DoD Awards $835M for Blackhawk Helicopter Airframes and Spares to Sikorsky Aircraft Corporation
Contract Overview
Contract Amount: $285,356,315 ($285.4M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2001-05-02
End Date: 2007-02-13
Contract Duration: 2,113 days
Daily Burn Rate: $135.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: 200303!001149!2100!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2301C0053 !A!N! !N!P00040 !20021204!20030730!835551474!835551474!001344142!N!SIKORSKY AIRCRAFT CORPORATION !6900 MAIN STREET !STRATFORD !CT!06615!74260!001!09!STRATFORD !FAIRFIELD !CONN !+000010092000!N!N!000000000000!1520!AIRCRAFT ROTARY WING !A1A!AIRFRAMES AND SPARES !1AIA!BLACKHAWK (UH-60) UTTAS !541710!E! !3! ! !C! ! !99990909!B! ! !A! !D!N!R!1!001!N!1G!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $285.4 million to SIKORSKY AIRCRAFT CORPORATION for work described as: 200303!001149!2100!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2301C0053 !A!N! !N!P00040 !20021204!20030730!835551474!835551474!001344142!N!SIKORSKY AIRCRAFT CORPORATION !6900 MAIN STREET !STRATFORD !CT!06615!74260!001!09!STRATFORD !FAIRFIELD !CONN !+000010092000!N!N!000000000000!… Key points: 1. Contract awarded to Sikorsky Aircraft Corporation for Blackhawk helicopter components. 2. Significant award value of $835,551,474 over a period of approximately 5 years. 3. Contract type is Cost Plus Award Fee, indicating potential for performance-based incentives. 4. The procurement falls under Research and Development in Physical, Engineering, and Life Sciences. 5. No small business participation noted in the contract details.
Value Assessment
Rating: good
The total award value is $835,551,474. The contract was awarded in 2002 and completed in 2007. Without specific per-unit cost data or comparison points, a precise value assessment is difficult, but the scale suggests a substantial investment in critical aviation components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, suggesting a limited competition approach. This could be due to specialized requirements or existing relationships. The lack of full and open competition may impact price discovery and potentially lead to higher costs.
Taxpayer Impact: The substantial award value indicates a significant taxpayer investment. The 'limited' competition status raises questions about whether the best possible price was achieved for the government.
Public Impact
Ensures continued availability of critical Blackhawk helicopter parts for military operations. Supports a major defense contractor and its associated supply chain. Potential impact on readiness and operational capabilities of aviation units relying on Blackhawk helicopters.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may result in suboptimal pricing.
- Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed tightly.
- No small business participation noted.
Positive Signals
- Secures essential components for a key military asset.
- Long-term contract provides stability for the supplier.
- Potential for performance incentives through the award fee structure.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft components. Spending benchmarks in this area are highly variable, depending on the specific aircraft, technology, and contract type. The value of this contract is significant for airframes and spares.
Small Business Impact
The contract data indicates no small business participation. This suggests that the prime contractor, Sikorsky Aircraft Corporation, likely handled the entire scope of work or subcontracted to other large businesses, bypassing opportunities for small business involvement.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve program management offices ensuring contract compliance, performance, and financial accountability throughout the contract lifecycle.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may lead to higher costs.
- Potential for cost overruns with Cost Plus Award Fee contracts.
- Lack of small business participation.
- Contract duration of over 4 years requires sustained oversight.
Tags
research-and-development-in-the-physical, department-of-defense, ct, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $285.4 million to SIKORSKY AIRCRAFT CORPORATION. 200303!001149!2100!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2301C0053 !A!N! !N!P00040 !20021204!20030730!835551474!835551474!001344142!N!SIKORSKY AIRCRAFT CORPORATION !6900 MAIN STREET !STRATFORD !CT!06615!74260!001!09!STRATFORD !FAIRFIELD !CONN !+000010092000!N!N!000000000000!1520!AIRCRAFT ROTARY WING !A1A!AIRFRAMES AND SPARES !1AIA!BLACKHAWK (UH-60) UTTAS !541710!E! !3! ! !C! ! !99990909!B! ! !A! !D!N!R!1!001!N!1G!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Who is the contractor on this award?
The obligated recipient is SIKORSKY AIRCRAFT CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $285.4 million.
What is the period of performance?
Start: 2001-05-02. End: 2007-02-13.
What was the rationale for limiting competition on this significant Blackhawk helicopter component contract?
The rationale for limiting competition is not explicitly detailed in the provided data. Typically, limited competition might be justified by factors such as the unique capabilities of a specific contractor, urgent need, or the existence of only one responsible source. Further investigation into the contract file or justification for other than full and open competition would be required to ascertain the precise reasons.
How effectively did the Cost Plus Award Fee structure incentivize performance and control costs for Sikorsky Aircraft Corporation?
The effectiveness of the Cost Plus Award Fee (CPAF) structure hinges on the clarity and attainability of the award criteria and the rigor of the government's performance evaluation. Without access to the specific award criteria and the actual award amounts paid, it's impossible to definitively assess cost control and performance incentives. A review of performance reports and final award fees would be necessary.
What was the long-term impact of this $835M contract on the operational readiness of the Blackhawk helicopter fleet?
This contract, valued at over $835 million, likely played a crucial role in ensuring the continued availability of airframes and spares for the Blackhawk helicopter fleet. By securing these components, the contract would have directly supported the maintenance, repair, and operational readiness of these vital aircraft, contributing to the overall effectiveness of Army aviation units.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 6900 MAIN STREET, STRATFORD, CT, 06615
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2001-05-02
Current End Date: 2007-02-13
Potential End Date: 2015-01-26 00:00:00
Last Modified: 2015-06-26
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