DoD awards $11.7M contract for UH-60 helicopter blade overhaul, raising questions about competition

Contract Overview

Contract Amount: $11,691,122 ($11.7M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2024-07-10

End Date: 2026-10-31

Contract Duration: 843 days

Daily Burn Rate: $13.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FIRM FIXED PRICE CONTRACT FOR THE OVERHAUL OF THE BLADE, ROTARY WING CAT II AND CAT III IN SUPPORT OF THE UH-60 HELICOPTER AIRCRAFT.

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to SIKORSKY AIRCRAFT CORPORATION for work described as: FIRM FIXED PRICE CONTRACT FOR THE OVERHAUL OF THE BLADE, ROTARY WING CAT II AND CAT III IN SUPPORT OF THE UH-60 HELICOPTER AIRCRAFT. Key points: 1. Contract awarded for critical UH-60 helicopter component maintenance. 2. Sole-source award limits potential for competitive pricing. 3. Long contract duration may indicate complex or ongoing needs. 4. Focus on a specific aircraft part suggests specialized maintenance requirements. 5. Geographic concentration of the contractor in Connecticut. 6. Lack of competition raises concerns about value for taxpayer money.

Value Assessment

Rating: questionable

The contract value of $11.7 million for overhauling helicopter blades is significant. Without competitive bidding, it is difficult to benchmark this price against market rates or similar contracts. The firm-fixed-price structure provides cost certainty for the government, but the absence of competition means the government may not be achieving the best possible price. Further analysis would be needed to compare the scope of work and unit costs to industry standards for similar helicopter component overhauls.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Sikorsky Aircraft Corporation, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they generally lead to less price discovery and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: The lack of competition means taxpayers may not be benefiting from the cost savings that could arise from a bidding process. Without competing offers, the government is reliant on the sole provider's pricing, which may not reflect the most economical option available.

Public Impact

The primary beneficiaries are the U.S. Army units operating the UH-60 Black Hawk helicopters, ensuring their continued operational readiness. The contract delivers essential maintenance and overhaul services for critical rotary-wing components, specifically the blades. The geographic impact is primarily centered around the contractor's facility in Connecticut, where the overhaul work will likely be performed. This contract supports specialized technical jobs within the aerospace maintenance sector, particularly those with expertise in rotary-wing aircraft.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the procurement process due to non-competitive nature.
Potential for vendor lock-in if Sikorsky is the only entity capable of performing this specific overhaul.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Focus on critical components ensures continued operational capability of essential military aircraft.
Contract awarded to a known entity with likely specialized expertise in UH-60 components.

Sector Analysis

This contract falls within the broader aerospace manufacturing and maintenance sector, specifically focusing on aircraft parts and auxiliary equipment. The market for helicopter maintenance and overhaul is specialized, often dominated by original equipment manufacturers (OEMs) or authorized service centers due to proprietary knowledge and tooling. The total addressable market for military helicopter MRO (Maintenance, Repair, and Overhaul) is substantial, driven by the extensive fleets operated by various defense agencies worldwide. This specific contract addresses a niche but critical need within the larger defense aviation ecosystem.

Small Business Impact

This contract does not appear to involve small business set-asides, as indicated by the 'sb' field being false. Furthermore, the 'ss' field is also false, suggesting no specific small business subcontracting goals were mandated within this award. The sole-source nature of the award to a large corporation like Sikorsky Aircraft Corporation limits opportunities for small businesses to participate directly or indirectly through subcontracting on this particular contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a firm-fixed-price contract, the government's primary oversight will focus on ensuring the contractor meets the defined specifications and delivery schedules. Transparency is limited due to the sole-source nature. Inspector General (IG) jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

UH-60 Black Hawk Helicopter Sustainment
Rotary Wing Aircraft Maintenance
Aerospace Component Overhaul Services
Department of Defense Aviation Procurement

Risk Flags

Sole-source procurement
Lack of competitive bidding
Potential for inflated pricing
Limited transparency in award process

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to SIKORSKY AIRCRAFT CORPORATION. FIRM FIXED PRICE CONTRACT FOR THE OVERHAUL OF THE BLADE, ROTARY WING CAT II AND CAT III IN SUPPORT OF THE UH-60 HELICOPTER AIRCRAFT.

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 $11.7 million.

What is the period of performance?

Start: 2024-07-10. End: 2026-10-31.

What is Sikorsky Aircraft Corporation's track record with similar UH-60 component overhaul contracts?

Sikorsky Aircraft Corporation, as the original equipment manufacturer (OEM) for the UH-60 Black Hawk helicopter, possesses extensive experience and a well-established track record in maintaining and overhauling its components. They have historically been the primary provider of such services due to their proprietary knowledge, specialized tooling, and engineering expertise. Analyzing past performance data, including delivery times, quality metrics, and any prior issues or disputes on similar contracts, would provide a clearer picture of their reliability and efficiency in performing this specific type of blade overhaul. Publicly available contract databases and performance reports (like CPARS) could offer insights, though specific details on sole-source awards might be less granular.

How does the $11.7 million contract value compare to historical spending on UH-60 blade overhauls?

Directly comparing the $11.7 million contract value to historical spending on UH-60 blade overhauls is challenging without more specific data on the quantity of blades, the scope of work included in previous contracts, and the contract type. Since this is a sole-source award, it may not reflect competitive market pricing. Historical data from competitively bid contracts for similar services, or data from other branches of the military using the UH-60, could serve as a benchmark. However, inflation, changes in technology, and evolving maintenance requirements can also influence costs over time. A detailed cost analysis comparing the per-blade overhaul cost within this contract against historical averages, adjusted for these factors, would be necessary for a robust comparison.

What are the primary risks associated with this sole-source contract for blade overhauls?

The primary risks associated with this sole-source contract are centered around cost and competition. Without competitive bidding, there is a heightened risk that the government is paying a premium price, as Sikorsky Aircraft Corporation faces less pressure to offer the most cost-effective solution. Another risk is potential vendor lock-in; if Sikorsky is the only entity with the necessary certifications, tooling, and expertise, the Army may be dependent on them for future overhauls, potentially limiting future negotiation leverage. Furthermore, a sole-source award can sometimes indicate a lack of readily available alternative providers, which could pose a risk to supply chain resilience if unforeseen issues arise with Sikorsky's capacity or operations.

What is the expected impact of this contract on the operational readiness of the UH-60 fleet?

This contract is expected to have a positive impact on the operational readiness of the UH-60 fleet by ensuring that critical blade components receive necessary overhaul and maintenance. The UH-60 Black Hawk is a workhorse helicopter for the U.S. Army, and its blades are subject to significant stress and wear. Regular, high-quality overhauls are essential to prevent component failure, maintain flight safety, and ensure the aircraft can perform its missions effectively. By securing these services through a dedicated contract, the Army aims to maintain a sufficient stock of serviceable blades, thereby minimizing downtime for aircraft undergoing maintenance and maximizing fleet availability for training and operational deployments.

Are there any alternative providers for UH-60 blade overhauls, and why was this contract sole-sourced?

The justification for awarding this contract sole-source to Sikorsky Aircraft Corporation likely stems from their status as the Original Equipment Manufacturer (OEM) for the UH-60 Black Hawk. OEMs typically possess unique technical data, proprietary tooling, specialized repair processes, and certifications required for the overhaul of critical components like rotor blades. While third-party MRO (Maintenance, Repair, and Overhaul) providers may exist, they often require licensing, data packages, or specific training from the OEM, which can be costly and time-consuming. The Army may have determined that Sikorsky was the only source capable of performing the overhaul to the required military specifications within the necessary timeframe, or that pursuing competition would be impractical or not in the government's best interest due to specialized 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

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: $11,691,122

Exercised Options: $11,691,122

Current Obligation: $11,691,122

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