Army Awards $71.2M for H-60 Helicopter Services to Sikorsky Aircraft Corporation

Contract Overview

Contract Amount: $71,228,800 ($71.2M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2009-12-01

End Date: 2010-11-30

Contract Duration: 364 days

Daily Burn Rate: $195.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROVIDE INTEGRATED SERVICES AND SUPPLIES TO INCLUDE TECHNICAL, ENGINEERING, AND LOGISTICAL SERVICES (TELS) AND 100% MATERIAL TO SUPPORT CORPUS CHRISTI ARMY DEPOT (CCAD) AND US ARMY AVIATION AND MISSILE COMMAND (AMCOM) IN THE OVERHAUL, REPAIR AND RECAPITALIZATION OF THE H-60 WEAPON SYSTEM.

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $71.2 million to SIKORSKY AIRCRAFT CORPORATION for work described as: PROVIDE INTEGRATED SERVICES AND SUPPLIES TO INCLUDE TECHNICAL, ENGINEERING, AND LOGISTICAL SERVICES (TELS) AND 100% MATERIAL TO SUPPORT CORPUS CHRISTI ARMY DEPOT (CCAD) AND US ARMY AVIATION AND MISSILE COMMAND (AMCOM) IN THE OVERHAUL, REPAIR AND RECAPITALIZATION OF THE H-60 WEAPO… Key points: 1. Contract awarded for integrated technical, engineering, and logistical services for H-60 weapon system. 2. Sikorsky Aircraft Corporation is the sole awardee, indicating a lack of competition. 3. The contract value is substantial at over $71 million. 4. Services support Corpus Christi Army Depot (CCAD) and AMCOM. 5. The contract type is Firm Fixed Price, providing cost certainty.

Value Assessment

Rating: fair

The contract value of $71.2 million for engineering services is significant. Benchmarking against similar complex aviation maintenance and overhaul contracts is difficult without more detailed scope information. However, the lack of competition may have impacted price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The absence of competition for a contract of this magnitude raises concerns about potential overspending and the efficient use of taxpayer funds.

Public Impact

Ensures continued operational readiness of the H-60 weapon system for critical Army missions. Supports specialized technical, engineering, and logistical expertise for complex aircraft overhauls. Potential for higher costs due to sole-source award impacts taxpayer value. Job creation and economic activity in Texas where the services are likely performed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
High contract value

Positive Signals

Supports critical weapon system
Firm Fixed Price contract type
Long-term support for Army aviation

Sector Analysis

This contract falls under Engineering Services, a sector critical for maintaining complex military assets. Spending in this area is often driven by specific platform needs and can be subject to limited competition due to specialized expertise requirements.

Small Business Impact

The data indicates this contract was not awarded to small businesses, nor does it appear to have subcontracting goals for small businesses. This represents a missed opportunity for small business participation in defense contracting.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and necessity. Further oversight may be needed to confirm the justification for not competing the requirement and to assess value for money.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Sole-source award
Potential for inflated pricing
Limited small business participation
High contract value without clear justification for sole-sourcing

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.2 million to SIKORSKY AIRCRAFT CORPORATION. PROVIDE INTEGRATED SERVICES AND SUPPLIES TO INCLUDE TECHNICAL, ENGINEERING, AND LOGISTICAL SERVICES (TELS) AND 100% MATERIAL TO SUPPORT CORPUS CHRISTI ARMY DEPOT (CCAD) AND US ARMY AVIATION AND MISSILE COMMAND (AMCOM) IN THE OVERHAUL, REPAIR AND RECAPITALIZATION OF THE H-60 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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $71.2 million.

What is the period of performance?

Start: 2009-12-01. End: 2010-11-30.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

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 difficult to ascertain the exact reason. However, for a contract of this size and duration, a thorough justification is crucial to ensure taxpayer funds are used efficiently and that competition was genuinely not feasible.

How does the per-unit cost of overhaul, repair, and recapitalization compare to industry benchmarks for the H-60 weapon system?

Without specific per-unit cost data and detailed scope of work for each H-60 unit serviced, a direct comparison to industry benchmarks is not possible. The total contract value of $71.2 million is for a variety of services and materials over a year. A detailed cost analysis would be required, comparing the contractor's proposed costs against independent government cost estimates and market research for similar services.

What is the long-term strategy for ensuring competitive sourcing for future H-60 sustainment and overhaul requirements?

The long-term strategy should focus on breaking down future requirements into smaller, more competitive packages where feasible. Developing organic government capabilities or fostering competition among multiple qualified contractors for different aspects of H-60 sustainment could be explored. Proactive market research and engagement with potential offerors are essential to encourage competition and ensure better value.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

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: $71,228,800

Exercised Options: $71,228,800

Current Obligation: $71,228,800

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W58RGZ09D0029

IDV Type: IDC

Timeline