DoD's $125M Boeing Sikorsky contract for technical data publications awarded without competition

Contract Overview

Contract Amount: $125,172,853 ($125.2M)

Contractor: Boeing Sikorsky Aircraft Support, LLC

Awarding Agency: Department of Defense

Start Date: 2024-01-01

End Date: 2025-01-01

Contract Duration: 366 days

Daily Burn Rate: $342.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TECHNICAL DATA PUBLICATIONS ODC'S

Place of Performance

Location: FORT CAMPBELL, MONTGOMERY County, TENNESSEE, 42223

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $125.2 million to BOEING SIKORSKY AIRCRAFT SUPPORT, LLC for work described as: TECHNICAL DATA PUBLICATIONS ODC'S Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential for overpayment. 2. The contract covers technical data publications, a critical but often opaque area of defense spending. 3. Performance period is one year, suggesting a need for ongoing support for aircraft systems. 4. The award is a delivery order under a larger contract, details of which are not provided. 5. No small business set-aside was applied, indicating potential missed opportunities for smaller firms. 6. The contract type is Firm Fixed Price, which shifts some risk to the contractor but requires careful baseline setting.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without access to the base contract or comparable sole-source awards for technical data publications. The $125 million value for a one-year period for 'Other Support Activities for Air Transportation' appears substantial. Without competition, it's difficult to assess if the pricing reflects fair market value or if there are opportunities for cost savings through competitive bidding. The lack of transparency inherent in sole-source awards makes a definitive value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source can provide the required supplies or services. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms. It also raises concerns about whether alternative solutions or more cost-effective providers were adequately explored.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This contract's value suggests a significant potential for increased expenditure compared to a competed scenario.

Public Impact

U.S. Special Operations Command (SOCOM) personnel benefit from access to critical technical data for aircraft operations and maintenance. Services delivered include the provision of technical data publications, essential for ensuring the safe and effective operation of aircraft. The geographic impact is likely global, supporting SOCOM's worldwide operational requirements. Workforce implications may include reliance on specialized personnel within SOCOM and its support contractors to utilize and interpret the technical data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases costs for taxpayers.
Lack of transparency in the sole-source justification makes it difficult to assess true value for money.
No small business participation noted, potentially excluding smaller, innovative firms from contributing.
The specific nature of 'technical data publications' can be a black box, making oversight challenging.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government, assuming the baseline is accurate.
Awarding to Boeing Sikorsky Aircraft Support, LLC suggests leveraging established expertise with specific aircraft platforms.
The contract duration of one year allows for regular review and potential re-competition or modification.
The contract supports U.S. Special Operations Command, indicating a focus on critical national security missions.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on support services for aircraft. The market for technical data publications is specialized, often dominated by original equipment manufacturers (OEMs) or their authorized partners due to intellectual property rights and the need for highly accurate, platform-specific information. Spending in this area is crucial for maintaining complex military aviation assets, and while specific benchmarks for technical data publication contracts are scarce, overall aerospace support services represent a significant portion of defense budgets.

Small Business Impact

This contract does not appear to include a small business set-aside. The award to a large, established contractor like Boeing Sikorsky Aircraft Support, LLC suggests that subcontracting opportunities for small businesses may be limited, unless explicitly mandated by the prime contractor. This could represent a missed opportunity to foster small business participation in a significant defense contract, potentially impacting the small business ecosystem within the aerospace support sector.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Special Operations Command (SOCOM) contracting and program management offices. Accountability measures would be tied to the delivery of technical data publications as specified in the contract terms. Transparency is limited due to the sole-source nature of the award; however, the contract details and performance should be auditable. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Aircraft Maintenance Services
Technical Manuals and Documentation
Defense Logistics Support
Special Operations Forces Equipment Support
Aerospace Engineering Services

Risk Flags

Sole-source award raises concerns about fair pricing and competition.
Lack of transparency in justification for sole-source award.
Potential for higher costs to taxpayers due to lack of competition.
No indication of small business subcontracting goals or participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $125.2 million to BOEING SIKORSKY AIRCRAFT SUPPORT, LLC. TECHNICAL DATA PUBLICATIONS ODC'S

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 $125.2 million.

What is the period of performance?

Start: 2024-01-01. End: 2025-01-01.

What is the specific justification for awarding this contract on a sole-source basis to Boeing Sikorsky Aircraft Support, LLC?

The provided data indicates the contract was 'NOT COMPETED'. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. For technical data publications, this often relates to proprietary data, unique technical expertise, or existing platform integration requirements where only the original manufacturer or a designated entity can provide accurate and complete documentation. A full justification document would detail the specific reasons why competition was not feasible or practical for this particular requirement.

How does the $125 million value for one year of technical data publications compare to similar contracts or industry benchmarks?

Directly comparing the $125 million value for one year of technical data publications is difficult without more specific details about the scope of services, the specific aircraft platforms supported, and the volume/complexity of the data. Technical data is critical for maintenance, repair, and operations (MRO) of complex military assets. However, sole-source awards inherently lack competitive benchmarking. If this were competed, the price could potentially be lower. Industry benchmarks for such specialized services are often proprietary or vary significantly based on the platform's age, complexity, and the extent of required updates or new documentation.

What are the potential risks associated with a sole-source award for critical technical data?

The primary risk of a sole-source award for critical technical data is the potential for inflated pricing due to the absence of competitive pressure. Taxpayers may end up paying more than necessary. Another risk is a lack of innovation, as the incumbent contractor may have less incentive to improve processes or data delivery methods. Furthermore, over-reliance on a single source can create vulnerabilities if that source experiences financial difficulties, operational disruptions, or decides to discontinue support. Ensuring the quality and completeness of the data without competitive validation also presents a risk.

What is the track record of Boeing Sikorsky Aircraft Support, LLC in providing technical data publications to the DoD?

Boeing Sikorsky Aircraft Support, LLC, as a subsidiary or affiliate of a major aerospace manufacturer, likely has a long-standing track record of providing technical documentation for the aircraft they produce. Their experience would be directly tied to the specific platforms operated by the U.S. Special Operations Command. While specific performance metrics for this particular contract are not detailed, the company's history suggests a deep understanding of the technical requirements and the importance of accurate data for military aviation. Past performance reviews and contract histories within the DoD would provide a more granular assessment.

What are the implications of this contract being a delivery order under a larger contract?

A delivery order (DO) signifies that this $125 million award is a tasking under a pre-existing, broader indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar type of contract vehicle. This means the terms, conditions, and overall ceiling for the larger contract were established previously, potentially through competition. However, the specific details and competition level of this individual DO are determined by its issuance. If the base contract was competed, it offers some level of oversight. The 'NOT COMPETED' status for this specific DO indicates that this particular task order was not subject to a new bidding process, even if the base contract was.

How does the Firm Fixed Price (FFP) contract type influence risk and cost for this technical data publication contract?

A Firm Fixed Price (FFP) contract type means the price is set and not subject to adjustment based on the contractor's cost experience. For the government, this provides cost certainty, as the total expenditure is known upfront, assuming the scope is well-defined. The risk of cost overruns is primarily borne by the contractor, Boeing Sikorsky Aircraft Support, LLC. However, for FFP contracts, especially sole-source ones, the initial price must be carefully negotiated to ensure it reflects a fair value. If the baseline estimate is too high, the government pays a premium. Conversely, if the contractor underestimates costs, they may cut corners on quality or scope, which is a risk for technical data accuracy.

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: $125,172,853

Exercised Options: $125,172,853

Current Obligation: $125,172,853

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