DoD's $288M Sikorsky Contract for Aircraft Manufacturing: No Competition Identified
Contract Overview
Contract Amount: $287,944,257 ($287.9M)
Contractor: Sikorsky Aircraft Corporation
Awarding Agency: Department of Defense
Start Date: 2004-08-09
End Date: 2008-12-31
Contract Duration: 1,605 days
Daily Burn Rate: $179.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614
Plain-Language Summary
Department of Defense obligated $287.9 million to SIKORSKY AIRCRAFT CORPORATION for work described as: Key points: 1. Significant contract value of $288 million awarded to Sikorsky Aircraft Corporation. 2. Lack of competition raises questions about potential overpayment and value for taxpayer money. 3. The contract falls under the Aircraft Manufacturing sector, specifically NAICS 336411. 4. Awarded by the Department of the Navy, highlighting defense spending priorities.
Value Assessment
Rating: questionable
The contract's value of $288 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar aircraft manufacturing contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for the aircraft manufacturing services provided by Sikorsky Aircraft Corporation.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The Department of Defense's procurement process for this contract warrants scrutiny. Potential for reduced innovation and efficiency when competition is absent.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in pricing
Positive Signals
- Clear contract award date and duration
- Specific agency and contractor identified
Sector Analysis
This contract is within the Aircraft Manufacturing sector, a critical component of defense spending. Benchmarks for this sector are often influenced by technological complexity and R&D costs, but competition is key to controlling prices.
Small Business Impact
The data does not indicate any specific provisions or considerations for small business participation in this contract. The award went to a large corporation, Sikorsky Aircraft Corporation.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential gap in oversight regarding competitive procurement practices. Further review of the justification for not competing the award is recommended.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for price inflation
- Limited transparency in procurement
- No small business participation evident
Tags
aircraft-manufacturing, department-of-defense, ct, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $287.9 million to SIKORSKY AIRCRAFT CORPORATION. See the official description on USAspending.
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 Navy).
What is the total obligated amount?
The obligated amount is $287.9 million.
What is the period of performance?
Start: 2004-08-09. End: 2008-12-31.
What was the justification for not competing this significant aircraft manufacturing contract, and how was the price determined to be fair and reasonable in the absence of competition?
The justification for not competing the contract is not provided in the data. Typically, sole-source awards require a detailed justification, such as the unique capabilities of the contractor or urgent national security needs. Without this justification, it's impossible to assess the rationale behind the pricing and whether it truly reflects fair market value or includes a premium due to the lack of competitive pressure.
What are the potential long-term risks associated with awarding large contracts without competition in the defense sector, particularly for critical manufacturing capabilities?
Awarding large contracts without competition can lead to several long-term risks. It can stifle innovation by reducing the incentive for contractors to improve efficiency or develop new technologies. It may also result in sustained higher costs for taxpayers and create a dependency on a single supplier, which can be problematic if that supplier faces financial difficulties or production issues. Furthermore, it can set a precedent for future non-competitive awards.
How does the lack of competition in this $288 million contract impact the Department of the Navy's ability to secure the best value and ensure effective use of defense funds?
The lack of competition directly hinders the Department of the Navy's ability to secure the best value. Competitive bidding typically drives down prices and encourages contractors to offer superior products or services to win the contract. Without this pressure, the Navy may have paid more than necessary, potentially impacting the quantity or quality of aircraft acquired within the allocated budget. This raises concerns about the effective use of defense funds.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 6900 MAIN STREET, STRATFORD, CT, 03
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-08-09
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2013-09-16
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