DoD Spends $27.9M on UH-60 Blackhawk Rotary Wing Blades from Sikorsky Aircraft Corporation
Contract Overview
Contract Amount: $27,940,860 ($27.9M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2017-11-30
End Date: 2021-02-17
Contract Duration: 1,175 days
Daily Burn Rate: $23.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ROTARY WING BLADE NSN 1615-01-546-1148 FOR THE UH-60 BLACKHAWK
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $27.9 million to SIKORSKY AIRCRAFT CORPORATION for work described as: ROTARY WING BLADE NSN 1615-01-546-1148 FOR THE UH-60 BLACKHAWK Key points: 1. High value contract for critical helicopter components. 2. Sole-source award to Sikorsky Aircraft Corporation, raising competition concerns. 3. Significant taxpayer investment in aviation parts manufacturing. 4. Contract spans multiple years, indicating long-term need.
Value Assessment
Rating: fair
The contract value of $27.9M for rotary wing blades appears substantial. Without specific per-unit cost data or comparison to similar contracts for the UH-60 Blackhawk, it's difficult to definitively assess pricing efficiency. The firm fixed-price structure offers some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and potentially leads to higher costs for taxpayers as the government relies on a single supplier's pricing.
Taxpayer Impact: The sole-source nature of this award may result in a higher cost to taxpayers than if competitive bidding were employed.
Public Impact
Ensures continued operational readiness for the UH-60 Blackhawk fleet. Supports a key defense contractor and its manufacturing capabilities. Impacts the supply chain for critical aviation components. Potential for price increases due to lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of detailed cost breakdowns makes value assessment difficult.
- Long contract duration could mask inefficiencies.
Positive Signals
- Firm fixed-price contract provides cost predictability.
- Ensures supply of essential components for a vital military asset.
Sector Analysis
The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is crucial for defense readiness. Spending benchmarks for components like rotary wing blades are highly specific to the aircraft model and manufacturer, making broad comparisons challenging. This contract represents a significant investment within this specialized niche.
Small Business Impact
This contract was awarded directly to Sikorsky Aircraft Corporation, a large prime contractor. There is no indication that small businesses were involved as subcontractors or prime contractors in this specific award, suggesting limited small business participation.
Oversight & Accountability
The Department of Defense, specifically the Defense Logistics Agency, is responsible for this contract. Oversight would typically involve monitoring contract performance, delivery schedules, and adherence to the firm fixed-price terms. The sole-source nature warrants close scrutiny to ensure fair pricing.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source procurement limits competition.
- Lack of transparency in pricing justification.
- Potential for cost overruns without competitive pressure.
- Dependence on a single supplier for critical components.
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 $27.9 million to SIKORSKY AIRCRAFT CORPORATION. ROTARY WING BLADE NSN 1615-01-546-1148 FOR THE UH-60 BLACKHAWK
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 $27.9 million.
What is the period of performance?
Start: 2017-11-30. End: 2021-02-17.
What is the historical cost trend for these rotary wing blades under previous contracts, and how does the current pricing compare?
Analyzing historical cost data for these specific UH-60 Blackhawk rotary wing blades is crucial for assessing value. Without access to prior contract pricing and volume, it's challenging to determine if the current $27.9M award represents a fair market price or if it has escalated due to the sole-source nature. A trend analysis would reveal potential cost efficiencies or inflationary pressures over time.
What justification was provided for the sole-source award, and were alternative sourcing options explored?
The justification for a sole-source award is critical for understanding the procurement strategy and potential risks. If Sikorsky Aircraft Corporation is the only entity capable of producing these specific blades due to proprietary technology or unique specifications, that would be a key factor. However, the government should demonstrate that alternatives were thoroughly investigated to ensure the best value and competitive pricing were pursued.
How does the performance and reliability of these blades compare to industry standards or previous versions, and does this justify the cost?
Evaluating the performance and reliability of the rotary wing blades is essential for determining their effectiveness and justifying the expenditure. Data on Mean Time Between Failures (MTBF), operational lifespan, and any reported incidents would provide insight. If these blades offer superior performance or longevity compared to alternatives, it could partially offset the higher cost associated with a sole-source procurement.
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
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: $27,940,860
Exercised Options: $27,940,860
Current Obligation: $27,940,860
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $916,051
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: 2017-11-30
Current End Date: 2021-02-17
Potential End Date: 2021-02-17 12:02:00
Last Modified: 2019-07-25
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