Coast Guard awards $141.5M for MH-60T aircraft parts, with Sikorsky Aircraft Corporation as the sole provider

Contract Overview

Contract Amount: $141,530 ($141.5K)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-09

End Date: 2028-03-04

Contract Duration: 695 days

Daily Burn Rate: $204/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURCHASE OF VARIOUS ITEMS TO BE UTILIZED ON USCG MH-60T AIRCRAFT.

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Homeland Security obligated $141,530.08 to SIKORSKY AIRCRAFT CORPORATION for work described as: PURCHASE OF VARIOUS ITEMS TO BE UTILIZED ON USCG MH-60T AIRCRAFT. Key points: 1. This contract focuses on essential parts for the MH-60T helicopter, a critical asset for the U.S. Coast Guard's operations. 2. The award to Sikorsky Aircraft Corporation suggests a reliance on the original equipment manufacturer for specialized components. 3. The firm-fixed-price contract type aims to provide cost certainty for the government. 4. The duration of the contract extends over multiple years, indicating a long-term need for these parts. 5. The absence of competition raises questions about potential cost efficiencies and alternative sourcing.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparisons to similar sole-source procurements for specialized aviation parts. The $141.5 million award over its period of performance represents a significant investment. However, the lack of competitive bidding means there's no direct market price discovery to assess if this represents optimal value for money compared to potentially lower prices achievable through a competitive process. Further analysis would require understanding the specific nature of the parts and their criticality to aircraft readiness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and is listed as 'NOT COMPETED UNDER SAP'. The data indicates a sole-source award, meaning only one vendor, Sikorsky Aircraft Corporation, was solicited or capable of providing the required items. This approach is often taken when a specific manufacturer's parts are required for unique equipment, such as proprietary aircraft components, to ensure compatibility and maintain operational integrity.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. This limits the government's ability to leverage market forces for better value.

Public Impact

The U.S. Coast Guard's MH-60T aircraft fleet will benefit from the availability of necessary parts, ensuring operational readiness. These parts are crucial for maintaining the airworthiness and functionality of helicopters used in search and rescue, maritime law enforcement, and interdiction missions. The contract's impact is primarily national, supporting the Coast Guard's broad mission across U.S. waters and international areas. A consistent supply chain for these components supports the specialized aviation maintenance workforce within the Coast Guard and its contractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Sole-source nature limits opportunities for new market entrants or alternative suppliers.
Dependence on a single supplier can create supply chain risks if the supplier faces production issues.

Positive Signals

Ensures availability of critical, potentially proprietary, parts for essential Coast Guard aircraft.
Firm-fixed-price contract provides cost predictability for the government.
Long-term award supports sustained operational capability of the MH-60T fleet.

Sector Analysis

The aerospace and defense sector, specifically the manufacturing of aircraft parts, is characterized by high technological barriers to entry and stringent quality requirements. This contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing.' The market for specialized helicopter components is often dominated by original equipment manufacturers (OEMs) like Sikorsky due to proprietary designs and maintenance requirements. Spending in this sub-sector is driven by fleet modernization, sustainment, and operational demands of military and governmental aviation assets.

Small Business Impact

This contract does not appear to include a small business set-aside. Given the sole-source nature and the likely specialized requirements for MH-60T aircraft parts, it is improbable that small businesses would be primary recipients or subcontractors unless they are part of Sikorsky's established supply chain. Further investigation into subcontracting plans would be needed to assess any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard, a component of the Department of Homeland Security. The contract's performance and delivery will be monitored by contracting officers and program managers. Transparency regarding the justification for the sole-source award and the pricing structure would be key to assessing accountability. While specific Inspector General (IG) involvement isn't detailed, the DHS OIG has broad jurisdiction over departmental spending.

Related Government Programs

USCG MH-60T Helicopter Sustainment
Aviation Parts Procurement
Department of Homeland Security Aviation Contracts
Sole-Source Aircraft Component Awards

Risk Flags

Sole-source award
Lack of competition
Potential for higher costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $141,530.08 to SIKORSKY AIRCRAFT CORPORATION. PURCHASE OF VARIOUS ITEMS TO BE UTILIZED ON USCG MH-60T 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 $141,530.08.

What is the period of performance?

Start: 2026-04-09. End: 2028-03-04.

What is the historical spending pattern for MH-60T aircraft parts from Sikorsky Aircraft Corporation?

Analyzing historical spending for MH-60T parts from Sikorsky requires access to detailed contract databases and procurement histories. Without specific historical data for this particular contract vehicle or related sole-source awards, it's difficult to establish a precise pattern. However, it is common for the original equipment manufacturer (OEM) of complex aircraft like the MH-60T to be the primary, and often sole, source for critical replacement parts throughout the aircraft's lifecycle. This typically involves recurring awards for parts, maintenance, and support services, often valued in the millions or tens of millions annually, depending on fleet size and operational tempo. The current $141.5 million award suggests a significant, multi-year procurement effort for a substantial quantity or variety of parts.

How does the pricing of these MH-60T parts compare to similar sole-source aviation component contracts?

Direct comparison of pricing for sole-source aviation components is inherently difficult due to the proprietary nature of the parts and the lack of competitive benchmarking. However, sole-source awards are generally expected to be at a premium compared to competitively sourced items. To assess value, one would typically look at the contractor's cost proposals, historical pricing trends for similar parts (if available), and industry benchmarks for aviation maintenance, repair, and overhaul (MRO). The $141.5 million award over approximately two years implies an average annual spend of over $70 million. Without detailed cost breakdowns or access to Sikorsky's pricing structure for these specific parts, a definitive value assessment against comparable sole-source contracts is not feasible from the provided data alone. The firm-fixed-price structure does, however, offer some cost certainty.

What are the primary risks associated with this sole-source contract for the U.S. Coast Guard?

The primary risks associated with this sole-source contract are financial and operational. Financially, the lack of competition means the U.S. Coast Guard (USCG) may be paying a higher price than could be achieved through a competitive bidding process. This limits the government's ability to leverage market forces for cost savings. Operationally, there's a risk of supply chain disruption if Sikorsky Aircraft Corporation encounters production issues, labor strikes, or other challenges that impact their ability to deliver the required parts on time. This dependence on a single supplier can also lead to less favorable contract terms over time, as the government has limited leverage for negotiation. Ensuring robust contract management and performance monitoring is crucial to mitigate these risks.

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

The justification for awarding this contract on a sole-source basis likely stems from the specialized and proprietary nature of the parts required for the U.S. Coast Guard's MH-60T aircraft. Sikorsky Aircraft Corporation, as the original equipment manufacturer (OEM), typically holds the intellectual property rights and possesses the unique manufacturing capabilities for these specific components. Often, these parts are critical for maintaining the airworthiness and operational integrity of the aircraft, and alternative suppliers may not exist or may not be certified to produce parts that meet stringent military or aviation standards. The government may have determined that soliciting competitive bids would be impractical or would not result in a better value due to the unique technical requirements and the limited number of qualified sources.

How does this contract contribute to the overall readiness and operational capability of the MH-60T fleet?

This contract is fundamental to maintaining the operational readiness and capability of the U.S. Coast Guard's MH-60T helicopter fleet. The MH-60T is a versatile platform used for critical missions such as search and rescue, maritime law enforcement, counter-narcotics operations, and homeland security patrols. By ensuring a steady supply of necessary parts, this contract directly supports the airworthiness and operational availability of these aircraft. Without timely access to these components, the Coast Guard's ability to deploy and sustain its MH-60T fleet would be compromised, potentially impacting its capacity to respond to emergencies and fulfill its diverse mission requirements across various operational environments.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: ENGINE ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z03825QJ0000310

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 6900 MAIN ST, STRATFORD, CT, 06614

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: $141,530

Exercised Options: $141,530

Current Obligation: $141,530

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SPE4A122G0005

IDV Type: BOA

Timeline