DoD awards $40.2M contract for main rotor blade overhaul to Sikorsky Aircraft Corporation
Contract Overview
Contract Amount: $40,232,947 ($40.2M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2010-06-21
End Date: 2020-02-28
Contract Duration: 3,539 days
Daily Burn Rate: $11.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: OVERHAUL OF THE MAIN ROTOR BLADES
Place of Performance
Location: DALLAS, DALLAS County, TEXAS, 75261, UNITED STATES OF AMERICA
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $40.2 million to SIKORSKY AIRCRAFT CORPORATION for work described as: OVERHAUL OF THE MAIN ROTOR BLADES Key points: 1. Contract awarded to a single, established manufacturer. 2. No competition identified for this specific overhaul service. 3. Potential for higher costs due to lack of competitive bidding. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: fair
The contract value of $40.2 million for rotor blade overhaul appears substantial. Without comparable contract data or detailed cost breakdowns, it's difficult to definitively assess if this price is competitive. The firm-fixed-price structure offers some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was sole-sourced, meaning no competitive bidding process was conducted. This approach limits price discovery and may result in higher costs for the government compared to a competed contract. The justification for sole-sourcing is not provided.
Taxpayer Impact: Taxpayers may bear a higher cost due to the absence of competition, as the government did not leverage market forces to secure the best possible price.
Public Impact
Ensures continued operational readiness of Army aircraft by maintaining critical components. Supports a key defense contractor, potentially impacting jobs and industry capacity. Lack of transparency in sole-source awards can erode public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Long contract duration
Positive Signals
- Supports critical defense capability
- Firm fixed price contract
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military aviation fleets. Benchmarks for rotor blade overhaul costs are highly specialized and depend on the specific aircraft type and extent of work.
Small Business Impact
The contract was awarded to Sikorsky Aircraft Corporation, a large, established entity. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting limited small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Further investigation into the justification for not competing the contract and the oversight mechanisms in place to ensure fair pricing would be beneficial for accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- 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.
- Long contract duration (2010-2020) may not reflect current market conditions.
- Lack of transparency regarding justification for sole-sourcing.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.2 million to SIKORSKY AIRCRAFT CORPORATION. OVERHAUL OF THE MAIN ROTOR BLADES
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 $40.2 million.
What is the period of performance?
Start: 2010-06-21. End: 2020-02-28.
What was the specific justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The provided data does not include the justification for the sole-source award. Typically, sole-sourcing is reserved for situations where only one responsible source can provide the required supplies or services, or in cases of urgent need. Without this information, it's impossible to assess the validity of the sole-source decision and its impact on value for money.
How does the $40.2 million cost compare to industry benchmarks for similar rotor blade overhaul services?
Determining a precise benchmark for this specific contract is challenging without more detailed information on the scope of work, the specific helicopter model, and the extent of the overhaul. However, the absence of competition suggests that this price may not reflect the most cost-effective option available in the market. Further analysis would require access to detailed cost breakdowns and comparable contract data.
What measures are in place to ensure the quality and effectiveness of the rotor blade overhaul services provided by Sikorsky Aircraft Corporation?
As a sole-source award to a major defense contractor, it is presumed that Sikorsky Aircraft Corporation adheres to stringent quality control and performance standards mandated by the Department of the Army. However, the specific oversight mechanisms, inspection protocols, and performance metrics used to ensure the effectiveness and safety of the overhaul services are not detailed in the provided data.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment 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 STREET, STRATFORD, CT, 06615
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $40,232,947
Exercised Options: $40,232,947
Current Obligation: $40,232,947
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ06D0116
IDV Type: IDC
Timeline
Start Date: 2010-06-21
Current End Date: 2020-02-28
Potential End Date: 2020-02-28 00:00:00
Last Modified: 2015-01-16
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