DoD's $255M Sikorsky Aircraft Maintenance Contract: Fair Value Amidst Limited Competition?
Contract Overview
Contract Amount: $254,740,171 ($254.7M)
Contractor: Sikorsky Support Services Inc
Awarding Agency: Department of Defense
Start Date: 2009-01-01
End Date: 2015-06-30
Contract Duration: 2,371 days
Daily Burn Rate: $107.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TAS::17 1804::TAS MAINTENANCE/REPAIR OF AIRCRAFT
Place of Performance
Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06615
Plain-Language Summary
Department of Defense obligated $254.7 million to SIKORSKY SUPPORT SERVICES INC for work described as: TAS::17 1804::TAS MAINTENANCE/REPAIR OF AIRCRAFT Key points: 1. Significant spending on aircraft maintenance over 6 years. 2. Sole supplier for specialized Sikorsky aircraft support. 3. Potential for cost overruns due to limited competition. 4. High value contract within the Defense sector.
Value Assessment
Rating: fair
The contract value of $255M over 6 years suggests a substantial investment. Without detailed cost breakdowns or benchmarks for similar specialized aircraft maintenance, assessing the true value for money is challenging. The firm fixed-price structure offers some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under limited competition, likely due to the specialized nature of Sikorsky aircraft maintenance. This limited competition may have restricted price discovery and potentially led to higher costs than a fully open market.
Taxpayer Impact: Taxpayers bore the cost of this contract. While specialized maintenance is necessary, the limited competition raises questions about whether the most cost-effective solution was secured.
Public Impact
Ensures operational readiness of critical Sikorsky aircraft for the Department of Defense. Supports specialized jobs in aircraft maintenance and repair. Potential impact on future defense budgets if costs are not tightly managed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises cost concerns.
- Lack of clear per-unit cost benchmarks.
- Long contract duration without clear performance adjustments.
Positive Signals
- Firm fixed-price contract provides cost predictability.
- Essential service for national defense.
Sector Analysis
This contract falls within the Defense sector, specifically aircraft manufacturing and maintenance. Spending in this area is critical for national security but often involves high costs due to specialized technology and limited suppliers.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. The prime contractor is SIKORSKY SUPPORT SERVICES INC, a large entity. There is no information on subcontracting to small businesses.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), indicating established oversight. However, the effectiveness of this oversight in ensuring optimal value for money under limited competition warrants further review.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition
- Potential for cost overruns
- Lack of transparent cost benchmarks
- Sole-source dependency for specialized parts/services
Tags
aircraft-manufacturing, department-of-defense, ct, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $254.7 million to SIKORSKY SUPPORT SERVICES INC. TAS::17 1804::TAS MAINTENANCE/REPAIR OF AIRCRAFT
Who is the contractor on this award?
The obligated recipient is SIKORSKY SUPPORT SERVICES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $254.7 million.
What is the period of performance?
Start: 2009-01-01. End: 2015-06-30.
What was the justification for limiting competition for this specialized aircraft maintenance?
The justification for limited competition likely stems from the unique and proprietary nature of Sikorsky aircraft, requiring specialized knowledge, tooling, and parts only available from or through the original manufacturer or authorized service providers. This often restricts the pool of eligible bidders.
How does the $255M contract value compare to industry benchmarks for similar aircraft maintenance services?
Direct comparison is difficult without specific details on the scope of work, aircraft models, and service levels. However, for large-scale, long-term maintenance contracts in the defense sector, this value is substantial. Benchmarking would require access to proprietary cost data or similar public contracts.
What mechanisms were in place to ensure cost-effectiveness and prevent potential overpricing under limited competition?
The firm fixed-price contract structure provides a degree of cost certainty. However, effective cost control under limited competition often relies on robust negotiation, detailed cost analysis by the contracting agency, and performance monitoring to ensure the contractor meets all requirements efficiently.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001908R0015
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 6900 MAIN ST, STRATFORD, CT, 06614
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $254,740,171
Exercised Options: $254,740,171
Current Obligation: $254,740,171
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-01-01
Current End Date: 2015-06-30
Potential End Date: 2015-06-30 00:00:00
Last Modified: 2019-10-17
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