DoD awards $9.97B for 106 Black Hawk and Sea Hawk helicopters, with Sikorsky Aircraft Corporation as the sole provider

Contract Overview

Contract Amount: $9,971,085,290 ($10.0B)

Contractor: Sikorsky Aircraft Corporation

Awarding Agency: Department of Defense

Start Date: 2007-12-12

End Date: 2016-09-30

Contract Duration: 3,215 days

Daily Burn Rate: $3.1M/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF 54 EACH ARMY UH-60M BLACK HAWK HELICOPTERS; 18 EACH NAVY MH-60S SEA HAWK HELICOPTERS; 25 EACH NAVY NH-60R SEA HAWK HELICOPTERS; 9 EACH UH-60M BLACK HAWK HELICOPTER FOR BAHRAIN DEFENSE FORCE; TOOLING; PROGRAM SYSTEMS MANAGEMENT; TECHNICAL PUBLICATIONS.

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06614

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $9.97 billion to SIKORSKY AIRCRAFT CORPORATION for work described as: PROCUREMENT OF 54 EACH ARMY UH-60M BLACK HAWK HELICOPTERS; 18 EACH NAVY MH-60S SEA HAWK HELICOPTERS; 25 EACH NAVY NH-60R SEA HAWK HELICOPTERS; 9 EACH UH-60M BLACK HAWK HELICOPTER FOR BAHRAIN DEFENSE FORCE; TOOLING; PROGRAM SYSTEMS MANAGEMENT; TECHNICAL PUBLICATIONS. Key points: 1. This contract represents a significant investment in rotary-wing aircraft for the U.S. Army and Navy. 2. The sole-source nature of this award warrants scrutiny regarding price justification and potential for cost savings. 3. Long contract duration suggests a sustained need for these critical aviation assets. 4. The procurement includes aircraft for both U.S. forces and a foreign military sale to Bahrain. 5. Focus on established platforms like the Black Hawk and Sea Hawk indicates a preference for proven technology and reliability. 6. The contract's value places it among major defense procurements, highlighting its strategic importance.

Value Assessment

Rating: questionable

The total award of nearly $10 billion for 106 helicopters is substantial. Without competitive bidding, it is difficult to benchmark the value for money. The pricing for each unit, while not explicitly detailed here, would need rigorous justification given the lack of market comparison. The inclusion of tooling, program management, and technical publications suggests a comprehensive package, but the absence of competition raises concerns about whether the government secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Sikorsky Aircraft Corporation. This indicates that the Department of Defense determined that only Sikorsky could provide the required aircraft, potentially due to proprietary technology, unique capabilities, or existing platform integration. The lack of competition means that price discovery through market forces was bypassed, which can lead to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competing offers, there is less pressure on the contractor to offer the lowest possible price, potentially increasing the overall expenditure.

Public Impact

U.S. Army and Navy personnel will benefit from the acquisition of modern, reliable utility and multi-mission helicopters. These aircraft will support a wide range of operations, including troop transport, personnel recovery, and special warfare missions. The procurement enhances the operational readiness and capabilities of U.S. naval and aviation units. A portion of the contract supports the Bahrain Defense Force, strengthening international partnerships and security cooperation. The acquisition sustains jobs within the aerospace manufacturing sector, particularly in Connecticut where Sikorsky is based.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs.
Long contract duration increases exposure to potential cost overruns or changes in requirements.
Foreign military sale component adds complexity to program management and oversight.
Reliance on a single supplier for critical aircraft could pose supply chain risks.

Positive Signals

Procurement of proven, reliable aircraft platforms (Black Hawk/Sea Hawk) reduces technical risk.
Contract includes essential support elements like tooling and publications, ensuring operational readiness.
Sikorsky has a long-standing track record in producing these helicopter types.
The award supports critical defense capabilities for both U.S. forces and allies.

Sector Analysis

The helicopter manufacturing industry is a specialized segment of the aerospace and defense sector, characterized by high barriers to entry, significant R&D investment, and long product lifecycles. Major players like Sikorsky (a Lockheed Martin company) dominate the market for military rotorcraft. This contract for Black Hawk and Sea Hawk variants fits within the broader defense procurement landscape, where platforms are often sustained through sole-source or limited-competition awards due to established infrastructure, training, and interoperability requirements. Comparable spending benchmarks would typically involve other large-scale rotorcraft procurements, which are infrequent and highly specialized.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The primary contractor, Sikorsky Aircraft Corporation, is a large aerospace manufacturer. While large defense contracts often involve a complex supply chain where small businesses may participate as subcontractors, the absence of explicit set-aside provisions means direct opportunities for small businesses to compete for the prime contract are limited. The overall impact on the small business ecosystem would depend on the extent to which Sikorsky engages small businesses in its supply chain for this specific program.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. Given its sole-source nature, there would likely be a heightened focus on cost analysis and justification. Transparency may be limited due to the non-competitive award, but contract modifications, performance reports, and financial audits would be subject to internal DoD oversight and potentially congressional review. The Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA) would play roles in ensuring compliance and verifying costs. Inspector General investigations could be initiated if specific concerns regarding fraud, waste, or abuse arise.

Related Government Programs

Army Utility Helicopters
Navy Maritime Helicopters
Foreign Military Sales Aircraft
Rotorcraft Manufacturing
Defense Aviation Procurement

Risk Flags

Sole-source award
High contract value
Long contract duration
Foreign military sale component

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.97 billion to SIKORSKY AIRCRAFT CORPORATION. PROCUREMENT OF 54 EACH ARMY UH-60M BLACK HAWK HELICOPTERS; 18 EACH NAVY MH-60S SEA HAWK HELICOPTERS; 25 EACH NAVY NH-60R SEA HAWK HELICOPTERS; 9 EACH UH-60M BLACK HAWK HELICOPTER FOR BAHRAIN DEFENSE FORCE; TOOLING; PROGRAM SYSTEMS MANAGEMENT; TECHNICAL PUBLICATIONS.

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 Army).

What is the total obligated amount?

The obligated amount is $9.97 billion.

What is the period of performance?

Start: 2007-12-12. End: 2016-09-30.

What is the historical spending trend for UH-60M Black Hawk and MH/MH-60R/S Sea Hawk helicopters?

Historical spending on UH-60M Black Hawk and MH/MH-60R/S Sea Hawk helicopters has been substantial over the years, reflecting their status as workhorse platforms for the U.S. Army and Navy. While specific aggregate figures require extensive database queries, individual contract awards for these aircraft families often run into hundreds of millions or billions of dollars. For instance, prior awards for Black Hawk variants have supported fleet modernization and expansion, while Sea Hawk variants have been crucial for naval aviation roles like anti-submarine warfare and special operations. The consistent procurement indicates a long-term strategic reliance on these platforms, driving sustained government expenditure in this category.

How does the per-unit cost of these helicopters compare to similar aircraft procured competitively?

Benchmarking the per-unit cost of these helicopters against competitively procured alternatives is challenging due to the sole-source nature of this specific award and the specialized roles of the Black Hawk and Sea Hawk. Competitively procured utility or light attack helicopters might have lower per-unit costs, but they often lack the specific capabilities, payload, or mission systems integrated into the UH-60M and MH-60 variants. For a true comparison, one would need to analyze other sole-source or limited-competition awards for similar heavy-lift or multi-mission helicopters. Without such direct comparisons or detailed cost breakdowns from the contractor, assessing whether the $9.97 billion award represents optimal value per unit is difficult.

What are the primary risks associated with a sole-source award of this magnitude?

The primary risks associated with a sole-source award of this magnitude ($9.97 billion) include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a lack of transparency in cost justification. There's also a strategic risk if the sole-source supplier faces production issues, financial instability, or geopolitical challenges, as there are no immediate alternative suppliers for these specific, highly integrated platforms. Furthermore, the long-term sustainment and upgrade path is entirely dependent on the single contractor, potentially limiting future flexibility and increasing long-term costs.

What is Sikorsky Aircraft Corporation's track record with the Black Hawk and Sea Hawk programs?

Sikorsky Aircraft Corporation, now part of Lockheed Martin, has an extensive and well-established track record with both the UH-60 Black Hawk and the MH-60 Sea Hawk families of helicopters. The Black Hawk has been a staple of Army aviation since the late 1970s, undergoing numerous upgrades and variants (like the UH-60M). Similarly, the Sea Hawk variants (MH-60R and MH-60S) have been the primary naval Seahawks, replacing older platforms like the SH-60B and SH-60F, and have been in service since the early 2000s. Sikorsky has consistently delivered these aircraft, supporting their operational readiness and providing upgrades, making them a proven, albeit sole-source, provider for these critical platforms.

How does this procurement align with the Department of Defense's broader aviation modernization goals?

This procurement aligns with the Department of Defense's (DoD) ongoing efforts to modernize its rotary-wing fleet, ensuring that critical aviation assets remain capable and ready. The UH-60M represents a modernized version of the ubiquitous Black Hawk, incorporating improved engines, avionics, and airframes. The MH-60R and MH-60S are also advanced variants tailored for specific naval missions. While the DoD pursues next-generation aircraft in some areas, the continued procurement of upgraded versions of established platforms like the Black Hawk and Sea Hawk indicates a strategy that balances revolutionary development with the reliable, proven capabilities of evolutionary upgrades to existing, successful designs.

What is the significance of including tooling and program management in this contract?

Including tooling and program management within this contract signifies a comprehensive approach to acquiring and sustaining these critical aircraft. 'Tooling' refers to the specialized equipment and fixtures required for the manufacturing, assembly, and maintenance of the helicopters. 'Program systems management' encompasses the oversight, planning, and coordination of the entire acquisition program, ensuring that all aspects—from production to delivery and initial support—are managed effectively. By bundling these elements, the Department of Defense aims to streamline the acquisition process, ensure consistency in production quality, and establish a clear framework for program execution and oversight, potentially reducing fragmentation and improving overall program efficiency.

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: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corporation

Address: 6900 MAIN ST, STRATFORD, CT, 06614

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $9,971,518,930

Exercised Options: $9,971,323,947

Current Obligation: $9,971,085,290

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline