Coast Guard awards $2.2M for MH-60T helicopter main gearboxes to Sikorsky Aircraft Corporation

Contract Overview

Contract Amount: $2,232,247 ($2.2M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-20

End Date: 2029-08-12

Contract Duration: 1,300 days

Daily Burn Rate: $1.7K/day

Competition Type: NOT COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF MAIN GEARBOXES FOR USE ON MH60T AIRCRAFT.

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.2 million to SIKORSKY AIRCRAFT CORPORATION for work described as: PROCUREMENT OF MAIN GEARBOXES FOR USE ON MH60T AIRCRAFT. Key points: 1. Contract awarded to incumbent supplier suggests potential for sole-source arrangements. 2. Limited competition may impact price competitiveness and taxpayer value. 3. Long contract duration (over 5 years) warrants close performance monitoring. 4. Fixed-price contract type shifts risk to the contractor. 5. This procurement supports critical aviation readiness for the U.S. Coast Guard. 6. Geographic concentration in Connecticut for this specific component.

Value Assessment

Rating: fair

The contract value of $2.23 million for main gearboxes appears reasonable for specialized aviation components. However, without direct comparisons to similar procurements for MH-60T gearboxes or alternative aircraft, a definitive value-for-money assessment is challenging. The fixed-price nature of the contract provides cost certainty for the government, but the lack of competition raises concerns about whether the best possible price was achieved. Benchmarking against industry standards for similar complex aerospace parts would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures, indicating a sole-source or limited competition award. Sikorsky Aircraft Corporation is the incumbent supplier for these components, suggesting a continuation of an existing relationship. The lack of open competition means potential bidders were not solicited, which can limit price discovery and potentially lead to higher costs for the government compared to a fully competed scenario.

Taxpayer Impact: The absence of robust competition means taxpayers may not be benefiting from the most cost-effective pricing available in the market. This could result in a higher overall expenditure for essential aircraft parts.

Public Impact

The U.S. Coast Guard benefits through the continued availability of critical components for its MH-60T helicopters. This ensures the operational readiness of aircraft used for maritime security, search and rescue, and law enforcement missions. The primary geographic impact is within Connecticut, where Sikorsky Aircraft Corporation is located. The contract supports specialized manufacturing jobs within the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Potential for vendor lock-in with sole-source awards.
Long-term contract duration requires sustained oversight to ensure performance.

Positive Signals

Fixed-price contract shifts cost risk to the contractor.
Award to incumbent supplier ensures continuity of supply for critical parts.
Procurement supports essential Coast Guard aviation capabilities.

Sector Analysis

This contract falls within the aerospace manufacturing sector, specifically focusing on aircraft parts. The market for specialized helicopter components like main gearboxes is often concentrated among a few key manufacturers due to high technical barriers to entry and proprietary designs. Spending on such components is critical for maintaining the operational readiness of military and government aviation fleets. Comparable spending benchmarks would typically involve analyzing historical procurement data for similar high-value, low-volume aerospace parts.

Small Business Impact

The data indicates this contract was not competed under SAP and the small business set-aside flag is false. There is no explicit information regarding subcontracting plans for small businesses. Given the specialized nature of aerospace manufacturing and the likely sole-source award to a large corporation, the direct impact on the small business ecosystem may be limited unless subcontracting opportunities are actively pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard's contracting and program management offices. Accountability measures are inherent in the fixed-price contract type, which obligates the contractor to deliver specified goods. Transparency is generally maintained through contract databases, though the specifics of the sole-source justification would be key. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

MH-60T Helicopter Maintenance
Aviation Component Procurement
U.S. Coast Guard Aviation Fleet Support
Aerospace Parts Manufacturing Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for price inflation

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.2 million to SIKORSKY AIRCRAFT CORPORATION. PROCUREMENT OF MAIN GEARBOXES FOR USE ON MH60T AIRCRAFT.

Who is the contractor on this award?

The obligated recipient is SIKORSKY AIRCRAFT CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2026-01-20. End: 2029-08-12.

What is Sikorsky Aircraft Corporation's track record with the U.S. Coast Guard and similar entities for MH-60T components?

Sikorsky Aircraft Corporation, a subsidiary of Lockheed Martin, has a long-standing relationship with the U.S. military and government agencies, including the U.S. Coast Guard, as the original equipment manufacturer for the MH-60T helicopter. Their track record typically involves providing a range of components, maintenance, and support services. For MH-60T main gearboxes specifically, Sikorsky is the likely sole source due to proprietary designs and manufacturing expertise. Historical data would likely show consistent delivery and performance, but also potentially higher costs associated with sole-source arrangements compared to competitive bids. Assessing their performance on past contracts would involve reviewing delivery timelines, quality metrics, and any documented issues or disputes.

How does the $2.23 million contract value compare to historical spending on MH-60T main gearboxes?

Direct historical spending comparisons for this specific contract are difficult without access to detailed procurement history databases. However, given the specialized nature and complexity of main gearboxes for a medium-lift helicopter like the MH-60T, a value of $2.23 million for multiple units or a multi-year supply seems plausible within the aerospace industry. If this represents a single unit or a small batch, it might be on the higher end. The lack of competition suggests this price may not be benchmarked against market alternatives, potentially making it higher than if it were competitively procured. Further analysis would require examining prior delivery orders or contracts for the same item from the U.S. Coast Guard or other MH-60T operators.

What are the primary risks associated with this sole-source procurement of aircraft components?

The primary risks associated with this sole-source procurement are related to cost and potential lack of innovation. Without competition, Sikorsky Aircraft Corporation faces less pressure to offer the most competitive pricing, potentially leading to higher costs for the U.S. Coast Guard and taxpayers. There's also a risk of vendor lock-in, where the government becomes dependent on a single supplier, making future procurements difficult and potentially more expensive. Furthermore, the absence of competitive pressure might reduce the incentive for the contractor to innovate or improve efficiency. Long-term sustainment and availability of parts could also be a concern if the sole-source provider faces financial difficulties or strategic shifts.

How effective is the fixed-price contract type in managing costs and performance for this procurement?

The Firm Fixed Price (FFP) contract type is generally effective in managing costs and performance by shifting the majority of the cost risk to the contractor, Sikorsky Aircraft Corporation. This means the government agrees to pay a set price regardless of the contractor's actual costs. This provides budget certainty for the U.S. Coast Guard. For performance, the FFP contract incentivizes the contractor to meet the delivery schedule and quality specifications to maximize their profit margin. However, the effectiveness is somewhat diminished by the sole-source nature; while the price is fixed, it may not be the most competitive price achievable. The government still needs robust oversight to ensure the contractor meets all contractual requirements.

What are the implications of awarding this contract to Sikorsky Aircraft Corporation in Connecticut for the broader aerospace supply chain?

Awarding this contract to Sikorsky Aircraft Corporation, located in Connecticut, reinforces the existing supply chain for MH-60T components within that region. It supports specialized manufacturing jobs and maintains the technological expertise associated with helicopter component production. For the broader aerospace supply chain, this signifies continued demand for high-value, complex parts. However, it also highlights the concentration of such specialized manufacturing capabilities within a few key companies and geographic areas. The lack of broader competition might limit opportunities for other potential suppliers or subcontractors in different regions to enter the market for these specific components.

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 UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z03822QJ0000231

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 6900 MAIN ST, STRATFORD, CT, 03

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,232,247

Exercised Options: $2,232,247

Current Obligation: $2,232,247

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z03823DJ0000007

IDV Type: IDC

Timeline