DoD's $108M Boeing/Sikorsky contract for air transportation support lacked competition, raising cost concerns

Contract Overview

Contract Amount: $108,353,721 ($108.4M)

Contractor: Boeing Sikorsky Aircraft Support, LLC

Awarding Agency: Department of Defense

Start Date: 2019-01-01

End Date: 2019-12-31

Contract Duration: 364 days

Daily Burn Rate: $297.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TRAVEL

Place of Performance

Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $108.4 million to BOEING SIKORSKY AIRCRAFT SUPPORT, LLC for work described as: TRAVEL Key points: 1. Significant spending on air transportation support services. 2. Sole-source award to Boeing/Sikorsky Aircraft Support, LLC. 3. Contract duration of 364 days. 4. Firm Fixed Price contract type. 5. No small business participation noted.

Value Assessment

Rating: questionable

The contract value of $108.35M for a year of air transportation support is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were considered. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition in this large contract may result in the government overpaying for essential air transportation support services.

Public Impact

Taxpayers may be footing a higher bill due to the absence of competitive bidding. Limited visibility into the specific services provided under 'Other Support Activities for Air Transportation'. Reliance on a single contractor for critical support functions could pose a risk.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
No small business participation
High contract value

Positive Signals

Firm Fixed Price contract type can provide cost certainty if priced competitively.

Sector Analysis

This contract falls under 'Other Support Activities for Air Transportation,' a niche within the broader aerospace and defense sector. Spending benchmarks for such specific support services are hard to establish without competitive data.

Small Business Impact

The data indicates no small business participation in this contract. This is a missed opportunity to support small businesses and potentially leverage their specialized capabilities and competitive pricing.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and adequate justification for not seeking competitive proposals. Oversight should focus on the necessity of this approach.

Related Government Programs

Other Support Activities for Air Transportation
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Potential for overpayment
No small business involvement
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $108.4 million to BOEING SIKORSKY AIRCRAFT SUPPORT, LLC. TRAVEL

Who is the contractor on this award?

The obligated recipient is BOEING SIKORSKY AIRCRAFT SUPPORT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $108.4 million.

What is the period of performance?

Start: 2019-01-01. End: 2019-12-31.

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

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without further documentation, it's impossible to determine the specific rationale. This lack of transparency hinders an assessment of the necessity and potential cost savings from competition.

How does the $108M price compare to industry benchmarks for similar air transportation support services?

Direct comparison is challenging due to the sole-source nature and specific service definition. However, for contracts of this magnitude, competitive bidding typically yields savings of 10-30%. The absence of competition suggests this contract may be priced above market rates, impacting overall value for money.

What are the potential risks associated with a sole-source contract of this duration and value?

Key risks include inflated pricing, reduced service quality due to lack of competitive pressure, and vendor lock-in. The government may also miss out on innovative solutions or cost efficiencies offered by other qualified vendors. Long-term reliance on a single provider can also create dependency.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: H9224116R0004

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7244B NIGHTSTALKER WAY, FORT CAMPBELL, KY, 42223

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $108,353,721

Exercised Options: $108,353,721

Current Obligation: $108,353,721

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: H9224119D0003

IDV Type: IDC

Timeline