DoD awards $5.4M Black Hawk overhaul contract to Overhaul Support Services, LLC

Contract Overview

Contract Amount: $5,397,007 ($5.4M)

Contractor: Overhaul Support Services, LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-11

End Date: 2026-01-31

Contract Duration: 873 days

Daily Burn Rate: $6.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FIVE-YEAR INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT FOR THE OVERHAUL OF THE SPINDLE, HEAD, ROTARY IN SUPPORT OF THE UH-60 BLACKHAWK WEAPON SYSTEM.

Place of Performance

Location: EAST GRANBY, HARTFORD County, CONNECTICUT, 06026

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $5.4 million to OVERHAUL SUPPORT SERVICES, LLC for work described as: FIVE-YEAR INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT FOR THE OVERHAUL OF THE SPINDLE, HEAD, ROTARY IN SUPPORT OF THE UH-60 BLACKHAWK WEAPON SYSTEM. Key points: 1. Contract focuses on critical UH-60 Black Hawk weapon system components. 2. Awarded as a sole-source, firm-fixed-price contract. 3. Performance period spans over two years. 4. Geographic focus on Connecticut. 5. No small business set-aside was utilized. 6. The contract type is an Indefinite Delivery Indefinite Quantity (IDIQ).

Value Assessment

Rating: fair

The contract value of $5.4 million for overhaul support services for the UH-60 Black Hawk weapon system appears reasonable given the specialized nature of military aircraft maintenance. However, without direct comparable contracts for similar overhaul services on this specific platform, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty for the government, but the lack of competition could potentially lead to less favorable pricing than a competed contract. Benchmarking against industry standards for complex aerospace component overhauls would be necessary for a more definitive valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary specialized capabilities, proprietary knowledge, or when urgent needs cannot be met through competitive means. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms. It is crucial to understand the justification for this sole-source award to ensure it was appropriate and that alternatives were considered.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from competitive bidding. This limits price discovery and potentially allows the awarded contractor to set terms that may not be as cost-effective as they would be in a competitive environment.

Public Impact

The primary beneficiaries are the U.S. Army aviation units relying on the UH-60 Black Hawk helicopter for critical missions. The contract ensures the continued operational readiness and safety of a key military asset. Services will be performed in Connecticut, potentially supporting local technical expertise and employment. The contract supports the maintenance and sustainment of a vital component of the U.S. Army's rotary-wing fleet.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award requires strong justification to ensure necessity and fairness.
Limited transparency into the selection process due to non-competitive nature.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Focus on a critical weapon system ensures operational readiness.
Contract duration allows for sustained support and planning.

Sector Analysis

The aerospace and defense industry is characterized by high barriers to entry, specialized technical expertise, and significant government investment. Contracts for the maintenance and overhaul of complex military platforms like the UH-60 Black Hawk are crucial for ensuring fleet readiness. This sector often sees a mix of competitive bidding for standardized services and sole-source awards for highly specialized or proprietary maintenance requirements. The market for such services is driven by defense budgets and the operational tempo of military branches. Benchmarking against similar sustainment contracts for other rotary-wing aircraft could provide further context.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The sole-source nature of the award further limits opportunities for small businesses to participate directly. Without explicit set-aside provisions or subcontracting goals, the direct impact on the small business ecosystem for this specific contract is likely minimal, unless the prime contractor voluntarily engages small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a sole-source award, scrutiny may be higher to ensure the justification is sound and the pricing is fair. Transparency is limited by the non-competitive nature, but contract performance, milestones, and payments would be tracked. Inspector General involvement would be contingent on any reported issues of fraud, waste, or abuse.

Related Government Programs

UH-60 Black Hawk Helicopter Sustainment
Aviation Component Overhaul Services
Department of Defense Maintenance and Repair Contracts
Army Aviation Readiness Programs

Risk Flags

Sole-source award requires justification.
Potential for higher costs due to lack of competition.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.4 million to OVERHAUL SUPPORT SERVICES, LLC. FIVE-YEAR INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT FOR THE OVERHAUL OF THE SPINDLE, HEAD, ROTARY IN SUPPORT OF THE UH-60 BLACKHAWK WEAPON SYSTEM.

Who is the contractor on this award?

The obligated recipient is OVERHAUL SUPPORT SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

Start: 2023-09-11. End: 2026-01-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED'. Typically, sole-source awards are justified when only one responsible source is available or capable of meeting the requirement. This could be due to proprietary technology, unique expertise, or urgent and compelling circumstances. For this specific contract, the justification would likely stem from Overhaul Support Services, LLC possessing unique capabilities or intellectual property related to the overhaul of the spindle, head, and rotary components of the UH-60 Black Hawk weapon system. A thorough review of the Justification and Approval (J&A) document, if publicly available, would detail the specific reasons and the market research conducted to determine the lack of adequate competition.

How does the pricing of this contract compare to similar overhaul services for military helicopters?

A direct comparison of pricing is difficult without access to detailed cost breakdowns and data from similar contracts for the UH-60 Black Hawk or comparable military helicopters. The firm-fixed-price nature of this contract provides cost certainty for the government, but the sole-source award means there was no competitive bidding process to benchmark pricing against. To assess value, one would need to compare the proposed labor rates, material costs, and overhead applied by Overhaul Support Services, LLC against industry standards for specialized aerospace component overhauls. Benchmarking against contracts for other rotary-wing aircraft sustainment, even if not identical, could offer some insight into market rates for similar levels of complexity and technical skill.

What are the key performance indicators (KPIs) and deliverables expected under this contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. However, for an overhaul support services contract related to a weapon system like the UH-60 Black Hawk, typical KPIs would likely include turnaround time for overhauls, quality of work (e.g., defect rates, compliance with technical orders), adherence to schedule, and overall system performance post-overhaul. Deliverables would include the fully overhauled components, associated documentation (e.g., inspection reports, test results, certifications), and potentially warranty information. The contract's performance period (ending January 31, 2026) suggests a phased delivery of services over its duration.

What is the historical spending pattern for UH-60 Black Hawk overhaul services by the Department of the Army?

The provided data does not include historical spending patterns for UH-60 Black Hawk overhaul services. To analyze this, one would need to access historical contract databases (like FPDS or SAM.gov) and search for previous contracts awarded for similar services, specifically for the UH-60 platform, by the Department of the Army or Department of Defense. This would involve looking at the total amount spent over previous years, the number of contracts awarded, the types of contracts (e.g., IDIQ, fixed-price), and the contractors who previously held these awards. Understanding historical spending can reveal trends in demand, pricing, and contractor concentration.

What is the track record of Overhaul Support Services, LLC in performing similar defense contracts?

The provided data does not offer details on the track record of Overhaul Support Services, LLC. To assess their performance history, one would need to research their past contract awards, including contract values, performance periods, agencies served, and any available performance evaluations or past performance questionnaires. Databases like SAM.gov or FPDS can provide this information. It would be important to look for contracts involving similar types of equipment (e.g., aviation components, complex machinery) and services (e.g., overhaul, repair, maintenance) to gauge their experience and reliability in fulfilling defense requirements.

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

Address: 5 CONNECTICUT SOUTH DR, EAST GRANBY, CT, 06026

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,397,007

Exercised Options: $5,397,007

Current Obligation: $5,397,007

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W58RGZ23D0070

IDV Type: IDC

Timeline