DoD Awards $44.3M for Future Team Support and Electrical Power Systems to Sikorsky Aircraft Corporation

Contract Overview

Contract Amount: $44,346,824 ($44.3M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2021-03-22

End Date: 2026-07-31

Contract Duration: 1,957 days

Daily Burn Rate: $22.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: FUTURE TEAM SUPPORT AND ELECTRICAL POWER SYSTEM (EPS)

Place of Performance

Location: STRATFORD, GREATER BRIDGEPORT County, CONNECTICUT, 06615

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $44.3 million to SIKORSKY AIRCRAFT CORPORATION for work described as: FUTURE TEAM SUPPORT AND ELECTRICAL POWER SYSTEM (EPS) Key points: 1. Sikorsky Aircraft Corporation, a major defense contractor, secured this contract. 2. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 3. The award method was 'NOT COMPETED', raising potential competition concerns. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee contract type, combined with a lack of competition, makes it difficult to assess pricing effectiveness against market benchmarks. The awarded amount is significant for R&D in this specialized area.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for the research and development services.

Public Impact

Taxpayers may be paying a premium due to the sole-source nature of the award. The specific R&D focus could lead to advancements in military technology. Long contract duration (over 5 years) suggests a complex and ongoing project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Cost Plus Fixed Fee contract type
  • Potential for cost overruns

Positive Signals

  • Supports critical defense R&D
  • Awarded to established contractor

Sector Analysis

This contract is in the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but requires careful oversight due to its specialized nature and potential for cost escalation.

Small Business Impact

The contract was awarded to Sikorsky Aircraft Corporation, a large business. There is no indication of small business participation in this specific award, which is common for large sole-source R&D contracts.

Oversight & Accountability

The 'NOT COMPETED' status warrants close oversight to ensure the justification for sole-source procurement is valid and that costs are reasonable. The Cost Plus Fixed Fee structure requires diligent monitoring of expenditures.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Sole-source award
  • Cost Plus Fixed Fee contract type
  • Lack of transparency in pricing
  • Potential for cost overruns
  • Limited small business participation

Tags

research-and-development-in-the-physical, department-of-defense, ct, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.3 million to SIKORSKY AIRCRAFT CORPORATION. FUTURE TEAM SUPPORT AND ELECTRICAL POWER SYSTEM (EPS)

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 $44.3 million.

What is the period of performance?

Start: 2021-03-22. End: 2026-07-31.

What is the specific justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure cost reasonableness?

The justification for sole-source procurement typically involves unique capabilities, proprietary technology, or urgent needs that only one contractor can meet. Agencies must document these reasons thoroughly. Cost reasonableness is usually assessed through audits, benchmarking against similar R&D efforts if possible, and rigorous review of the contractor's proposed costs and fee structure.

What are the potential risks associated with a Cost Plus Fixed Fee contract for advanced R&D, particularly when not competed?

Cost Plus Fixed Fee contracts carry inherent risks of cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. Without competition, there's less incentive for the contractor to control costs aggressively. For advanced R&D, the scope can be uncertain, making it harder to define the 'fixed' fee accurately, potentially leading to contract modifications and increased overall expenditure.

How will the effectiveness and impact of the 'Future Team Support and Electrical Power System' R&D be measured and validated?

Effectiveness will likely be measured through defined milestones, technical performance metrics, and successful demonstration of the developed system. Validation may involve rigorous testing, peer review of research findings, and integration into existing or future platforms. The agency will need to establish clear criteria for success upfront and monitor progress against these benchmarks throughout the contract period.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911W620R0003

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

Financial Breakdown

Contract Ceiling: $48,998,165

Exercised Options: $48,093,759

Current Obligation: $44,346,824

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911W621D0001

IDV Type: IDC

Timeline

Start Date: 2021-03-22

Current End Date: 2026-07-31

Potential End Date: 2026-07-31 00:00:00

Last Modified: 2026-01-15

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