DoD Spends $23.6M on Black Hawk Rotor Blades, Sole-Sourced from Sikorsky

Contract Overview

Contract Amount: $23,654,021 ($23.7M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2017-05-12

End Date: 2021-01-31

Contract Duration: 1,360 days

Daily Burn Rate: $17.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ONE TIME BUY FOR THE PROCUREMENT OF 240 EACH BLADE ROTARY WINGS IN SUPPORT OF THE UH 60 BLACKHAWK WEAPON SYSTEM.

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: ONE TIME BUY FOR THE PROCUREMENT OF 240 EACH BLADE ROTARY WINGS IN SUPPORT OF THE UH 60 BLACKHAWK WEAPON SYSTEM. Key points: 1. Significant investment in critical helicopter component. 2. Sole-source procurement limits competitive pricing. 3. Potential for higher costs due to lack of competition. 4. Sector: Defense - Aircraft Parts Manufacturing.

Value Assessment

Rating: fair

The contract value of $23.6 million for 240 units suggests a per-unit cost of approximately $98,558. Benchmarking against similar specialized aerospace components is difficult without more data, but the sole-source nature raises concerns about optimal pricing.

Cost Per Unit: $98,558

Competition Analysis

Competition Level: sole-source

This procurement was not competed, indicating a sole-source award to Sikorsky Aircraft Corporation. This lack of competition likely resulted in less aggressive pricing and limited opportunities for alternative suppliers to offer potentially lower costs.

Taxpayer Impact: Taxpayers may have overpaid due to the absence of competitive bidding, as the government did not leverage market forces to secure the best possible price.

Public Impact

Ensures continued operational readiness of the UH-60 Black Hawk fleet. Supports a key defense contractor and its supply chain. Highlights reliance on specific manufacturers for critical military hardware.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Lack of price competition
Potential for cost overruns

Positive Signals

Supports critical defense asset
Ensures operational capability

Sector Analysis

This contract falls within the Defense sector, specifically for aircraft parts. Spending on specialized components like rotor blades for major weapon systems is common but often subject to limited competition due to proprietary technology or long-standing relationships.

Small Business Impact

The data indicates no specific set-aside for small businesses. The prime contractor, Sikorsky Aircraft Corporation, is a large aerospace manufacturer, suggesting that small businesses likely participated only as subcontractors within the supply chain.

Oversight & Accountability

The award was a delivery order under a larger contract, implying some level of pre-negotiation and oversight. However, the sole-source nature warrants scrutiny to ensure the price was fair and reasonable.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Sole-source award
Lack of competitive pricing
Potential for cost escalation
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to SIKORSKY AIRCRAFT CORPORATION. ONE TIME BUY FOR THE PROCUREMENT OF 240 EACH BLADE ROTARY WINGS IN SUPPORT OF THE UH 60 BLACKHAWK WEAPON SYSTEM.

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 $23.7 million.

What is the period of performance?

Start: 2017-05-12. End: 2021-01-31.

What was the justification for the sole-source award, and was a market research conducted to confirm no other viable suppliers existed?

The justification for a sole-source award is crucial for understanding the necessity of bypassing competition. Agencies typically conduct market research to determine if only one responsible source can provide the required supplies or services. Without this documentation, it's difficult to assess if the government truly exhausted all options for competitive pricing.

How does the per-unit cost of these rotor blades compare to historical data or industry benchmarks for similar components, considering the sole-source nature?

Comparing the per-unit cost of $98,558 requires access to proprietary pricing data or detailed industry benchmarks for specialized helicopter components. The sole-source award inherently makes such comparisons challenging, as competitive market pressures are absent. Any deviation from expected pricing should be rigorously investigated.

What is the long-term strategy for procuring these critical components to ensure future cost-effectiveness and supply chain resilience?

A long-term strategy is essential to mitigate the risks associated with sole-source procurement. This could involve exploring opportunities for future competition, developing alternative suppliers, or negotiating longer-term agreements with price adjustment clauses. Ensuring supply chain resilience for critical components like Black Hawk rotor blades is paramount for national security.

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: $23,654,021

Exercised Options: $23,654,021

Current Obligation: $23,654,021

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $5,040

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPE4AX15D9423

IDV Type: IDC

Timeline