DoD Awards $104M Sikorsky Contract for Aircraft Structural Component Repair

Contract Overview

Contract Amount: $10,407,970 ($10.4M)

Contractor: Sikorsky Support Services Inc

Awarding Agency: Department of Defense

Start Date: 2005-10-31

End Date: 2009-08-31

Contract Duration: 1,400 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200601!110004!1700!N68836!FLEET AND INDUSTRIAL SUPPLY CENT!N6883606C0006 !A!N! !N! ! !20051031!20060930!107254062!107254062!001344142!N!SIKORSKY SUPPORT SERVICES, INC!6900 MAIN ST !STRATFORD !CT!06615!18825!031!12!DUVAL !DUVAL !FLORIDA !+000001415879!N!N!000007615610!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !S1 !SERVICES !000 !NOT DISCERNABLE !488190!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!006!B! !C!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! !1760!N53912!0001! !

Place of Performance

Location: JACKSONVILLE, DUVAL County, FLORIDA, 32228

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $10.4 million to SIKORSKY SUPPORT SERVICES INC for work described as: 200601!110004!1700!N68836!FLEET AND INDUSTRIAL SUPPLY CENT!N6883606C0006 !A!N! !N! ! !20051031!20060930!107254062!107254062!001344142!N!SIKORSKY SUPPORT SERVICES, INC!6900 MAIN ST !STRATFORD !CT!06615!18825!031!12!DUVAL !DUVA… Key points: 1. Contract awarded to Sikorsky Support Services, Inc. for aircraft structural component maintenance and repair. 2. The contract has a base value of $18.8M with a potential value of $104M, indicating significant growth potential. 3. Competition was full and open, suggesting a competitive bidding process that likely influenced pricing. 4. The sector is Defense, specifically supporting air transportation equipment. 5. Risk factors include potential cost overruns and performance issues given the long duration and high value.

Value Assessment

Rating: good

The contract's base value of $18.8M appears reasonable for specialized aircraft structural component repair. However, the potential value of $104M over its duration warrants close monitoring for cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically leads to more competitive pricing. The price discovery mechanism is likely through the bidding process, aiming for the best value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the services rendered, though the full potential value requires oversight.

Public Impact

Ensures continued operational readiness of critical aircraft assets for the Department of Defense. Supports specialized maintenance and repair services, potentially preserving high-value equipment. The large contract value indicates a significant investment in maintaining defense capabilities. Potential for job creation and economic activity within the aerospace support sector.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Potential for cost escalation given the long contract duration and undefined scope for the full value.
Dependence on a single contractor for critical repair services could pose supply chain risks.
Performance monitoring is crucial to ensure quality and timely repairs.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Contract includes a base value with options, allowing for flexibility and controlled spending.
Sikorsky is a well-established entity in the aerospace industry.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on maintenance and repair of aircraft structural components. Spending in this area is critical for maintaining military readiness and operational capabilities. Benchmarks for such specialized services can vary widely based on complexity and aircraft type.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The prime contractor, Sikorsky Support Services, Inc., is a large entity, suggesting that subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award.

Oversight & Accountability

The contract's duration and potential value necessitate robust oversight from the Department of the Navy to ensure performance standards are met and costs remain controlled. Accountability will be key in managing the full contract value effectively.

Related Government Programs

Other Support Activities for Air Transportation
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns
Contract duration and scope ambiguity
Dependence on sole-source provider for specific expertise
Performance variability risk
Supply chain disruptions for specialized parts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.4 million to SIKORSKY SUPPORT SERVICES INC. 200601!110004!1700!N68836!FLEET AND INDUSTRIAL SUPPLY CENT!N6883606C0006 !A!N! !N! ! !20051031!20060930!107254062!107254062!001344142!N!SIKORSKY SUPPORT SERVICES, INC!6900 MAIN ST !STRATFORD !CT!06615!18825!031!12!DUVAL !DUVAL !FLORIDA !+000001415879!N!N!000007615610!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !S1 !SERVICES !000 !NOT DISCERNABLE !488190!E! !3! ! ! ! ! !999

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $10.4 million.

What is the period of performance?

Start: 2005-10-31. End: 2009-08-31.

What is the breakdown of the $104M potential value, and how are task orders allocated to reach this ceiling?

The potential value of $104M likely represents the maximum ceiling achievable through various contract modifications, options, or task orders over the contract's life. The specific allocation mechanism for reaching this ceiling is not detailed here but typically involves competitive task order awards or pre-negotiated rates for specific services as needs arise.

How does the cost of these repair services compare to industry benchmarks for similar aircraft structural component maintenance?

Without specific details on the types of components and the nature of the repairs, a direct cost comparison is difficult. However, given the full and open competition, the pricing is expected to be competitive. Further analysis would require comparing specific labor rates, material costs, and overhead applied against industry standards for comparable military aircraft.

What are the key performance indicators (KPIs) used to measure the effectiveness of Sikorsky Support Services in maintaining aircraft structural integrity?

Key performance indicators would likely include metrics such as on-time delivery rates for repairs, quality of workmanship (e.g., defect rates, rework required), adherence to technical specifications, and overall cost control. The Department of the Navy would establish these KPIs to ensure the contractor meets the required standards for aircraft safety and readiness.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

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

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 6900 MAIN ST, STRATFORD, CT, 06615

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline