific delivery order, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost overruns. Accountability for the justification of the non-competitive award is crucial.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source procurement
- Potential for inflated pricing
- Limited transparency in cost justification
- Dependency on a single supplier
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 $21.9 million to SIKORSKY AIRCRAFT CORPORATION. DELIVERY ORDER FOR THE OVERHAUL OF THE BLADE, ROTARY WING NSN: 1615-01-546-1148, QTY: CAT II 75, CAT III 225.
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 $21.9 million.
What is the period of performance?
Start: 2023-07-10. End: 2027-02-28.
What is the justification for the sole-source award to SIKORSKY AIRCRAFT CORPORATION for this specific blade overhaul?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or the absence of other responsible sources capable of meeting the government's requirements. For SIKORSKY, it might relate to specific design knowledge or manufacturing processes essential for their own helicopter models' blade systems.
How does the per-unit cost of this overhaul compare to industry benchmarks for similar rotary wing aircraft components?
Benchmarking is challenging without detailed specifications of the overhaul scope and the specific helicopter models. However, given the sole-source nature and the significant value, a thorough review against available market data for comparable services is recommended to ensure cost-effectiveness and identify any potential overpricing.
What is the long-term strategy for ensuring competitive sourcing for future blade overhaul requirements?
The Department of Defense should explore strategies to foster competition for future overhaul needs. This could involve encouraging new entrants, developing alternative repair capabilities, or breaking down requirements into smaller lots to attract a wider range of bidders, thereby mitigating reliance on single sources.
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,924,404
Exercised Options: $21,924,404
Current Obligation: $21,924,404
Actual Outlays: $3,368,202
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ22D0002
IDV Type: IDC
Timeline
Start Date: 2023-07-10
Current End Date: 2027-02-28
Potential End Date: 2027-02-28 12:02:00
Last Modified: 2025-09-11
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