DoD's $1.2B Boeing Sikorsky Contract for Special Operations Air Support Lacks Competition

Contract Overview

Contract Amount: $120,111,875 ($120.1M)

Contractor: Boeing Sikorsky Aircraft Support, LLC

Awarding Agency: Department of Defense

Start Date: 2023-06-15

End Date: 2026-12-31

Contract Duration: 1,295 days

Daily Burn Rate: $92.8K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FMS CLS

Place of Performance

Location: FORT CAMPBELL, CHRISTIAN County, KENTUCKY, 42223

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $120.1 million to BOEING SIKORSKY AIRCRAFT SUPPORT, LLC for work described as: FMS CLS Key points: 1. Significant contract value of over $1.2 billion awarded to a single vendor. 2. Lack of competition raises concerns about potential overpricing and reduced innovation. 3. Contract is for 'Other Support Activities for Air Transportation', a critical but potentially broad category. 4. Awarded to Boeing Sikorsky Aircraft Support, LLC, a major defense contractor.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can incentivize higher costs. Without competitive benchmarks, it's difficult to assess if the fixed fee and overall pricing are reasonable for the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was explicitly marked as 'NOT COMPETED'. This sole-source award bypasses the standard competitive bidding process, limiting price discovery and potentially leading to higher costs for taxpayers.

Taxpayer Impact: The absence of competition for a contract of this magnitude means taxpayers may not be receiving the best possible value for their investment.

Public Impact

Special Operations Forces rely on this support for critical air transportation services. The long duration (ending 2026) means potential inefficiencies could persist for years. Lack of transparency in pricing due to sole-source award impacts public trust. Dependence on a single contractor for essential services poses a strategic risk.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus contract type
Long contract duration
No small business participation noted

Positive Signals

Supports critical Special Operations Command needs
Awarded to a known, experienced contractor

Sector Analysis

This contract falls under general aviation support services, a sector often characterized by specialized needs and long-term relationships. Benchmarks for similar large-scale, sole-source support contracts are difficult to establish due to their unique nature.

Small Business Impact

The data indicates no small business participation (sb: false). This suggests that opportunities for small businesses to contribute to this significant defense contract were not pursued or identified.

Oversight & Accountability

The sole-source nature of this award warrants close oversight from the Department of Defense and Congress to ensure fair pricing and effective service delivery. Transparency regarding the justification for not competing the contract is crucial.

Related Government Programs

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

Risk Flags

Lack of competition
Sole-source award
Cost-plus contract type
No small business participation
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $120.1 million to BOEING SIKORSKY AIRCRAFT SUPPORT, LLC. FMS CLS

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 $120.1 million.

What is the period of performance?

Start: 2023-06-15. End: 2026-12-31.

What specific justification was provided for not competing this $1.2 billion contract, and how does the government ensure fair pricing under a Cost Plus Fixed Fee arrangement without competitive press

The justification for not competing the contract is not detailed in the provided data. Typically, sole-source awards require a documented justification, such as a lack of available sources or urgent need. For Cost Plus Fixed Fee contracts, the government aims to ensure fair pricing by establishing a reasonable fixed fee based on estimated costs and profit, and through ongoing monitoring and audits of the contractor's actual costs.

What are the potential risks associated with relying on a single contractor for critical air transportation support for U.S. Special Operations Command over a period of more than three years?

The primary risks include potential price escalation due to the lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a significant vulnerability if the sole contractor experiences performance issues, financial instability, or supply chain disruptions. This dependence could also limit the government's flexibility in adapting to changing operational requirements.

How does the government measure the effectiveness and value for money of 'Other Support Activities for Air Transportation' provided under this sole-source contract, especially given the Cost Plus Fixe

Effectiveness is typically measured through performance metrics and key performance indicators (KPIs) outlined in the contract, such as aircraft availability, response times, and mission support success rates. Value for money is harder to assess without competition, but the government relies on robust contract administration, audits of incurred costs, and comparison to any available historical data or industry benchmarks to ensure the fixed fee and cost reimbursements are reasonable.

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: COST PLUS FIXED FEE (U)

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: $120,111,875

Exercised Options: $120,111,875

Current Obligation: $120,111,875

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