DoD awards $264M for S-70B Helicopter production to Sikorsky Aircraft Corporation

Contract Overview

Contract Amount: $264,272,793 ($264.3M)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2009-12-23

End Date: 2020-08-13

Contract Duration: 3,886 days

Daily Burn Rate: $68.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: S-70B HELICOPTER - FMS

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $264.3 million to SIKORSKY AIRCRAFT CORPORATION for work described as: S-70B HELICOPTER - FMS Key points: 1. Significant contract value of $264M for helicopter manufacturing. 2. Sole-source award to Sikorsky Aircraft Corporation indicates limited competition. 3. Long contract duration (2009-2020) may impact price competitiveness. 4. Focus on aircraft manufacturing within the Defense sector.

Value Assessment

Rating: fair

The contract value of $264M over 11 years suggests a substantial investment. Without specific per-unit cost data or comparison points, assessing value for money is challenging. The firm fixed-price structure provides cost certainty but may not reflect market fluctuations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive procurement.

Taxpayer Impact: The lack of competition for this significant contract may result in higher costs for taxpayers, as market pressures are absent.

Public Impact

Taxpayers fund the production of advanced military helicopters. The Department of the Navy relies on these helicopters for operational needs. The contract supports jobs in Connecticut's aerospace manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Long contract duration may not reflect current market prices.
No indication of small business participation.

Positive Signals

Firm fixed-price contract provides cost certainty.
Supports critical defense capabilities for the Navy.

Sector Analysis

This contract falls within the Defense sector, specifically aircraft manufacturing. The benchmark for helicopter production contracts can vary widely based on complexity, quantity, and technological advancements. The $264M value over 11 years suggests a significant, long-term procurement.

Small Business Impact

The data indicates that small business participation was not a factor in this contract (ss: false, sb: false). This suggests the prime contractor, Sikorsky Aircraft Corporation, handled the entire scope of work, potentially missing opportunities to engage smaller businesses in the supply chain.

Oversight & Accountability

The contract was awarded by the Department of the Navy, a component of the Department of Defense. Oversight would typically involve program management reviews, contract performance monitoring, and financial audits to ensure compliance and value for money, though specific oversight mechanisms are not detailed here.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Lack of competition
No small business participation noted
Long contract duration without clear price adjustments

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $264.3 million to SIKORSKY AIRCRAFT CORPORATION. S-70B HELICOPTER - FMS

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 $264.3 million.

What is the period of performance?

Start: 2009-12-23. End: 2020-08-13.

What was the rationale for awarding this contract on a sole-source basis, and were alternatives explored?

The rationale for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternative sources. Without further documentation, it's unclear if alternatives were thoroughly explored or if specific justifications like national security or essential system integration were cited. Understanding this is crucial for assessing the necessity of foregoing competition.

How does the per-unit cost of the S-70B helicopter under this contract compare to similar aircraft procured competitively?

Direct comparison is difficult without specific per-unit cost data and details on the configuration and capabilities of the S-70B helicopters procured. However, sole-source contracts generally carry a higher risk of inflated pricing due to the absence of competitive pressure. Benchmarking against similar military helicopters procured through competitive means would be necessary to identify potential cost inefficiencies.

What is the long-term strategic value and operational effectiveness of the S-70B helicopter fleet acquired under this contract?

The S-70B helicopter, often known as the Seahawk, is a versatile maritime helicopter used for anti-submarine warfare, search and rescue, and utility missions. Its long service life and continued upgrades suggest significant strategic value. The effectiveness of the fleet acquired under this contract depends on its integration into naval operations, maintenance, and overall mission readiness.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0001909R0239

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 6900 MAIN ST, STRATFORD, CT, 06614

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $264,272,793

Exercised Options: $264,272,793

Current Obligation: $264,272,793

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline