Army Awards $60.6M for H-60 Helicopter Services to Sikorsky Aircraft Corp

Contract Overview

Contract Amount: $60,573,485 ($60.6M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2011-12-01

End Date: 2014-05-26

Contract Duration: 907 days

Daily Burn Rate: $66.8K/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 $60.6 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 to Sikorsky Aircraft Corporation for integrated services and supplies for H-60 weapon system. 2. Services include technical, engineering, and logistical support for overhaul, repair, and recapitalization. 3. The contract was not competed, raising questions about potential price discovery. 4. Spending is concentrated in Texas, supporting the Corpus Christi Army Depot and AMCOM.

Value Assessment

Rating: questionable

The contract value of $60.6 million for a 907-day period is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The lack of competition means taxpayers may not have received the best possible price for these critical aviation services.

Public Impact

Supports critical Army aviation readiness for the H-60 weapon system. Contract funds are directed towards maintenance and repair, extending the life of existing assets. Geographic concentration of spending in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award

Positive Signals

Supports critical military asset
Long-term service contract

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector vital for defense readiness. Benchmarks for similar sole-source engineering services contracts are difficult to establish without competitive data.

Small Business Impact

The contract data indicates that small business participation was not a factor in this award (sb: false).

Oversight & Accountability

The lack of competition suggests potential oversight gaps in ensuring the most cost-effective procurement methods were explored.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits price competition.
Potential for inflated costs due to lack of bidding.
Limited transparency on justification for non-competition.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.6 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 $60.6 million.

What is the period of performance?

Start: 2011-12-01. End: 2014-05-26.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further documentation, it's unclear why competitive bidding was bypassed for these essential aviation services, potentially impacting cost-effectiveness.

How does the per-unit cost of H-60 overhaul and repair compare to industry benchmarks given the sole-source nature of this contract?

Assessing the per-unit cost is challenging due to the sole-source nature of this contract. Without competitive bids, there's no market-driven benchmark to compare against. This lack of competition raises concerns that the government may not have secured the most economical pricing for these services.

What is the long-term impact on military readiness and budget if sole-source contracts become the norm for critical aviation maintenance?

If sole-source contracts become the norm for critical aviation maintenance, it could lead to escalating costs and reduced innovation. Over time, this could strain the defense budget and potentially impact the long-term readiness and modernization of the H-60 fleet and other weapon systems.

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: $60,573,485

Exercised Options: $60,573,485

Current Obligation: $60,573,485

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W58RGZ09D0029

IDV Type: IDC

Timeline