Department of the Army awards $26.1M contract for aircraft parts to Sikorsky Aircraft Corporation

Contract Overview

Contract Amount: $26,119,473 ($26.1M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2025-12-18

End Date: 2027-12-24

Contract Duration: 736 days

Daily Burn Rate: $35.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UES II KITS

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $26.1 million to SIKORSKY AIRCRAFT CORPORATION for work described as: UES II KITS Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract duration of over two years suggests a need for sustained supply of these aircraft parts. 3. The specific nature of 'UES II KITS' implies specialized components critical for aircraft maintenance or upgrades. 4. Sikorsky Aircraft Corporation, as the awardee, likely possesses unique capabilities or existing integration for these parts. 5. The fixed-price contract type offers some cost certainty, but the lack of competition limits benchmarking. 6. The award is a delivery order under a larger contract vehicle, indicating a phased procurement approach.

Value Assessment

Rating: fair

Without competitive bids, it is difficult to definitively assess the value for money. The fixed-price nature provides some predictability, but the absence of multiple offers means the government could not leverage market forces to secure the best possible pricing. Benchmarking against similar sole-source awards for specialized aircraft components would be necessary for a more thorough evaluation. The total award amount of over $26 million over two years warrants careful scrutiny of the unit costs and overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Sikorsky Aircraft Corporation, was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for unique capabilities or existing systems, they inherently limit price discovery and may result in higher costs for the government compared to a fully competed procurement.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution. Without competing offers, there is less pressure on the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are the Department of the Army, ensuring the continued operational readiness of its aircraft fleet. The services delivered involve the provision of specialized aircraft parts, likely critical for maintenance, repair, and overhaul (MRO) activities. The geographic impact is primarily within the United States, supporting military aviation operations. Workforce implications may include continued employment for specialized manufacturing and logistics personnel at Sikorsky Aircraft Corporation and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Potential for cost overruns if pricing is not rigorously managed without competition.

Positive Signals

Award to an established contractor (Sikorsky) suggests reliability and potential for quality.
Fixed-price contract provides cost certainty for the awarded amount.
Delivery order structure allows for phased acquisition and management of funds.

Sector Analysis

The aerospace and defense sector is characterized by high barriers to entry, complex supply chains, and significant R&D investment. Contracts for specialized aircraft parts, like the UES II KITS, are crucial for maintaining the operational readiness of military fleets. Spending in this sub-sector often involves long-term sustainment contracts due to the specialized nature of the equipment and the need for interoperability. Comparable spending benchmarks are difficult to establish without detailed knowledge of the specific kits, but large-scale sustainment contracts for military aircraft can run into hundreds of millions or billions of dollars.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large prime contractor like Sikorsky Aircraft Corporation suggests that the primary focus is on specialized manufacturing capabilities. While the prime contractor may engage small businesses in its supply chain, the direct impact on the small business ecosystem from this specific award is likely limited unless subcontracting plans are mandated and actively pursued.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the fixed-price contract type, which obligates the contractor to deliver specified goods. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Aircraft Parts and Auxiliary Equipment Manufacturing
Military Aircraft Sustainment
Defense Logistics and Maintenance
Specialized Component Procurement

Risk Flags

Sole-source award
Lack of competitive benchmarking
Potential for higher costs
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to SIKORSKY AIRCRAFT CORPORATION. UES II KITS

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 $26.1 million.

What is the period of performance?

Start: 2025-12-18. End: 2027-12-24.

What is the specific nature and function of the 'UES II KITS' being procured?

The provided data does not specify the exact nature or function of the 'UES II KITS'. However, given the contractor (Sikorsky Aircraft Corporation) and the awarding agency (Department of the Army), it is highly probable that these kits are specialized components essential for the maintenance, repair, overhaul, or upgrade of specific military aircraft platforms operated by the Army. These could range from engine components, avionics modules, structural parts, or integrated systems designed for particular helicopter or fixed-wing aircraft models. The 'UES II' designation might refer to a specific system or upgrade phase, indicating a critical and potentially proprietary nature of the parts.

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

The provided data indicates the contract was awarded as 'NOT COMPETED' (CT), implying a sole-source justification. Common reasons for sole-source awards in defense contracting include unique capabilities possessed by only one source, proprietary technology, urgent and compelling needs where competition is not feasible, or when the item is a follow-on to a previously competed contract where only the original source can provide necessary compatibility or integration. Without further details on the specific justification document (e.g., Justification and Approval - J&A), it is impossible to determine the precise rationale. However, for specialized aircraft parts, it often relates to ensuring airworthiness, maintaining system integrity, or leveraging existing technical data and support infrastructure.

How does the $26.1 million award compare to historical spending on similar aircraft parts by the Department of the Army?

The provided data does not include historical spending figures for similar aircraft parts, making a direct comparison impossible. However, the $26.1 million award over approximately two years (from late 2025 to late 2027) represents a significant investment. To benchmark this spending, one would need to analyze historical contract awards for sustainment, spare parts, or upgrade kits for the specific aircraft platforms the UES II KITS are intended for. Analyzing trends in average award values, contract durations, and pricing structures for comparable sole-source or competed contracts within the Army's aviation portfolio would provide context. Without this comparative data, assessing whether this award is high, low, or average is speculative.

What are the potential risks associated with a sole-source award for critical aircraft components?

The primary risk associated with a sole-source award for critical aircraft components is the potential for inflated pricing due to the lack of competition. Without competing bids, the government loses the opportunity to leverage market forces to secure the best possible value. Other risks include reduced innovation, potential complacency from the sole provider regarding quality or delivery schedules, and a lack of flexibility if the contractor's circumstances change (e.g., financial instability, production issues). Furthermore, sole-source awards can create long-term dependencies on a single supplier, potentially limiting future procurement options and increasing long-term sustainment costs.

What is Sikorsky Aircraft Corporation's track record with the Department of the Army for similar contracts?

Sikorsky Aircraft Corporation, a subsidiary of Lockheed Martin, has a long and extensive history of providing aircraft, components, and support services to the Department of the Army. They are a major manufacturer of military helicopters, including the UH-60 Black Hawk and CH-53 series. Their track record typically involves large-scale production, sustainment, and upgrade programs. While specific details on past awards for 'UES II KITS' are not provided, Sikorsky is generally considered a reliable, albeit high-cost, supplier for complex military aviation systems. Their performance on previous contracts would likely be evaluated based on delivery timeliness, quality, and adherence to specifications.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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: $26,119,473

Exercised Options: $26,119,473

Current Obligation: $26,119,473

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W58RGZ25D0017

IDV Type: IDC

Timeline