DoD's $28.8M Boeing Sikorsky contract for aircraft parts and repairs was not competed, raising value concerns

Contract Overview

Contract Amount: $28,856,413 ($28.9M)

Contractor: Boeing Sikorsky Aircraft Support, LLC

Awarding Agency: Department of Defense

Start Date: 2013-06-27

End Date: 2014-12-31

Contract Duration: 552 days

Daily Burn Rate: $52.3K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PARTS/REPAIRS

Place of Performance

Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $28.9 million to BOEING SIKORSKY AIRCRAFT SUPPORT, LLC for work described as: PARTS/REPAIRS Key points: 1. The contract's value for parts and repairs appears high given the lack of competition. 2. Sole-source awards can limit price discovery and potentially lead to inflated costs. 3. The duration of the contract (over 1.5 years) suggests a sustained need for these services. 4. Performance context is limited without details on the specific aircraft or parts involved. 5. This contract falls under 'Other Support Activities for Air Transportation' within the Defense sector. 6. The absence of a small business set-aside indicates a focus on large prime contractors.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without specific details on the parts and repairs provided. However, the $28.8 million awarded for a 1.5-year period for 'PARTS/REPAIRS' to a single supplier, Boeing Sikorsky Aircraft Support, LLC, warrants scrutiny. Given the lack of competition, it is difficult to ascertain if the pricing reflects fair market value or if taxpayers received the best possible deal. Similar contracts for aircraft maintenance and parts often involve competitive bidding to ensure cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, often due to proprietary technology, unique capabilities, or urgent needs. The lack of competition means that Boeing Sikorsky Aircraft Support, LLC was the only entity considered, limiting the government's ability to solicit and evaluate offers from other potential suppliers.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's leverage in negotiating favorable terms and pricing.

Public Impact

The U.S. Special Operations Command benefits from the continued operational readiness of its aircraft fleet. Essential parts and repair services are delivered to maintain critical aviation assets. The geographic impact is primarily within the operational theaters where these aircraft are deployed. The contract supports specialized aviation maintenance personnel, likely employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Limited transparency into the specific parts and repair services procured.
Potential for vendor lock-in due to sole-source nature of the award.

Positive Signals

Ensures continued operational readiness of critical U.S. Special Operations Command aircraft.
Awarded to a known and experienced aerospace manufacturer (Boeing Sikorsky).
Contract duration suggests a stable and predictable support arrangement.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft parts and repair services. The market for such services is dominated by major aerospace manufacturers and specialized maintenance providers. Spending in this area is critical for maintaining the operational readiness of military aviation assets. Comparable spending benchmarks would typically involve analyzing other contracts for similar aircraft types and support services, ideally those awarded through competitive processes.

Small Business Impact

The contract was not competed and there is no indication of a small business set-aside. This suggests that the primary contractor, Boeing Sikorsky Aircraft Support, LLC, is a large business. There is no explicit information on subcontracting plans for small businesses within this award, which could represent a missed opportunity to engage the small business ecosystem in supporting these critical aviation needs.

Oversight & Accountability

Oversight for this contract would fall under the Department of Defense's contracting and procurement regulations, managed by the U.S. Special Operations Command. Accountability measures would include contract performance reviews, delivery schedules, and quality control for parts and repairs. Transparency is limited due to the sole-source nature and the specific details of the services provided not being publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Maintenance Services
Aerospace Parts Procurement
Defense Logistics Support
Special Operations Forces Equipment Sustainment

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency on scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.9 million to BOEING SIKORSKY AIRCRAFT SUPPORT, LLC. PARTS/REPAIRS

Who is the contractor on this award?

The obligated recipient is BOEING SIKORSKY AIRCRAFT SUPPORT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $28.9 million.

What is the period of performance?

Start: 2013-06-27. End: 2014-12-31.

What specific aircraft models and types of parts/repairs are covered under this contract?

The provided data does not specify the exact aircraft models or the precise nature of the 'PARTS/REPAIRS' covered by this contract. It is identified under the Product Service Code (PSC) '488190', which broadly covers 'Other Support Activities for Air Transportation'. This lack of specificity makes it difficult to conduct a granular analysis of value for money or to compare it against highly similar, specialized repair contracts. Further details would be required from the contracting agency (U.S. Special Operations Command) to understand the scope of work, such as whether it pertains to engines, airframes, avionics, or routine maintenance versus major overhauls.

Why was this contract awarded on a sole-source basis instead of being competed?

The contract was designated as 'NOT COMPETED', indicating a sole-source award. While the specific justification is not provided in the abbreviated data, common reasons for sole-source awards in defense contracting include situations where only one responsible source can provide the required supplies or services. This could be due to proprietary technology, unique manufacturing capabilities held exclusively by Boeing Sikorsky Aircraft Support, LLC, or potentially urgent and compelling circumstances where competition is not feasible. Without the official justification document (e.g., a Justification and Approval for Other Than Full and Open Competition), the precise rationale remains speculative.

How does the contract's total award amount compare to similar aircraft parts and repair contracts within the DoD?

Direct comparison of the $28.8 million award is difficult without knowing the specific aircraft and complexity of repairs. However, for a period of approximately 1.5 years (June 2013 - December 2014), this represents a significant investment. Competitive contracts for similar broad categories of aircraft sustainment often range widely, but a lack of competition for this amount suggests potential for higher unit costs than might be achieved through a bidding process. Analyzing historical spending patterns for Boeing Sikorsky's support contracts for similar platforms, especially those that *were* competed, would provide a more robust benchmark.

What are the potential risks associated with a sole-source contract of this magnitude?

The primary risk associated with a sole-source contract of this magnitude is the potential for inflated pricing due to the absence of competitive pressure. Without competing offers, the government may not achieve the best possible value for its expenditure. Other risks include reduced innovation, as the contractor may have less incentive to propose cost-saving efficiencies, and potential vendor lock-in, making it difficult or costly to switch providers in the future. There's also a risk of complacency in performance if the contractor feels assured of future awards without needing to consistently demonstrate superior value.

What is Boeing Sikorsky Aircraft Support, LLC's track record with the U.S. Special Operations Command and the DoD?

Boeing Sikorsky Aircraft Support, LLC, is a well-established entity within the aerospace and defense industry, known for manufacturing and supporting various aircraft platforms, including those used by military branches. Their track record with the U.S. Special Operations Command (SOCOM) and the broader Department of Defense (DoD) likely includes numerous contracts for aircraft production, maintenance, repair, and logistical support. Given their position as a major defense contractor, they possess significant experience and established relationships. However, the specific performance history on this particular sole-source contract, including adherence to schedule, quality of work, and cost management, would require deeper investigation beyond the basic award data.

What are the implications of this contract's duration and value on future spending for similar services?

The contract's duration of approximately 1.5 years and its value of $28.8 million suggest a substantial and ongoing requirement for aircraft parts and repairs by SOCOM. This could indicate a pattern of reliance on Boeing Sikorsky for sustainment of specific platforms. If these services are critical and unique to Boeing Sikorsky's offerings, future spending may continue to be directed towards them, potentially through similar sole-source mechanisms unless a strategic decision is made to pursue competitive procurement for future requirements. This award sets a precedent for the level of investment required for such support.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: H9224111R0003

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Boeing Company (UEI: 009256819)

Address: 7244B NIGHTSTALKER WAY, FORT CAMPBELL, KY, 42223

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,856,413

Exercised Options: $28,856,413

Current Obligation: $28,856,413

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9224113D0007

IDV Type: IDC

Timeline