Army awards $48.4M contract to Sikorsky for H-60 helicopter sustainment services

Contract Overview

Contract Amount: $48,357,202 ($48.4M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2009-12-01

End Date: 2011-03-31

Contract Duration: 485 days

Daily Burn Rate: $99.7K/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 $48.4 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. The contract focuses on technical, engineering, and logistical support for H-60 helicopter overhaul and repair. 2. Sikorsky Aircraft Corporation is the sole awardee, indicating a lack of competition for this specific requirement. 3. The firm fixed-price contract type aims to control costs, but the absence of competition raises potential value concerns. 4. This spending falls within the Engineering Services sector, supporting critical Army aviation readiness.

Value Assessment

Rating: questionable

The total award value is $48.4 million. Without competitive bids, it's difficult to assess if this price represents fair market value for the integrated services and supplies provided.

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 may result in higher costs for taxpayers compared to a competitive procurement.

Taxpayer Impact: The lack of competition for this significant contract value means taxpayers may not be receiving the best possible price for these essential aviation support services.

Public Impact

Ensures continued operational readiness of the H-60 weapon system for the U.S. Army. Supports critical maintenance and repair functions at Corpus Christi Army Depot (CCAD). Provides essential technical, engineering, and logistical expertise for complex aviation systems. The sole-source nature of the award warrants scrutiny to ensure taxpayer funds are used efficiently.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing
Sole-source award

Positive Signals

Supports critical weapon system sustainment
Firm fixed-price contract type
Focus on technical and logistical expertise

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector crucial for defense readiness. The $48.4 million award is significant and supports specialized aviation maintenance, a key area for military operations.

Small Business Impact

The data indicates this contract was awarded to Sikorsky Aircraft Corporation and does not mention any small business participation. Further investigation would be needed to determine if small businesses were subcontracted.

Oversight & Accountability

The sole-source nature of this award suggests limited transparency in the procurement process. Robust oversight is needed to ensure the justification for not competing the contract was sound and that pricing is reasonable.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competitive bidding
Potential for overpayment
Limited transparency in procurement
No stated small business participation
Sole-source award raises value concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.4 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 $48.4 million.

What is the period of performance?

Start: 2009-12-01. End: 2011-03-31.

What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or situations where only one responsible source can provide the required supplies or services. For this H-60 sustainment contract, the justification likely centered on Sikorsky's proprietary knowledge and existing role with the weapon system, potentially making a competitive process impractical or excessively time-consuming.

How can the Army ensure fair pricing and value for money in future sole-source contracts for H-60 sustainment?

To ensure fair pricing, the Army could conduct thorough market research to identify potential competitors or alternative solutions, even if limited. Implementing robust independent government cost estimates, negotiating aggressively, and potentially breaking down the requirement into smaller, more competitive components could also enhance value. Regular performance reviews and benchmarking against similar services are also crucial.

What is the long-term impact of sole-source awards on the Army's ability to maintain and modernize its aviation fleet?

Over-reliance on sole-source awards can stifle innovation and competition within the defense industrial base, potentially leading to higher costs and reduced technological advancement. It can also limit the Army's flexibility in adapting its fleet to new requirements or integrating new technologies. Encouraging competition where feasible is vital for long-term cost-effectiveness and modernization.

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: $48,357,202

Exercised Options: $48,357,202

Current Obligation: $48,357,202

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W58RGZ09D0029

IDV Type: IDC

Timeline