DoD Awards $21.65M to Sikorsky for Unique Black Hawk Helicopter Modifications for Thailand Army

Contract Overview

Contract Amount: $21,650,000 ($21.6M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2023-11-16

End Date: 2027-12-31

Contract Duration: 1,506 days

Daily Burn Rate: $14.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UNIQUE MODIFICATION OF FOUR UH-60M BLACK HAWK HELICOPTERS TO SUPPORT THE ROYAL THAILAND ARMY (RTA)

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to SIKORSKY AIRCRAFT CORPORATION for work described as: UNIQUE MODIFICATION OF FOUR UH-60M BLACK HAWK HELICOPTERS TO SUPPORT THE ROYAL THAILAND ARMY (RTA) Key points: 1. High-value modification contract for specialized military aircraft. 2. Sole-source award to Sikorsky Aircraft Corporation, the original manufacturer. 3. Potential risk associated with unique modifications and foreign military sales. 4. Aircraft manufacturing sector, with a focus on rotorcraft.

Value Assessment

Rating: fair

The contract value of $21.65 million for four unique helicopter modifications appears reasonable given the specialized nature of the work. However, without detailed cost breakdowns or comparisons to similar unique modification efforts, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source to Sikorsky Aircraft Corporation, the original equipment manufacturer. This approach limits price discovery and competition, potentially leading to higher costs than if the modifications were competed.

Taxpayer Impact: Taxpayer funds are being used for a foreign military sale, impacting the overall defense budget. The lack of competition may result in a less efficient use of these funds.

Public Impact

Enhances the capabilities of a key U.S. ally, supporting regional security. Directly benefits Sikorsky Aircraft Corporation and its supply chain. Represents a specialized application of advanced aerospace technology. Potential for follow-on support and sustainment contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Unique modifications may present unforeseen technical challenges.
Foreign military sales can involve complex logistical and political considerations.

Positive Signals

Supports a critical U.S. ally's military modernization.
Leverages existing, proven Black Hawk helicopter platform.
Contract awarded to a reputable and experienced manufacturer.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on rotorcraft modifications. Spending benchmarks for such specialized, sole-source modifications are difficult to establish due to their unique nature.

Small Business Impact

The contract was awarded directly to Sikorsky Aircraft Corporation, a large business. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The Department of the Army is the contracting activity. Oversight will focus on ensuring the unique modifications meet technical specifications and delivery timelines, especially given the foreign military sales aspect.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award
Unique modifications
Foreign military sales complexity
Potential for cost overruns on unique modifications

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to SIKORSKY AIRCRAFT CORPORATION. UNIQUE MODIFICATION OF FOUR UH-60M BLACK HAWK HELICOPTERS TO SUPPORT THE ROYAL THAILAND ARMY (RTA)

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 $21.6 million.

What is the period of performance?

Start: 2023-11-16. End: 2027-12-31.

What is the specific technical justification for the unique modifications required by the Royal Thailand Army, and how do these modifications enhance operational capabilities?

The specific technical justification for the unique modifications is not detailed in the provided data. However, such modifications typically aim to adapt the UH-60M Black Hawk's capabilities to meet specific environmental, operational, or mission requirements of the end-user. This could include enhanced avionics, specialized sensor integration, or structural reinforcements for particular mission profiles, ultimately improving the RTA's operational effectiveness in their designated roles.

Given the sole-source nature of this award, what measures are in place to ensure the government receives fair value for the $21.65 million expenditure?

While sole-source awards inherently limit competitive price discovery, the government likely relies on pre-negotiated rates, historical pricing data for similar modifications (if available), and rigorous technical evaluation to ensure the proposed cost is reasonable. The contracting officer must still justify the price as fair and reasonable based on available information, potentially through independent cost estimates or benchmarking against commercial equivalents where applicable.

What are the potential risks associated with modifying a standard military platform for a foreign partner, particularly concerning long-term sustainment and interoperability?

Risks include potential difficulties in long-term sustainment if unique parts or expertise are required, which may not be readily available through standard supply chains. Interoperability with other allied forces or U.S. assets could also be affected if modifications deviate significantly from established standards. Furthermore, geopolitical shifts could impact ongoing support agreements or the platform's future operational relevance for the RTA.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $21,650,000

Exercised Options: $21,650,000

Current Obligation: $21,650,000

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $281,853

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline