DoD Spends $82.4M on Boeing/Sikorsky Aircraft Parts, Lacking Competition

Contract Overview

Contract Amount: $82,425,569 ($82.4M)

Contractor: Boeing Sikorsky Aircraft Support, LLC

Awarding Agency: Department of Defense

Start Date: 2013-12-24

End Date: 2015-07-31

Contract Duration: 584 days

Daily Burn Rate: $141.1K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: REPAIRS/SPARES(PARTS)

Place of Performance

Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $82.4 million to BOEING SIKORSKY AIRCRAFT SUPPORT, LLC for work described as: REPAIRS/SPARES(PARTS) Key points: 1. Significant spending on aircraft parts highlights ongoing maintenance needs. 2. Sole-source award to Boeing/Sikorsky raises concerns about price discovery. 3. Contract duration of nearly two years suggests substantial operational reliance. 4. Lack of competition may lead to inflated costs for taxpayers.

Value Assessment

Rating: questionable

The $82.4 million awarded for repairs and spares is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for aircraft parts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Boeing Sikorsky Aircraft Support, LLC. This limits price discovery and potentially increases costs for the government.

Taxpayer Impact: The absence of competition for a significant expenditure like aircraft parts means taxpayers may be overpaying for essential services.

Public Impact

Taxpayers may be footing a higher bill due to the lack of competitive bidding. The reliance on a single supplier for critical aircraft parts could pose a supply chain risk. This spending supports the operational readiness of military aircraft.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High dollar value

Positive Signals

Supports critical defense operations

Sector Analysis

This contract falls under the Defense sector, specifically for aircraft parts and support. Spending in this area is crucial for maintaining military readiness, but competitive procurement is vital to ensure cost-effectiveness.

Small Business Impact

There is no indication that small businesses were involved in this sole-source contract, suggesting missed opportunities for small business participation.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency. Further oversight would be needed to ensure the fixed-fee portion of the cost-plus contract was justified and that pricing was reasonable.

Related Government Programs

Other Support Activities for Air Transportation
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competition.
No indication of small business participation.
Cost-plus contract structure shifts cost overrun risk to the government.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.4 million to BOEING SIKORSKY AIRCRAFT SUPPORT, LLC. REPAIRS/SPARES(PARTS)

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $82.4 million.

What is the period of performance?

Start: 2013-12-24. End: 2015-07-31.

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

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services, or in cases of urgent need. Without this information, it's impossible to fully assess the necessity of bypassing competition.

How does the cost-plus-fixed-fee structure impact pricing and risk for this contract?

A Cost-Plus-Fixed-Fee (CPFF) contract allows the contractor to recover all allowable costs plus a fixed fee representing profit. While it incentivizes the contractor to control costs, the government bears the risk of cost overruns. The fixed fee, however, is negotiated upfront, providing some predictability in profit.

What is the potential impact of this sole-source award on future pricing for similar aircraft parts?

A sole-source award can set a precedent and potentially lead to higher prices in the future if the supplier perceives less pressure to offer competitive rates. It limits the government's ability to leverage market competition to drive down costs for these essential aircraft parts.

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: $82,637,997

Exercised Options: $82,637,997

Current Obligation: $82,425,569

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9224113D0007

IDV Type: IDC

Timeline