DoD's $39.6M T34 Support contract awarded to Sikorsky Support Services, Inc. with no competition

Contract Overview

Contract Amount: $39,649,308 ($39.6M)

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: $187.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: T34 SUPPORT

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32504

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $39.6 million to SIKORSKY SUPPORT SERVICES, INC. for work described as: T34 SUPPORT Key points: 1. The contract's value of $39.6 million for T34 support raises questions about cost-effectiveness given the lack of competition. 2. Sole-source awards can limit price discovery and potentially lead to higher costs for taxpayers. 3. The short duration of the contract (212 days) suggests a need for immediate support, but the long-term strategy for T34 support remains unclear. 4. Performance context is limited due to the lack of competitive bidding and publicly available performance metrics. 5. This contract falls under 'Other Support Activities for Air Transportation,' a broad category that may obscure specific service details. 6. The absence of small business involvement (sb: false) indicates no specific focus on small business participation for this award.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without competitive data. The $39.6 million price tag for 212 days of support for T34 aircraft requires scrutiny. Given it was a sole-source award, it's difficult to assess if the pricing reflects fair market value or if taxpayers received optimal value. Without comparable contracts or detailed performance metrics, a definitive value assessment is hindered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Sikorsky Support Services, Inc., was considered. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means there was no opportunity for price negotiation or comparison among different providers, potentially impacting the final cost.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's ability to secure the best possible value for public funds.

Public Impact

The primary beneficiaries of this contract are the Department of Defense, specifically units utilizing T34 aircraft, ensuring operational readiness. The services delivered likely involve maintenance, repair, and logistical support for T34 aircraft, crucial for air transportation operations. The geographic impact is concentrated in Florida (st: FL), where the contract was performed. Workforce implications may include direct employment by Sikorsky Support Services, Inc. for specialized technical and support roles related to T34 aircraft.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Limited transparency on performance metrics hinders value assessment.
Sole-source award raises concerns about potential lack of innovation.
Short contract duration may indicate a stop-gap measure rather than a strategic solution.

Positive Signals

Awarded to a known entity (Sikorsky Support Services, Inc.) potentially indicating specialized expertise.
Contract addresses a specific need for T34 aircraft support, crucial for operational continuity.
Firm Fixed Price contract type provides cost certainty for the government.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on support services for aircraft. The market for specialized aircraft support can be concentrated, with a few key players possessing the necessary expertise and certifications. Benchmarking this spending against similar support contracts for comparable aircraft types would provide further context on its relative cost and scope.

Small Business Impact

This contract was not set aside for small businesses (sb: false), nor does it appear to have specific subcontracting requirements mentioned. This indicates that the primary contractor, Sikorsky Support Services, Inc., is likely a large business, and there was no explicit mechanism to ensure small business participation in this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management structures, potentially involving the Defense Contract Management Agency (DCMA). Accountability measures are usually tied to the firm fixed price terms and delivery schedules. Transparency is limited due to the sole-source nature and lack of publicly detailed performance reports.

Related Government Programs

T34 Aircraft Maintenance
Defense Aviation Support Services
Air Transportation Support Contracts
Department of Defense Logistics

Risk Flags

Sole-source award
Lack of competition
Limited performance transparency
Potential for cost inefficiency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.6 million to SIKORSKY SUPPORT SERVICES, INC.. T34 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 $39.6 million.

What is the period of performance?

Start: 2011-04-01. End: 2011-10-30.

What is the track record of Sikorsky Support Services, Inc. in providing T34 aircraft support?

Sikorsky Support Services, Inc., as a subsidiary of Lockheed Martin, has a long history and extensive experience in aviation support, including for military aircraft. While specific details on their T34 support performance under this particular contract are not publicly detailed, their general expertise in helicopter and fixed-wing aircraft maintenance, repair, and overhaul is well-established. Their involvement suggests a capability to meet the technical demands of supporting T34 aircraft. However, the lack of competitive bidding for this specific contract means performance metrics and customer satisfaction data from this engagement are not readily available for public comparison.

How does the value of this contract compare to similar T34 support contracts?

Direct comparison of this $39.6 million contract for T34 support is difficult due to its sole-source nature and the limited public data available on similar engagements. Typically, competitive solicitations would yield multiple bids, allowing for a clear benchmark of pricing and value. Without access to other T34 support contracts, especially those awarded competitively, it's challenging to definitively state whether this price represents a fair market value or if it is higher than average. The short duration (212 days) also makes direct cost-per-day comparisons with longer-term contracts potentially misleading.

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

The primary risks associated with this sole-source award include potential cost overruns due to the absence of competitive pricing pressure, leading to reduced value for taxpayer money. There's also a risk of complacency from the contractor, as there is no immediate threat of losing future business to competitors. Furthermore, limited competition can stifle innovation, as the contractor may have less incentive to develop more efficient or cost-effective support methods. The government also misses out on potential benefits derived from a broader market exploration, such as discovering new technologies or service models.

How effective is the T34 support program likely to be under this contract?

The effectiveness of the T34 support program under this contract is presumed to be adequate given Sikorsky Support Services, Inc.'s established capabilities in aviation support. The contract's firm fixed price structure provides cost certainty, which is a positive indicator for budget management. However, the lack of competition and detailed public performance metrics makes a definitive assessment of 'effectiveness' challenging. Effectiveness in this context would ideally encompass not just the technical execution of support but also the efficiency, timeliness, and overall contribution to T34 aircraft operational readiness. Without competitive benchmarks or detailed performance reviews, effectiveness remains largely inferred.

What are the historical spending patterns for T34 support within the Department of Defense?

Historical spending patterns for T34 support within the Department of Defense are not readily available in a consolidated public format. The T34 is an older aircraft, and its support needs may have evolved over time, with spending likely fluctuating based on fleet size, operational tempo, and maintenance requirements. Contracts for such specialized support are often awarded individually and may not be easily aggregated into a clear historical trend analysis without dedicated research into defense procurement databases. This specific contract represents a single data point within potentially broader, less transparent, historical spending on T34 sustainment.

What is the significance of the 'Other Support Activities for Air Transportation' classification?

The classification 'Other Support Activities for Air Transportation' (NAICS code 488190) is a broad category that encompasses a wide range of services related to air transportation that are not otherwise specified. This can include activities like aircraft maintenance and repair, air traffic control support, airport operations, and cargo handling services. For this specific contract, it indicates that the T34 support provided falls under this general umbrella, but it does not offer granular detail on the exact nature of the services rendered. This broad classification can sometimes obscure the specific value and scope of individual contracts, making detailed analysis more challenging.

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: $39,649,308

Exercised Options: $39,649,308

Current Obligation: $39,649,308

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001911D0014

IDV Type: IDC

Timeline