DoD awards $18.7M for Sikorsky helicopter maintenance, highlighting long-term contract and firm fixed price
Contract Overview
Contract Amount: $18,706,884 ($18.7M)
Contractor: Sikorsky Support Services Inc
Awarding Agency: Department of Defense
Start Date: 2006-09-29
End Date: 2012-06-30
Contract Duration: 2,101 days
Daily Burn Rate: $8.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MONTHLY FIXED MAINTENANCE
Place of Performance
Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32504
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $18.7 million to SIKORSKY SUPPORT SERVICES INC for work described as: MONTHLY FIXED MAINTENANCE Key points: 1. Contract value of $18.7M over 2101 days indicates significant investment in helicopter support. 2. Sikorsky Support Services Inc. is the sole awardee, raising questions about competition. 3. Firm Fixed Price contract type suggests price certainty but may limit flexibility. 4. The contract falls under 'Other Support Activities for Air Transportation', a critical but potentially niche sector.
Value Assessment
Rating: fair
The $18.7M award over approximately 5.7 years suggests a substantial but potentially reasonable price for specialized helicopter maintenance. Benchmarking against similar long-term support contracts for complex aircraft is needed for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite the award to a single entity, the contract was awarded under 'Full and Open Competition'. This suggests that multiple bids were likely considered, but Sikorsky Support Services Inc. was ultimately selected. The pricing discovery process would have occurred during the bidding phase.
Taxpayer Impact: Taxpayer funds are utilized for essential defense maintenance. The firm fixed price structure aims to control costs, but the long duration warrants scrutiny to ensure continued value.
Public Impact
Ensures operational readiness of critical Sikorsky aircraft for the Department of Defense. Supports specialized maintenance services, potentially involving proprietary knowledge and parts. Long-term nature of the contract provides stability for both the contractor and the agency. Potential for cost overruns or underperformance exists in any long-duration service contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2101 days) increases risk of price escalation or changing needs.
- Sole awardee for a significant contract may indicate limited market competition.
- Lack of specific Product/Service Code (PSC) makes detailed benchmarking difficult.
Positive Signals
- Firm Fixed Price contract provides cost certainty for the government.
- Awarded under Full and Open Competition, suggesting a competitive bidding process.
- Contract supports critical national defense assets.
Sector Analysis
This contract falls under 'Other Support Activities for Air Transportation', a sector vital for military operations. Spending in this area is often driven by the need for specialized maintenance of unique or complex aircraft, with benchmarks varying widely based on aircraft type and service scope.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses. Further investigation would be needed to determine if small businesses were involved in the supply chain or as subcontractors.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), indicating established oversight. However, the long duration necessitates ongoing monitoring to ensure performance and cost control.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration
- Potential for limited competition despite 'Full and Open' status
- Firm Fixed Price may not adapt well to unforeseen cost fluctuations
- Lack of specific PSC hinders detailed analysis
Tags
other-support-activities-for-air-transpo, department-of-defense, fl, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.7 million to SIKORSKY SUPPORT SERVICES INC. MONTHLY FIXED MAINTENANCE
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 $18.7 million.
What is the period of performance?
Start: 2006-09-29. End: 2012-06-30.
What was the competitive landscape during the bidding process for this contract, given the single awardee?
While the contract was awarded under 'Full and Open Competition', the fact that Sikorsky Support Services Inc. is the sole awardee warrants further examination. It's possible that only one qualified bidder emerged, or that Sikorsky offered the most advantageous proposal based on technical and price factors. Understanding the number of proposals received and the evaluation criteria would clarify the competitive dynamics.
How does the firm fixed price compare to market rates for similar long-term helicopter maintenance contracts?
Assessing the firm fixed price requires benchmarking against comparable long-term maintenance contracts for similar helicopter platforms. Factors like the scope of services, required expertise, and parts availability influence pricing. Without specific details on the maintenance tasks and market data, it's difficult to definitively state if the price is optimal, though the FFP structure aims for predictability.
What are the potential risks associated with a 2101-day fixed-price contract for specialized maintenance?
A long-duration fixed-price contract carries risks such as potential cost increases if market prices for parts or labor rise significantly above projections. Conversely, the contractor might face reduced profit margins if costs escalate unexpectedly. Additionally, technological advancements or changes in operational requirements could make the contracted services less relevant or efficient over time.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 6900 MAIN ST, STRATFORD, CT, 03
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $18,706,884
Exercised Options: $18,706,884
Current Obligation: $18,706,884
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001906D0017
IDV Type: IDC
Timeline
Start Date: 2006-09-29
Current End Date: 2012-06-30
Potential End Date: 2012-06-30 00:00:00
Last Modified: 2012-08-08
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