DoD spent over $42.8M on main rotor blades, with Sikorsky Aircraft Corporation as the sole provider

Contract Overview

Contract Amount: $42,820,123 ($42.8M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2012-09-19

End Date: 2016-04-20

Contract Duration: 1,309 days

Daily Burn Rate: $32.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MAIN ROTOR BLADES

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $42.8 million to SIKORSKY AIRCRAFT CORPORATION for work described as: MAIN ROTOR BLADES Key points: 1. The contract awarded to Sikorsky Aircraft Corporation for main rotor blades represents a significant investment in aviation sustainment. 2. The sole-source nature of this award raises questions about potential price inflation and limited market exploration. 3. A lack of competition may indicate unique technical requirements or a concentrated market for these specific parts. 4. The contract duration of over 3 years suggests a long-term need for these critical components. 5. Performance context is limited without specific delivery or quality metrics, but the duration implies consistent need. 6. This spending falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a niche but vital area for defense readiness.

Value Assessment

Rating: questionable

Benchmarking the value for these main rotor blades is challenging due to the sole-source award. Without competitive bids, it's difficult to ascertain if the $42.8 million price reflects fair market value or if taxpayers paid a premium. Comparing this to similar sole-source contracts for specialized aircraft parts would be necessary to provide a more definitive assessment of value for money. The absence of competition limits the ability to assess pricing efficiency.

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 is typically used when a specific product or service is available only from a single source, often due to proprietary technology, unique capabilities, or urgent needs where competition is not feasible. The lack of multiple bidders means there was no price discovery through a competitive process.

Taxpayer Impact: Taxpayers may have paid a higher price than in a competitive scenario. The absence of competition limits the government's leverage to negotiate favorable terms and potentially leads to less efficient use of public funds.

Public Impact

The Department of Defense benefits from the supply of critical main rotor blades, ensuring the operational readiness of its helicopter fleet. These rotor blades are essential components for maintaining aircraft safety and performance. The primary geographic impact is within the defense supply chain, supporting military operations globally. The contract supports jobs within Sikorsky Aircraft Corporation and its associated supply chain, particularly in Connecticut.

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 single-bidder solicitation.
Dependence on a single supplier could create supply chain risks.
Limited data on performance metrics makes it difficult to assess overall effectiveness.
Potential for cost overruns if not closely monitored due to lack of competitive pressure.

Positive Signals

Ensures supply of critical, specialized components for defense aircraft.
Sikorsky Aircraft Corporation is a known entity with established experience in rotorcraft manufacturing.
Contract duration suggests a stable, long-term need being met.
Firm Fixed Price contract type provides cost certainty for the government.

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a specialized segment of the aerospace industry. The market for specific helicopter rotor blades can be highly concentrated, often dominated by original equipment manufacturers like Sikorsky due to proprietary designs and manufacturing processes. Comparable spending benchmarks would involve analyzing other sole-source or limited-competition contracts for similar high-value, specialized aircraft components within the defense sector.

Small Business Impact

This contract does not appear to have a small business set-aside component, as it was awarded directly to Sikorsky Aircraft Corporation. There is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem is likely minimal for this specific award, as it focuses on a specialized component likely manufactured by the prime contractor or its direct, larger suppliers.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), responsible for monitoring performance, cost, and compliance. Transparency is limited due to the sole-source nature. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Department of Defense Aircraft Procurement
Defense Logistics Agency Aviation Support
Helicopter Component Manufacturing
Aerospace Parts Supply Chain

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.8 million to SIKORSKY AIRCRAFT CORPORATION. MAIN ROTOR BLADES

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 Logistics Agency).

What is the total obligated amount?

The obligated amount is $42.8 million.

What is the period of performance?

Start: 2012-09-19. End: 2016-04-20.

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

Sikorsky Aircraft Corporation, now a subsidiary of Lockheed Martin, has a long and established history of supplying helicopters and components, including rotor blades, to the Department of Defense. Their track record includes numerous contracts for various helicopter platforms, such as Black Hawks and Seahawks. While specific data on past rotor blade contracts is not detailed here, their extensive experience suggests a deep understanding of military aviation requirements. However, the sole-source nature of this particular $42.8 million award necessitates scrutiny to ensure that past performance is not being leveraged to justify non-competitive pricing. A review of historical contract awards and performance evaluations for Sikorsky's rotor blade provisions would be crucial for a comprehensive assessment.

How does the $42.8 million expenditure compare to other federal spending on aircraft parts?

The $42.8 million expenditure on main rotor blades by the Defense Logistics Agency is a significant but not extraordinary amount within the broader context of federal aircraft parts spending. The Department of Defense alone procures billions of dollars worth of aircraft parts annually, encompassing everything from engines and avionics to smaller components. This specific contract's value should be assessed relative to the type and quantity of rotor blades procured, as well as the complexity of their manufacturing. While $42.8 million is substantial, it represents a fraction of the total defense aviation budget. Benchmarking against other sole-source procurements of similar high-value, specialized components would provide a more accurate comparison of its relative cost-effectiveness.

What are the primary risks associated with a sole-source contract for critical aircraft components like main rotor blades?

The primary risks associated with a sole-source contract for critical aircraft components like main rotor blades include potential price inflation, reduced incentive for innovation, and supply chain vulnerability. Without competitive pressure, the sole provider may charge higher prices than would be achievable in a competitive market, leading to inefficient use of taxpayer funds. Furthermore, the lack of competition can stifle innovation as the contractor may have less incentive to invest in improving product design or manufacturing processes. Finally, relying on a single supplier creates a significant supply chain risk; any disruption to that supplier's operations, whether due to financial issues, natural disasters, or geopolitical factors, could severely impact the availability of essential parts and the readiness of military aircraft.

How effective is the Defense Logistics Agency in managing sole-source procurements for specialized parts?

The Defense Logistics Agency (DLA) is responsible for providing nearly all the logistics support for the U.S. military, including the procurement of a vast array of parts. Their effectiveness in managing sole-source procurements for specialized parts like main rotor blades hinges on robust internal processes for justifying sole-source awards, conducting thorough market research to confirm the necessity of a single source, and implementing stringent oversight mechanisms. DLA's success is often measured by its ability to secure fair and reasonable pricing even in non-competitive situations, ensure timely delivery, and maintain quality standards. While the DLA has established procedures, the inherent limitations of sole-source contracts mean that continuous vigilance, strong negotiation tactics, and independent cost analyses are crucial to mitigate risks and ensure program effectiveness.

What historical spending patterns exist for main rotor blades within the Department of Defense?

Historical spending patterns for main rotor blades within the Department of Defense reveal a consistent and significant demand driven by the operational needs of various helicopter fleets. This spending is often characterized by long-term contracts, given the lifespan of aircraft and the specialized nature of rotor blade manufacturing. Historically, such procurements have frequently involved sole-source or limited-competition awards, particularly for specific aircraft models where the original equipment manufacturer holds proprietary rights or unique expertise. While exact aggregate figures fluctuate based on modernization programs and operational tempo, the trend indicates sustained investment in ensuring the airworthiness and readiness of rotary-wing assets. Analyzing past spending data can highlight trends in pricing, contract durations, and the prevalence of competitive versus non-competitive awards for these critical components.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 6900 MAIN ST, STRATFORD, CT, 06614

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $42,820,123

Exercised Options: $42,820,123

Current Obligation: $42,820,123

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPM4AX12D9402

IDV Type: IDC

Timeline