DoD's $23.7M R&D Contract for Turbine Engine Integration Awarded to Sikorsky Aircraft Corporation

Contract Overview

Contract Amount: $23,692,019 ($23.7M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2019-09-11

End Date: 2025-09-08

Contract Duration: 2,189 days

Daily Burn Rate: $10.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: PH I INTEGRATION IMPROVED TURBINE ENGINE

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $23.7 million to SIKORSKY AIRCRAFT CORPORATION for work described as: PH I INTEGRATION IMPROVED TURBINE ENGINE Key points: 1. The contract focuses on research and development in physical, engineering, and life sciences. 2. Sikorsky Aircraft Corporation is the sole awardee, indicating a potential lack of competition. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The R&D nature suggests innovation but also inherent risks in achieving desired outcomes.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee contract type, while common for R&D, offers less price certainty than fixed-price contracts. Benchmarking is difficult without specific cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for this $23.7 million contract may result in taxpayers paying more than if multiple vendors had vied for the work.

Public Impact

Advancement in turbine engine technology could have significant implications for defense capabilities. The R&D focus means the ultimate success and applicability of the integration are not guaranteed. Taxpayers are funding early-stage research with potential long-term benefits but also inherent risks. The contract duration extends over several years, requiring sustained oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost Plus Fixed Fee contract type carries risk of cost overruns.
R&D projects have inherent uncertainty in outcomes.
No small business participation noted.

Positive Signals

Potential for technological advancement in turbine engines.
Contract awarded to a known entity in the aerospace industry.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for innovation but requires careful management due to its inherent risks and long-term horizons.

Small Business Impact

There is no indication of small business participation in this contract. Efforts should be made to ensure small businesses have opportunities in future related procurements.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is critical given the sole-source nature and cost-plus contract type to ensure value for money.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of competition
No small business participation
R&D inherent uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to SIKORSKY AIRCRAFT CORPORATION. PH I INTEGRATION IMPROVED TURBINE ENGINE

Who is the contractor on this award?

The obligated recipient is SIKORSKY AIRCRAFT CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $23.7 million.

What is the period of performance?

Start: 2019-09-11. End: 2025-09-08.

What specific technological advancements are expected from this turbine engine integration, and how will their success be measured?

The specific technological advancements are not detailed in the provided data. Success measurement would typically involve defined milestones, performance metrics, and testing protocols outlined in the contract's Statement of Work. The R&D nature implies that success might be defined by achieving certain technical capabilities or demonstrating proof-of-concept rather than a fully operational system.

Given the sole-source award, what steps are being taken to mitigate the risk of inflated pricing and ensure fair value?

Mitigation strategies for sole-source awards often include rigorous cost analysis by the contracting agency, negotiation of fair and reasonable prices based on historical data or independent cost estimates, and potentially requiring detailed cost breakdowns from the contractor. The Cost Plus Fixed Fee structure also includes a fixed fee component that is negotiated upfront, providing some level of cost control.

How does this R&D investment align with broader DoD strategic goals for engine technology, and what is the anticipated return on investment?

The alignment with broader DoD strategic goals would depend on the specific research objectives and the anticipated capabilities the integrated turbine engine will provide. The return on investment for R&D is often measured in terms of enhanced national security, technological superiority, and potential future cost savings through improved efficiency or reduced maintenance, though these are long-term and not always quantifiable at the outset.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,735,168

Exercised Options: $23,692,019

Current Obligation: $23,692,019

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $2,372,934

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911W614D0002

IDV Type: IDC

Timeline