DoD's $97.4M Boeing Sikorsky Contract for Air Transportation Support Lacks Competition

Contract Overview

Contract Amount: $97,356,641 ($97.4M)

Contractor: Boeing Sikorsky Aircraft Support, LLC

Awarding Agency: Department of Defense

Start Date: 2020-01-01

End Date: 2020-12-31

Contract Duration: 365 days

Daily Burn Rate: $266.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRAVEL

Place of Performance

Location: FORT CAMPBELL, MONTGOMERY County, TENNESSEE, 42223

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $97.4 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. Potential for higher costs due to lack of competition. 4. Contract awarded by U.S. Special Operations Command.

Value Assessment

Rating: questionable

The contract value of $97.4M for air transportation support is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in less favorable terms for the government.

Taxpayer Impact: The absence of competition raises concerns about the efficient use of taxpayer funds, as a more competitive process could potentially yield cost savings.

Public Impact

Taxpayers may be overpaying for essential air transportation support services. Lack of transparency in the procurement process. Special Operations Command's reliance on a single vendor for critical support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Specific support activity identified

Sector Analysis

The contract falls under 'Other Support Activities for Air Transportation'. Spending in this sector can vary widely, but sole-source awards for significant amounts warrant scrutiny to ensure value.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this sole-source award.

Oversight & Accountability

The sole-source nature of this contract suggests limited oversight in the initial award phase. Further review would be needed to assess ongoing performance and cost controls.

Related Government Programs

Other Support Activities for Air Transportation
Department of Defense Contracting
U.S. Special Operations Command Programs

Risk Flags

Lack of competition
Potential for overpricing
Limited transparency
Sole-source justification requires scrutiny

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $97.4 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 (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $97.4 million.

What is the period of performance?

Start: 2020-01-01. End: 2020-12-31.

What justification was provided for the sole-source award to Boeing Sikorsky Aircraft Support, LLC?

The justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without access to the specific justification documentation, it's impossible to definitively state the reasons, but it's a critical area for oversight.

What are the potential risks associated with a sole-source contract of this magnitude?

The primary risks of a sole-source contract of this magnitude include inflated pricing due to the absence of competitive pressure, potential for vendor complacency, and limited flexibility if requirements change. Taxpayers may not receive the best value for their money, and the government could be locked into a less-than-optimal arrangement.

How can the effectiveness of these air transportation support services be independently verified without competitive benchmarks?

Effectiveness can be verified through rigorous performance metrics, service level agreements (SLAs), and independent audits. The government should track key performance indicators (KPIs) related to timeliness, reliability, safety, and cost-efficiency. Regular reviews and comparisons against industry best practices, even without direct contract competition, can help assess performance.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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

Parent Company: THE Boeing Company

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: $97,356,641

Exercised Options: $97,356,641

Current Obligation: $97,356,641

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