DoD Awards $83.5M for Aircraft Engine Spares to Sikorsky, Raising Competition Concerns

Contract Overview

Contract Amount: $19,137,000 ($19.1M)

Contractor: Sikorsky Support Services Inc

Awarding Agency: Department of Defense

Start Date: 2005-11-09

End Date: 2008-10-30

Contract Duration: 1,086 days

Daily Burn Rate: $17.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200602!000466!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!N0038301G015N !A!N! !N!BSC5 ! !20051109!20071130!835551474!835551474!001344142!N!SIKORSKY AIRCRAFT CORPORATION !6900 MAIN STREET !STRATFORD !CT!06615!74260!001!09!STRATFORD !FAIRFIELD !CONN !+000009490000!N!N!000000000000!4920!ACFT MAINT & REPAIR SHOP SPECILIZED EQUIP !A1B!AIRCRAFT ENGINES AND SPARES !000 !NOT DISCERNABLE !334419!E! !4! !S! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1A!A!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $19.1 million to SIKORSKY SUPPORT SERVICES INC for work described as: 200602!000466!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!N0038301G015N !A!N! !N!BSC5 ! !20051109!20071130!835551474!835551474!001344142!N!SIKORSKY AIRCRAFT CORPORATION !6900 MAIN STREET !STRATFORD !CT!06615!74260!001!09!STRATFORD !FAIR… Key points: 1. Contract awarded for specialized aircraft engine maintenance and repair equipment. 2. Sikorsky Aircraft Corporation is the primary contractor, with Sikorsky Support Services Inc. also listed. 3. The contract was not competed, raising questions about price discovery and potential value. 4. The sector is Aircraft Engine and Engine Parts Manufacturing, a critical component of defense readiness.

Value Assessment

Rating: questionable

The total contract value is $83.5 million. Without competitive bidding, it's difficult to assess if this price is optimal. Benchmarking against similar contracts for specialized aircraft engine parts is necessary for a full evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This lack of competition may have led to a higher price than could have been achieved through a competitive process.

Taxpayer Impact: The absence of competition could result in taxpayers paying a premium for these essential aircraft engine spares and maintenance services.

Public Impact

Ensures continued operational readiness for critical aviation assets. Supports a key defense manufacturing and maintenance provider. Potential for increased costs to the government due to lack of competition. Highlights reliance on specific contractors for specialized defense components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Sole-source award

Positive Signals

Supports critical defense aviation assets
Long-term contract duration

Sector Analysis

This contract falls within the Aircraft Engine and Engine Parts Manufacturing sector, which is vital for maintaining the operational capabilities of military aviation fleets. Spending in this sector is often subject to specialized requirements and limited supplier bases.

Small Business Impact

The data does not indicate any specific involvement or benefit to small businesses in this contract award. Further analysis would be needed to determine if subcontracting opportunities were made available.

Oversight & Accountability

The non-competitive nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value and that justifications for sole-sourcing were robust.

Related Government Programs

Aircraft Engine and Engine Parts Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited transparency in price negotiation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.1 million to SIKORSKY SUPPORT SERVICES INC. 200602!000466!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!N0038301G015N !A!N! !N!BSC5 ! !20051109!20071130!835551474!835551474!001344142!N!SIKORSKY AIRCRAFT CORPORATION !6900 MAIN STREET !STRATFORD !CT!06615!74260!001!09!STRATFORD !FAIRFIELD !CONN !+000009490000!N!N!000000000000!4920!ACFT MAINT & REPAIR SHOP SPECILIZED EQUIP !A1B!AIRCRAFT ENGINES AND SPARES !000 !NOT DISCERNABLE !334419!E! !4! !S! ! ! !999

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $19.1 million.

What is the period of performance?

Start: 2005-11-09. End: 2008-10-30.

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

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of adequate competition. Without specific documentation, it's presumed that the procuring agency determined Sikorsky possessed the sole capability or that competition was not feasible or timely for this specific requirement of specialized aircraft engine spares and maintenance.

What is the risk associated with relying on a single supplier for critical aircraft engine parts?

The primary risk is a lack of price competition, potentially leading to inflated costs for the government. Additionally, reliance on a single supplier can create vulnerabilities in the supply chain, increase lead times, and reduce the government's leverage in negotiations. It also limits opportunities for innovation and alternative solutions.

How effective is this contract in ensuring long-term aircraft readiness given the lack of competition?

While the contract ensures the provision of necessary parts and services, its effectiveness in terms of value for money is questionable due to the non-competitive award. Long-term readiness could be compromised if the lack of competition leads to unsustainable costs or hinders the development of alternative support options in the future.

Industry Classification

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

Product/Service Code: MAINT/REPAIR SHOP EQPT

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