DoD awards $19.6M for T-44 Support to Sikorsky, raising concerns over limited competition
Contract Overview
Contract Amount: $19,620,032 ($19.6M)
Contractor: Sikorsky Support Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-04-01
End Date: 2011-10-30
Contract Duration: 212 days
Daily Burn Rate: $92.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: T-44 SUPPORT
Place of Performance
Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32504
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $19.6 million to SIKORSKY SUPPORT SERVICES, INC. for work described as: T-44 SUPPORT Key points: 1. Significant contract value of $19.6 million for specialized aircraft support. 2. Sole-source award to Sikorsky raises questions about price discovery and competition. 3. Potential risk associated with reliance on a single provider for critical support. 4. Contract falls within the Defense sector, requiring specialized aviation maintenance.
Value Assessment
Rating: questionable
The contract value of $19.6 million for T-44 support appears high given the relatively short duration and the lack of competitive bidding. Benchmarking against similar sole-source aviation support contracts would be necessary to definitively assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers compared to a fully competed contract.
Taxpayer Impact: The absence of competition for this $19.6 million contract likely results in a higher cost to taxpayers than if multiple vendors had vied for the work.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. Potential for reduced operational readiness if Sikorsky faces performance issues. Limited transparency into the justification for a sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Specific support for T-44 aircraft
- Contract awarded to established provider
Sector Analysis
This contract falls under the Defense sector, specifically focusing on aviation support. Spending in this area is critical for maintaining military readiness, but often involves specialized equipment and limited vendor pools, increasing the risk of sole-source awards.
Small Business Impact
The contract data does not indicate any specific provisions or awards to small businesses. The sole-source nature of this award further limits opportunities for small business participation.
Oversight & Accountability
The sole-source justification for this significant contract warrants thorough review by oversight bodies to ensure it was appropriate and that taxpayer funds are being used efficiently.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Reliance on a single contractor poses risk.
- Short contract duration may indicate a stop-gap measure or limited scope.
- Lack of small business participation.
Tags
other-support-activities-for-air-transpo, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.6 million to SIKORSKY SUPPORT SERVICES, INC.. T-44 SUPPORT
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 $19.6 million.
What is the period of performance?
Start: 2011-04-01. End: 2011-10-30.
What was the specific justification for awarding this contract on a sole-source basis, and was a market research conducted to confirm the absence of viable alternatives?
The justification for a sole-source award is crucial for understanding why competition was bypassed. Agencies typically conduct market research to determine if only one source can meet the requirement. Without this documentation, it's difficult to assess if the government adequately explored competitive options, potentially leading to missed savings and reduced innovation.
How does the awarded price compare to industry benchmarks for similar T-44 support services, especially considering the lack of competition?
Benchmarking the awarded price against similar contracts, particularly those that were competitively procured, is essential. A sole-source award inherently lacks the price pressure of competition, making it more susceptible to higher costs. Analyzing historical data and industry pricing for comparable services can reveal potential overpricing and inform future procurement strategies.
What are the potential risks to the T-44 program's operational readiness if Sikorsky Support Services, Inc. experiences performance issues or financial instability?
Given this is a sole-source contract, the government is heavily reliant on Sikorsky. Any performance degradation or financial instability from the contractor could directly impact the T-44 program's readiness and operational capabilities. Contingency plans and robust contract management are vital to mitigate these risks and ensure continuity of support.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
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 Corp (UEI: 834951691)
Address: 7282 PLANTATION RD STE 301, PENSACOLA, FL, 32504
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,620,032
Exercised Options: $19,620,032
Current Obligation: $19,620,032
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001911D0014
IDV Type: IDC
Timeline
Start Date: 2011-04-01
Current End Date: 2011-10-30
Potential End Date: 2011-10-30 00:00:00
Last Modified: 2016-08-11
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