Over $92M awarded to Sikorsky Aircraft Corporation for H-60 weapon system support, a sole-source contract

Contract Overview

Contract Amount: $92,475,480 ($92.5M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2011-12-01

End Date: 2019-03-01

Contract Duration: 2,647 days

Daily Burn Rate: $34.9K/day

Competition Type: NOT COMPETED

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 $92.5 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 comprehensive technical, engineering, and logistical services for H-60 weapon system overhaul and repair. 2. Significant portion of the award allocated for materials supporting the recapitalization efforts. 3. Contract duration spanned over 2,600 days, indicating a long-term support requirement. 4. Sole-source award raises questions about potential lack of competitive pricing and value. 5. Performance context is critical given the specialized nature of aviation systems support. 6. Sector positioning within defense aviation maintenance and sustainment is a key consideration.

Value Assessment

Rating: questionable

The contract value of over $92 million for H-60 weapon system support is substantial. However, as a sole-source award, it is difficult to benchmark against competitive contracts to assess true value for money. The absence of competition may have led to higher pricing than could have been achieved in an open market. Further analysis would require access to cost breakdowns and comparisons with similar sole-source aviation support contracts.

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 possesses the necessary capabilities, proprietary knowledge, or when urgency dictates a direct award. The lack of competition limits the government's ability to leverage market forces to secure the best possible pricing and terms.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. This contract's value suggests a significant potential for overpayment compared to a competed scenario.

Public Impact

The primary beneficiaries are the U.S. Army Aviation and Missile Command (AMCOM) and the Corpus Christi Army Depot (CCAD), receiving critical support for their H-60 fleet. Services delivered include overhaul, repair, and recapitalization of the H-60 weapon system, ensuring operational readiness. Geographic impact is concentrated around CCAD in Texas, but the H-60 fleet has a global operational footprint. Workforce implications include specialized engineering, technical, and logistical roles required for complex aviation maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Long contract duration (over 2,600 days) may indicate a lack of agile procurement or evolving needs.
Absence of small business subcontracting data raises concerns about broader economic impact.
Limited public information on performance metrics makes it difficult to assess effectiveness independently.

Positive Signals

Contract addresses critical sustainment needs for a key military aviation platform (H-60).
Sikorsky Aircraft Corporation is a known entity with established expertise in this platform.
Award includes both services and materials, suggesting a comprehensive support package.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on aviation systems maintenance and sustainment. The market for military aircraft support is characterized by high barriers to entry due to specialized knowledge, certifications, and existing relationships with defense agencies. Comparable spending benchmarks would involve analyzing other long-term sustainment contracts for major weapon systems within the Department of Defense.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. This suggests that the primary contractor, Sikorsky Aircraft Corporation, is handling the majority of the work. The lack of small business involvement could limit opportunities for smaller firms within the defense aviation MRO ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be tied to contract performance clauses and delivery schedules. Transparency is limited due to the sole-source nature and lack of readily available performance data in the public domain. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

H-60 Black Hawk Helicopter Sustainment
Army Aviation Readiness Programs
Defense Logistics Agency (DLA) Aviation Support Contracts
Airframe Overhaul and Repair Services
Military Helicopter Maintenance Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Limited transparency on performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $92.5 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 $92.5 million.

What is the period of performance?

Start: 2011-12-01. End: 2019-03-01.

What is Sikorsky Aircraft Corporation's track record with H-60 weapon system support contracts?

Sikorsky Aircraft Corporation, a subsidiary of Lockheed Martin, has a long and established history with the H-60 platform, including its development and ongoing sustainment. They are the original equipment manufacturer (OEM) for many H-60 variants. Their track record typically involves providing a range of services from initial production to long-term maintenance, repair, and overhaul (MRO). This includes providing spare parts, technical support, engineering services, and depot-level maintenance. Given their OEM status, they possess unique technical data and expertise critical for supporting the H-60 weapon system throughout its lifecycle. Past performance on similar contracts would likely be a key factor in the government's decision-making, even in a sole-source context, to ensure continued operational readiness and safety of the aircraft.

How does the value of this contract compare to other H-60 sustainment efforts?

Direct comparison of this $92.4 million contract value to other H-60 sustainment efforts is challenging without knowing the specific scope, duration, and type of services rendered. However, the value is significant, reflecting the complexity and long-term nature of overhauling, repairing, and recapitalizing a major weapon system like the H-60. Sustainment contracts for military aircraft can range from tens of millions to billions of dollars over their lifecycles. This particular award, covering a defined period (2011-2019), represents a substantial investment. If this were a sole-source award, it's plausible that a competed contract might have yielded lower prices due to competitive bidding, but the exact difference is speculative without comparative data.

What are the primary risks associated with a sole-source award for critical aviation support?

The primary risks associated with a sole-source award for critical aviation support, such as this H-60 contract, revolve around cost and potential complacency. Without competition, there is less pressure on the contractor to offer the most competitive pricing, potentially leading to higher costs for the government and taxpayers. There's also a risk that the sole-source provider might become complacent in terms of innovation or service quality, knowing that the government has limited alternatives. Furthermore, reliance on a single provider can create supply chain vulnerabilities or risks if that provider faces financial difficulties or operational disruptions. Ensuring robust oversight and performance management becomes even more critical in sole-source situations.

How effective is the H-60 weapon system, and what is the impact of this contract on its operational readiness?

The H-60 family of helicopters (including the Black Hawk) is a highly versatile and widely used platform within the U.S. military, known for its reliability and adaptability across various missions, including troop transport, medical evacuation, and special operations. This contract, providing overhaul, repair, and recapitalization services, is directly aimed at maintaining and enhancing the operational readiness and lifespan of these critical assets. By ensuring that H-60s are properly maintained and modernized, this contract contributes significantly to the Army's ability to deploy and sustain forces effectively. The services provided help mitigate degradation, extend service life, and ensure the aircraft meet demanding operational requirements, thereby supporting overall mission success.

What are the historical spending patterns for H-60 sustainment within the Department of the Army?

Historical spending patterns for H-60 sustainment within the Department of the Army are substantial, reflecting the large fleet size and long operational life of this platform. The Army consistently allocates significant funds towards maintaining, repairing, and upgrading its H-60 fleet. This includes contracts for depot-level maintenance, component repair, spare parts, and technical support, often awarded to the OEM (Sikorsky) or other specialized aviation MRO providers. Spending can fluctuate based on modernization programs, fleet readiness goals, and the overall defense budget. Over the years, cumulative spending on H-60 sustainment likely runs into the billions of dollars, underscoring the platform's enduring importance and the continuous need for robust support services.

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

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: $92,475,480

Exercised Options: $92,475,480

Current Obligation: $92,475,480

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W58RGZ09D0029

IDV Type: IDC

Timeline