DoD awards $83.5M for Helicopter Rotor Blades to Sikorsky Aircraft Corporation, contract duration over 8 years

Contract Overview

Contract Amount: $24,769,903 ($24.8M)

Contractor: Sikorsky Support Services Inc

Awarding Agency: Department of Defense

Start Date: 2001-12-21

End Date: 2010-09-15

Contract Duration: 3,190 days

Daily Burn Rate: $7.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200205!2P1725!1700!JA103 !NAVAL INVENTORY CONTROL POINT !N0038301G015N !A!N! !N!0070 !20011221!20040131!835551474!835551474!001344142!N!SIKORSKY AIRCRAFT CORPORATION !6900 MAIN STREET !STRATFORD !CT!06615!74260!001!09!STRATFORD !FAIRFIELD !CONN !+000010200818!Y!N!000000000000!1615!HELICOPTER ROTOR BLADES, DRIVE MECHANISMS & COMPON!A1A!AIRFRAMES AND SPARES !2AHP!CH-53 SEA STALLION !336413!E! !4! ! ! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1A!A!Y!F! ! !N!C!N! ! ! !A!A!A!A!* !A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $24.8 million to SIKORSKY SUPPORT SERVICES INC for work described as: 200205!2P1725!1700!JA103 !NAVAL INVENTORY CONTROL POINT !N0038301G015N !A!N! !N!0070 !20011221!20040131!835551474!835551474!001344142!N!SIKORSKY AIRCRAFT CORPORATION !6900 MAIN STREET !STRATFORD !CT!06615!74260!001!09!STRATFORD !FAIRF… Key points: 1. Contract awarded for critical helicopter components, indicating ongoing maintenance and operational needs for the CH-53 Sea Stallion. 2. The award to Sikorsky Aircraft Corporation highlights their established role in supplying specialized aerospace parts. 3. Potential risk associated with a sole-source or limited competition award for essential defense equipment. 4. Spending in the 'Aircraft and Parts Manufacturing' sector is significant, reflecting the high cost of aerospace defense procurement.

Value Assessment

Rating: fair

The contract value of $83.5M over approximately 8 years suggests a substantial investment. Benchmarking against similar sole-source or limited competition contracts for specialized aerospace components would be necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, suggesting a limited competition approach. This method can impact price discovery, potentially leading to higher costs compared to a full and open competition.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential helicopter parts.

Public Impact

Ensures continued operational readiness of CH-53 Sea Stallion helicopters, vital for military transport and operations. Supports a key defense contractor, potentially impacting jobs and the aerospace supply chain. Highlights the reliance on specific manufacturers for specialized military equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Long contract duration
Sole-source award

Positive Signals

Ensures supply of critical components
Supports established defense contractor

Sector Analysis

This contract falls within the 'Aircraft and Parts Manufacturing' sector, which is characterized by high R&D costs, complex supply chains, and significant government procurement. Defense spending in this sector is often substantial due to the specialized nature of the products.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses within this contract. Analysis would be needed to determine if small business participation was sought or achieved.

Oversight & Accountability

The contract was awarded by the Department of Defense, with oversight likely managed by the Defense Contract Management Agency. Further review of contract performance reports and audits would be needed to assess accountability.

Related Government Programs

Aircraft Engine and Engine Parts Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential for cost overruns due to lack of competition.
Risk of supply chain disruption if the sole provider faces issues.
Limited leverage for future contract negotiations.
Dependency on a single manufacturer for critical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.8 million to SIKORSKY SUPPORT SERVICES INC. 200205!2P1725!1700!JA103 !NAVAL INVENTORY CONTROL POINT !N0038301G015N !A!N! !N!0070 !20011221!20040131!835551474!835551474!001344142!N!SIKORSKY AIRCRAFT CORPORATION !6900 MAIN STREET !STRATFORD !CT!06615!74260!001!09!STRATFORD !FAIRFIELD !CONN !+000010200818!Y!N!000000000000!1615!HELICOPTER ROTOR BLADES, DRIVE MECHANISMS & COMPON!A1A!AIRFRAMES AND SPARES !2AHP!CH-53 SEA STALLION !336413!E! !4! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is SIKORSKY SUPPORT SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $24.8 million.

What is the period of performance?

Start: 2001-12-21. End: 2010-09-15.

What was the justification for the limited competition award for these helicopter rotor blades?

The justification for limited competition would typically stem from factors such as the proprietary nature of the technology, the need for interoperability with existing systems, or the unavailability of alternative sources. A thorough review of the contract's justification for other than full and open competition (JOFOC) documentation is required to ascertain the specific reasons.

How does the per-unit cost of these rotor blades compare to industry benchmarks for similar components?

Without specific per-unit cost data and access to industry benchmarks for comparable helicopter rotor blades, a direct comparison is not possible. The total contract value and duration provide a high-level view, but detailed cost analysis requires breaking down the contract into its constituent parts and comparing them against market rates or historical data for similar procurements.

What is the long-term strategic impact of relying on a single supplier for such critical helicopter components?

Long-term reliance on a single supplier can create strategic vulnerabilities, including potential price escalation, supply chain disruptions, and reduced innovation. It also limits the government's leverage in future negotiations. Diversifying the supplier base or developing alternative technologies could mitigate these risks.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

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: RTX Corp (UEI: 001344142)

Address: 6900 MAIN ST, STRATFORD, CT, 03

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0038301G015N

IDV Type: IDC

Timeline