DoD's $104M Boeing Sikorsky Contract for Aircraft Spares and Repairs Lacks Competition
Contract Overview
Contract Amount: $104,281,458 ($104.3M)
Contractor: Boeing Sikorsky Aircraft Support, LLC
Awarding Agency: Department of Defense
Start Date: 2017-01-07
End Date: 2017-12-31
Contract Duration: 358 days
Daily Burn Rate: $291.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF SPARES AND REPAIRS
Place of Performance
Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $104.3 million to BOEING SIKORSKY AIRCRAFT SUPPORT, LLC for work described as: IGF::OT::IGF SPARES AND REPAIRS Key points: 1. Significant spending on aircraft spares and repairs. 2. Sole-source award to Boeing Sikorsky Aircraft Support, LLC. 3. Contract awarded by U.S. Special Operations Command. 4. High value contract with limited transparency on pricing. 5. Potential for cost overruns due to cost-plus contract type.
Value Assessment
Rating: questionable
The contract is Cost Plus Fixed Fee, which can lead to higher costs than fixed-price contracts. Without competitive bidding, it's difficult to assess if the pricing is reasonable compared to market rates for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these critical aircraft support services.
Public Impact
Special Operations Command relies on this contract for essential aircraft maintenance. The sole-source nature raises concerns about efficient use of taxpayer funds. Lack of competition could impact the availability and cost of critical spare parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency on pricing
Positive Signals
- Essential support for Special Operations Command aircraft
Sector Analysis
This contract falls under Other Support Activities for Air Transportation, a critical sector for defense operations. Benchmarks for similar sole-source, cost-plus contracts are difficult to establish due to inherent lack of transparency.
Small Business Impact
This contract was awarded to a large business (Boeing Sikorsky Aircraft Support, LLC) and does not appear to include provisions for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste, fraud, and abuse. Accountability for cost management is crucial.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Cost-plus contract type may incentivize higher costs.
- Limited transparency on pricing and cost controls.
- Potential for taxpayer funds to be used inefficiently.
Tags
other-support-activities-for-air-transpo, department-of-defense, ky, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $104.3 million to BOEING SIKORSKY AIRCRAFT SUPPORT, LLC. IGF::OT::IGF SPARES AND REPAIRS
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 (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $104.3 million.
What is the period of performance?
Start: 2017-01-07. End: 2017-12-31.
What specific justification was provided for awarding this contract on a sole-source basis, and what steps were taken to ensure the government received fair value?
The justification for a sole-source award typically involves unique capabilities or lack of alternatives. Without access to the specific justification document, it's impossible to detail the steps taken to ensure fair value. However, for sole-source contracts, agencies should conduct thorough market research and potentially negotiate pricing rigorously to mitigate the risks associated with non-competitive awards.
What are the potential risks associated with a Cost Plus Fixed Fee contract for aircraft spares and repairs, especially when awarded sole-source?
A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. When awarded sole-source, the government lacks the leverage of competition to drive down costs. This increases the risk of the contractor incurring higher-than-necessary costs, as the incentive to control expenses is reduced, potentially leading to significant overspending of taxpayer funds.
How does the lack of competition in this contract impact the long-term readiness and cost-effectiveness of U.S. Special Operations Command's aircraft fleet?
The lack of competition can lead to inflated prices for essential spares and repairs, directly impacting the cost-effectiveness of maintaining the fleet. Over the long term, this could strain the budget allocated for aircraft readiness, potentially forcing difficult trade-offs. It may also stifle innovation and efficiency improvements that could arise from a competitive market.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: H9224111R0003
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: THE Boeing Company (UEI: 009256819)
Address: 7244B NIGHTSTALKER WAY, FORT CAMPBELL, KY, 42223
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $113,041,172
Exercised Options: $113,041,172
Current Obligation: $104,281,458
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9224113D0007
IDV Type: IDC
Timeline
Start Date: 2017-01-07
Current End Date: 2017-12-31
Potential End Date: 2017-12-31 00:00:00
Last Modified: 2018-01-24
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