DoD Awards $63.9M for Rotary Wing Blades, Sole-Sourced to Sikorsky Aircraft Corporation
Contract Overview
Contract Amount: $63,917,000 ($63.9M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2016-09-27
End Date: 2020-02-17
Contract Duration: 1,238 days
Daily Burn Rate: $51.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NOUN: BLADE, ROTARY WING NSN:1615015461148 PN: 70150-09200-041
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $63.9 million to SIKORSKY AIRCRAFT CORPORATION for work described as: NOUN: BLADE, ROTARY WING NSN:1615015461148 PN: 70150-09200-041 Key points: 1. Significant award for critical aircraft components. 2. Sole-source award raises questions about price discovery and competition. 3. Long contract duration (1238 days) may impact price volatility. 4. Awarded by Defense Logistics Agency, supporting broader DoD operations.
Value Assessment
Rating: questionable
The award amount of $63.9M for 1 unit over 1238 days suggests a high per-unit cost. Without comparable contracts or detailed cost breakdowns, it's difficult to assess if this price is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source procurement. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these rotary wing blades.
Public Impact
Ensures continued operational readiness for rotary wing aircraft. Potential for higher costs due to lack of competitive bidding. Supports a key defense contractor, Sikorsky Aircraft Corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High potential per-unit cost
Positive Signals
- Critical component for aircraft maintenance
- Supports DoD operational readiness
Sector Analysis
This award falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this sector is crucial for maintaining military aviation fleets. Benchmarks for similar sole-source awards are needed for better cost assessment.
Small Business Impact
This 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 sole-source procurements of specialized components.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost overruns. The Defense Logistics Agency should have robust internal controls in place.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- Potential for cost overruns due to sole-source nature.
- Long contract duration increases exposure to market volatility.
- Limited transparency on cost justification.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $63.9 million to SIKORSKY AIRCRAFT CORPORATION. NOUN: BLADE, ROTARY WING NSN:1615015461148 PN: 70150-09200-041
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 $63.9 million.
What is the period of performance?
Start: 2016-09-27. End: 2020-02-17.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's unclear if alternatives were explored. A thorough review would confirm if competition was truly impossible or if other avenues were overlooked, impacting potential cost savings.
How does the awarded price compare to historical pricing for similar rotary wing blades, considering inflation and technological advancements?
Comparing the $63.9M award to historical data is challenging without access to specific contract details and market research. Factors like inflation, material costs, and any design modifications influence price. A detailed cost analysis or benchmarking against similar sole-source awards would be necessary to determine if the price is reasonable and reflects fair market value.
What mechanisms are in place to ensure the quality and timely delivery of these critical components under a long-term, sole-source contract?
Quality assurance and delivery schedules are typically managed through contract clauses, performance metrics, and regular inspections. For sole-source contracts, the government often relies on the contractor's established quality systems. Oversight by the Defense Logistics Agency is crucial to monitor progress, address any potential delays, and ensure the components meet stringent military specifications.
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: Lockheed Martin Corp (UEI: 834951691)
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: $63,917,000
Exercised Options: $63,917,000
Current Obligation: $63,917,000
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $54,076
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPE4AX15D9423
IDV Type: IDC
Timeline
Start Date: 2016-09-27
Current End Date: 2020-02-17
Potential End Date: 2020-02-17 12:02:00
Last Modified: 2018-12-02
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