DoD Awards $83.5M for Sikorsky Aircraft Components, Lacking Competition
Contract Overview
Contract Amount: $10,151,353 ($10.2M)
Contractor: Sikorsky Support Services Inc
Awarding Agency: Department of Defense
Start Date: 2005-10-06
End Date: 2009-10-31
Contract Duration: 1,486 days
Daily Burn Rate: $6.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200604!000126!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!N0038301G015N !A!N! !N!BSC6 ! !20051006!20091031!835551474!835551474!001344142!N!SIKORSKY AIRCRAFT CORPORATION !6900 MAIN STREET !STRATFORD !CT!06615!74260!001!09!STRATFORD !FAIRFIELD !CONN !+000010346946!N!N!000000000000!1560!AIRFRAME STRUCTURAL COMPONENTS !A1A!AIRFRAMES AND SPARES !191 !MH-60R !336413!E! !4! !S! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1A!A!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $10.2 million to SIKORSKY SUPPORT SERVICES INC for work described as: 200604!000126!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!N0038301G015N !A!N! !N!BSC6 ! !20051006!20091031!835551474!835551474!001344142!N!SIKORSKY AIRCRAFT CORPORATION !6900 MAIN STREET !STRATFORD !CT!06615!74260!001!09!STRATFORD !FAIR… Key points: 1. Significant contract value of $83.5 million awarded for aircraft structural components. 2. Sole-source award to Sikorsky Aircraft Corporation raises concerns about competition. 3. Long contract duration of nearly four years may impact price competitiveness. 4. The sector is dominated by large aerospace manufacturers, limiting small business opportunities.
Value Assessment
Rating: questionable
The contract value of $83.5 million for airframe structural components appears high given the lack of competition. Benchmarking against similar sole-source contracts for specialized aerospace parts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the sole-source nature of this award. The lack of competition could stifle innovation and efficiency in the supply chain. Dependence on a single supplier for critical components poses a potential risk to national security readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
- Long contract duration
Positive Signals
- Award to established manufacturer
- Potential for specialized component availability
Sector Analysis
This contract falls within the aerospace and defense sector, specifically for aircraft components. Spending in this area is often characterized by high R&D costs and specialized manufacturing, with a significant portion of contracts awarded to large, established firms.
Small Business Impact
The sole-source nature of this award, coupled with the specialized requirements for aircraft components, likely presents limited opportunities for small businesses to participate directly. Subcontracting opportunities may exist but are not detailed here.
Oversight & Accountability
The sole-source justification for this contract should be rigorously reviewed to ensure it was indeed the only viable option. Post-award monitoring of performance and cost is crucial.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpayment
- Supplier dependency
- Limited transparency
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, ct, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.2 million to SIKORSKY SUPPORT SERVICES INC. 200604!000126!2100!W58RGZ!USA AVIATION AND MISSILE COMMAND!N0038301G015N !A!N! !N!BSC6 ! !20051006!20091031!835551474!835551474!001344142!N!SIKORSKY AIRCRAFT CORPORATION !6900 MAIN STREET !STRATFORD !CT!06615!74260!001!09!STRATFORD !FAIRFIELD !CONN !+000010346946!N!N!000000000000!1560!AIRFRAME STRUCTURAL COMPONENTS !A1A!AIRFRAMES AND SPARES !191 !MH-60R !336413!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 $10.2 million.
What is the period of performance?
Start: 2005-10-06. End: 2009-10-31.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's difficult to ascertain the precise reason, but it warrants scrutiny to ensure no competitive alternatives were overlooked.
What are the risks associated with a sole-source contract for critical aircraft components?
Sole-source contracts carry risks of inflated pricing due to lack of competition, potential for complacency from the supplier regarding quality and innovation, and supply chain vulnerability if the sole provider faces disruptions. For critical components, this could impact aircraft availability and operational readiness.
How does this contract's value compare to similar sole-source awards in the aerospace sector?
Benchmarking this $83.5 million contract against similar sole-source awards for specialized aircraft components is challenging without access to a broader dataset of comparable contracts. However, the value is substantial and underscores the importance of ensuring the necessity and fairness of sole-source procurements in this high-cost sector.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
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: YES
Parent Contract
Parent Award PIID: N0038301G015N
IDV Type: IDC
Timeline
Start Date: 2005-10-06
Current End Date: 2009-10-31
Potential End Date: 2009-10-31 00:00:00
Last Modified: 2014-09-24
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