DoD's $26.7M Sikorsky Support Services Contract Raises Questions on Competition and Value
Contract Overview
Contract Amount: $26,713,227 ($26.7M)
Contractor: Sikorsky Support Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-10-19
End Date: 2012-09-30
Contract Duration: 347 days
Daily Burn Rate: $77.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FIXED MAINT
Place of Performance
Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32504
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $26.7 million to SIKORSKY SUPPORT SERVICES, INC. for work described as: FIXED MAINT Key points: 1. Contract awarded to SIKORSKY SUPPORT SERVICES, INC. for $26.7M. 2. No competition was utilized for this contract. 3. The contract falls under 'Other Support Activities for Air Transportation' within the Defense sector. 4. Pricing appears fair given the firm fixed price structure, but lack of competition limits price discovery.
Value Assessment
Rating: fair
The firm fixed price contract for $26.7M appears reasonable for the services rendered. However, without competitive bidding, it's difficult to ascertain if this represents the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits the government's ability to leverage market competition to drive down costs and ensure optimal value.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these support services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on specialized support, but the procurement method warrants scrutiny. Transparency in sole-source contracts is crucial for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency in sole-source award
Positive Signals
- Firm fixed price contract provides cost certainty
- Specific support services for defense operations
Sector Analysis
This contract for air transportation support falls within the broader Defense sector. Benchmarks for similar specialized support services are difficult to establish without competitive data, but large sole-source awards warrant careful review.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine potential small business participation.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure the contractor is meeting all performance requirements and that the pricing remains fair throughout the contract duration.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing pressure.
- Potential for inflated costs due to lack of competition.
- Limited transparency regarding the necessity of a sole-source procurement.
- No clear indication 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 $26.7 million to SIKORSKY SUPPORT SERVICES, INC.. FIXED MAINT
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 $26.7 million.
What is the period of performance?
Start: 2011-10-19. End: 2012-09-30.
What justification was provided for not competing this contract, and does it align with federal procurement regulations for sole-source awards?
The provided data indicates the contract was 'NOT COMPETED'. Federal regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. A thorough review of the justification documentation would be necessary to confirm its validity and ensure compliance with procurement laws.
How does the unit cost or overall price compare to similar support contracts awarded competitively by the DoD or other agencies?
Without competitive benchmarks, a direct comparison is challenging. The firm fixed price of $26.7M for 347 days of service is difficult to assess for value. Analyzing historical data for similar sole-source contracts or seeking independent cost estimates would be crucial for a more accurate valuation.
What mechanisms are in place to ensure the effectiveness and efficiency of the services provided under this sole-source contract?
The Defense Contract Management Agency (DCMA) is responsible for oversight. Their role typically includes monitoring contractor performance, ensuring compliance with contract terms, and verifying deliverables. However, the absence of competition means that market pressures for efficiency are reduced, placing greater reliance on diligent government oversight.
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: $26,713,227
Exercised Options: $26,713,227
Current Obligation: $26,713,227
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: 2011-10-19
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2017-08-23
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