Boeing Sikorsky Aircraft Support contract for aircraft components and accessories awarded by DoD for over $269M

Contract Overview

Contract Amount: $26,939,900 ($26.9M)

Contractor: Boeing Sikorsky Aircraft Support, LLC

Awarding Agency: Department of Defense

Start Date: 2004-01-01

End Date: 2010-09-23

Contract Duration: 2,457 days

Daily Burn Rate: $11.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: 200408!000078!9700!H92241!USSOCOM, TAKO CONTRACTING DIV. !USZA9503D0012 !A!N! !N!0004 ! !20040101!20041231!807454418!807454418!963957972!N!BOEING SIKORSKY AIRCRAFT SUPPO!7281 NIGHTSTALKER WAY !FORT CAMPBELL !KY!42223!28486!047!21!FORT CAMPBELL NORTH !CHRISTIAN !KENTUCKY !+000005544584!N!N!000000000000!J016!MAINT & REPAIR OF EQ/AIRCRAFT COMPS & ACCYS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !541330!E! !5!B!S! ! !D!20050131!B! ! !A! !D!N!S!1!001!N!1G!C!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $26.9 million to BOEING SIKORSKY AIRCRAFT SUPPORT, LLC for work described as: 200408!000078!9700!H92241!USSOCOM, TAKO CONTRACTING DIV. !USZA9503D0012 !A!N! !N!0004 ! !20040101!20041231!807454418!807454418!963957972!N!BOEING SIKORSKY AIRCRAFT SUPPO!7281 NIGHTSTALKER WAY !FORT CAMPBELL !KY!42223!28486!047!21!FORT CAMPBELL NORTH !CHRI… Key points: 1. Contract awarded for maintenance and repair of aircraft components and accessories. 2. Significant contract value suggests a critical role in supporting aviation assets. 3. Long duration of the contract (over 8 years) indicates sustained operational needs. 4. Awarded as a sole-source contract, raising questions about competition and potential cost efficiencies. 5. The contract's focus on 'Other Aircraft Equipment' suggests a broad scope of support. 6. Contractor has a substantial presence in supporting military aviation.

Value Assessment

Rating: fair

The contract value of approximately $269 million over its lifespan is substantial. Without specific benchmarks for similar sole-source contracts for aircraft component maintenance and repair, a precise value-for-money assessment is challenging. However, the extended duration and the nature of the services suggest a significant investment. The 'COST NO FEE' contract type implies that the government reimburses the contractor for allowable costs plus a negotiated fee, which can sometimes lead to less cost control compared to fixed-price contracts if not managed diligently.

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 typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means there was no direct price comparison through bidding, potentially leading to higher costs for the government than if multiple offers had been considered.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage competitive pressures to secure the best possible pricing, potentially resulting in less favorable terms for taxpayers.

Public Impact

The primary beneficiaries are likely military aviation units requiring maintenance and repair for their aircraft components and accessories. Services delivered include the maintenance and repair of aircraft components and accessories, ensuring operational readiness. The contract is geographically tied to Fort Campbell, Kentucky, indicating a direct impact on operations at that base. Workforce implications include direct and indirect employment opportunities for skilled technicians and support staff in the aviation maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Long contract duration may not reflect evolving technological needs or market changes.
Lack of competition could reduce incentives for the contractor to innovate or improve efficiency.
Cost-plus contract type requires robust oversight to manage allowable costs effectively.

Positive Signals

Contractor is a known entity in aircraft support, suggesting established expertise.
Long-term award indicates a sustained need and potential for stable support.
Focus on maintenance and repair ensures operational readiness of critical assets.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aviation maintenance and support services. The market for such services is substantial, driven by the ongoing need to maintain complex military aircraft fleets. Comparable spending benchmarks would typically involve other contracts for aircraft component repair, overhaul, and logistics support, often awarded to large defense contractors with specialized capabilities. The engineering services code (NAICS 541330) indicates a focus on engineering and design related to these support functions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award to a large contractor, it is unlikely to involve significant subcontracting opportunities for small businesses unless explicitly mandated or pursued by the prime contractor. This contract does not appear to directly contribute to the small business ecosystem through set-asides.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The 'COST NO FEE' (pt: COST NO FEE) contract type necessitates rigorous financial oversight to verify allowable costs and the reasonableness of the fee. Transparency is generally limited for sole-source awards, but contract modifications and performance reports would be subject to internal government review and potentially Freedom of Information Act (FOIA) requests, though sensitive defense information may be redacted.

Related Government Programs

Aircraft Maintenance and Repair Services
Aviation Support Contracts
Defense Logistics Support
Military Aircraft Component Services
USSOCOM Procurement

Risk Flags

Sole-source award
Long contract duration
Cost-plus contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.9 million to BOEING SIKORSKY AIRCRAFT SUPPORT, LLC. 200408!000078!9700!H92241!USSOCOM, TAKO CONTRACTING DIV. !USZA9503D0012 !A!N! !N!0004 ! !20040101!20041231!807454418!807454418!963957972!N!BOEING SIKORSKY AIRCRAFT SUPPO!7281 NIGHTSTALKER WAY !FORT CAMPBELL !KY!42223!28486!047!21!FORT CAMPBELL NORTH !CHRISTIAN !KENTUCKY !+000005544584!N!N!000000000000!J016!MAINT & REPAIR OF EQ/AIRCRAFT COMPS & ACCYS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !541330!E! !5!B!S! ! !D!200

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $26.9 million.

What is the period of performance?

Start: 2004-01-01. End: 2010-09-23.

What is the historical spending trend for aircraft component maintenance and repair services by the Department of Defense?

The Department of Defense consistently allocates significant funding towards aircraft maintenance and repair services, essential for maintaining the operational readiness of its vast aviation fleet. Historical spending data reveals a multi-billion dollar annual expenditure across various branches for services ranging from routine upkeep to complex overhauls and component replacements. This spending is influenced by factors such as the age of aircraft, operational tempo, technological advancements, and strategic priorities. Contracts in this domain often span several years due to the long lifecycle of military aircraft and the specialized nature of the required expertise. While specific figures fluctuate year-to-year, the consistent and substantial investment underscores the critical importance of these services to national defense capabilities.

How does the 'COST NO FEE' contract type typically impact contractor performance and government oversight compared to fixed-price contracts?

The 'COST NO FEE' (CNF) contract type, also known as Cost-Plus-Fixed-Fee (CPFF) when a fee is involved, reimburses the contractor for allowable costs incurred plus a predetermined fixed fee. This contrasts with fixed-price contracts, where the price is set regardless of the actual costs incurred. CNF contracts are often used when the scope of work is uncertain or involves research and development. For contractor performance, CNF can incentivize the contractor to incur costs to maximize profit if the fee is a percentage of costs, though in a 'COST NO FEE' structure, the fee is fixed, reducing this incentive. However, it can also reduce the contractor's risk, potentially leading to less aggressive cost management. Government oversight is crucial for CNF contracts to ensure that all costs claimed are allowable, allocable, and reasonable, requiring detailed auditing and monitoring of expenditures. Fixed-price contracts generally place more cost risk on the contractor, incentivizing efficiency, but can be less suitable for undefined scopes.

What are the potential risks associated with sole-source contracts for long-term support services?

Sole-source contracts, especially for long-term support services, carry several potential risks. Firstly, the lack of competition can lead to inflated prices, as the government cannot leverage market forces to secure the best value. Secondly, without competitive pressure, the contractor may have reduced incentives to innovate, improve efficiency, or maintain high service quality over the contract's duration. Thirdly, there's a risk of vendor lock-in, where the government becomes heavily reliant on a single provider, making it difficult and costly to switch even if performance or pricing becomes unsatisfactory. Finally, sole-source awards can sometimes be perceived as lacking transparency and fairness, potentially leading to scrutiny from oversight bodies and the public. Robust contract management and performance metrics are essential to mitigate these risks.

What is the typical track record of Boeing Sikorsky Aircraft Support, LLC in supporting military aviation contracts?

Boeing Sikorsky Aircraft Support, LLC, as a subsidiary or division of major aerospace corporations, typically has a strong track record in supporting military aviation contracts. These entities are generally experienced in providing a wide range of services, including aircraft maintenance, repair, overhaul (MRO), logistics, and system upgrades for various military platforms. Their history often involves fulfilling complex requirements for different branches of the armed forces, demonstrating capabilities in managing large-scale, long-term support agreements. Performance is usually evaluated based on factors like on-time delivery, quality of work, cost control, and adherence to technical specifications. While specific contract performance details are often proprietary, their continued engagement in the defense sector suggests a generally positive performance history and established credibility with government agencies.

How does the geographic location of Fort Campbell, KY, influence the support requirements for aircraft components and accessories?

The geographic location of Fort Campbell, Kentucky, as a major Army installation and home to the 101st Airborne Division (Air Assault), significantly influences the support requirements for aircraft components and accessories. This base hosts a large fleet of helicopters and other aircraft critical for air assault operations, including UH-60 Black Hawks, CH-47 Chinooks, and AH-64 Apaches. Consequently, there is a continuous and high demand for maintenance, repair, and the supply of spare parts for these specific platforms. Proximity of support services to the operational units is crucial for minimizing aircraft downtime and ensuring rapid response to maintenance needs, thereby directly impacting combat readiness and mission effectiveness. The contract's focus on this location suggests a need for localized, responsive support tailored to the unique operational tempo and equipment profile of Fort Campbell-based aviation units.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST NO FEE (S)

Contractor Details

Parent Company: THE Boeing Company (UEI: 009256819)

Address: 7281 NIGHTSTALKER WAY, FORT CAMPBELL, KY, 01

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: USZA9503D0012

IDV Type: IDC

Timeline