Army Awards $112.6M for Turbine Engine Integration, Lacking Competition
Contract Overview
Contract Amount: $112,606,811 ($112.6M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2021-04-23
End Date: 2026-09-30
Contract Duration: 1,986 days
Daily Burn Rate: $56.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: PH 1.2 INTEGRATION IMPROVED TURBINE ENG
Place of Performance
Location: STRATFORD, GREATER BRIDGEPORT County, CONNECTICUT, 06615
Plain-Language Summary
Department of Defense obligated $112.6 million to SIKORSKY AIRCRAFT CORPORATION for work described as: PH 1.2 INTEGRATION IMPROVED TURBINE ENG Key points: 1. Significant investment in advanced turbine engine technology. 2. Sole-source award raises concerns about price discovery and value. 3. Long contract duration (2021-2026) suggests a complex, ongoing project. 4. Research and Development sector, potentially high-risk, high-reward.
Value Assessment
Rating: questionable
The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the fixed fee represents a fair price for the contractor's effort.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher cost to the government compared to a competitive process.
Taxpayer Impact: The lack of competition for an $112.6 million contract raises concerns about potential overspending of taxpayer funds.
Public Impact
Advancement in military aviation technology could enhance national security capabilities. Potential for innovation in turbine engine design and efficiency. Long-term commitment may indicate critical, specialized research needs. Lack of transparency in pricing due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
Positive Signals
- Focus on critical R&D
- Potential for technological advancement
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but often involves higher risk and less predictable outcomes than other sectors. Benchmarks are difficult without specific technology comparisons.
Small Business Impact
The data indicates this contract was awarded to Sikorsky Aircraft Corporation and does not specify any small business participation. Given the sole-source nature and large value, it's unlikely small businesses were significantly involved in the primary award.
Oversight & Accountability
The sole-source nature of this large contract warrants close oversight to ensure the government is receiving fair value and that the contractor is meeting all performance requirements within the agreed-upon fixed fee.
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
- Lack of competition may lead to inflated costs.
- Cost-plus contract type increases risk of cost overruns.
- Long contract duration could indicate potential for scope creep or delays.
- Limited transparency on specific technological advancements justifying sole-source.
Tags
research-and-development-in-the-physical, department-of-defense, ct, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $112.6 million to SIKORSKY AIRCRAFT CORPORATION. PH 1.2 INTEGRATION IMPROVED TURBINE ENG
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 $112.6 million.
What is the period of performance?
Start: 2021-04-23. End: 2026-09-30.
What specific technological advancements are expected from this turbine engine integration project, and how do they justify the sole-source award?
The specific advancements are not detailed in the provided data. However, sole-source awards are typically justified when only one source possesses the unique capability, technology, or security clearance required for a critical project. For this turbine engine integration, it might involve proprietary technology or highly specialized expertise held exclusively by Sikorsky Aircraft Corporation, deemed essential for national defense objectives.
What mechanisms are in place to control costs and ensure efficiency given the Cost Plus Fixed Fee (CPFF) contract type and lack of competition?
With a CPFF contract, the government reimburses the contractor's allowable costs plus a predetermined fixed fee. Oversight is critical, involving rigorous auditing of costs and performance monitoring. Mechanisms include detailed cost reporting, regular progress reviews, and potentially incentive clauses tied to performance or efficiency metrics, even in a sole-source scenario, to mitigate risks associated with cost escalation.
How will the effectiveness of the improved turbine engine be measured, and what are the key performance indicators (KPIs) for this R&D contract?
Effectiveness measurement for R&D contracts like this typically involves predefined technical performance metrics (TPMs) and milestones. KPIs might include improvements in thrust, fuel efficiency, durability, weight reduction, or specific operational capabilities. The contract's Statement of Work (SOW) would outline these KPIs, and progress would be assessed through testing, analysis, and demonstration phases to ensure the integration meets the Army's requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – 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: $112,606,811
Exercised Options: $112,606,811
Current Obligation: $112,606,811
Actual Outlays: $6,474,548
Subaward Activity
Number of Subawards: 34
Total Subaward Amount: $6,748,209
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: 2021-04-23
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-08-25
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