DoD awards $29.3M for Sikorsky helicopter support, raising concerns over limited competition

Contract Overview

Contract Amount: $29,261,384 ($29.3M)

Contractor: Sikorsky Support Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-10-24

End Date: 2012-09-30

Contract Duration: 342 days

Daily Burn Rate: $85.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TECH DIRECT

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32504

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $29.3 million to SIKORSKY SUPPORT SERVICES, INC. for work described as: TECH DIRECT Key points: 1. Significant contract value of $29.3M for specialized support services. 2. Sole-source award to Sikorsky Support Services, Inc. limits competitive pricing. 3. Contract duration of 342 days for a critical support function. 4. Potential for higher costs due to lack of competitive bidding.

Value Assessment

Rating: questionable

The award of $29.3M for 'Other Support Activities for Air Transportation' appears high given the 342-day duration and lack of competition. Benchmarking against similar support contracts would be necessary to determine true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and may lead to inflated costs for taxpayers.

Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive bidding process, impacting taxpayer funds.

Public Impact

Taxpayers may be overpaying for essential helicopter support services. Lack of transparency in the sole-source award process. Potential impact on military readiness if support costs divert funds from other critical areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Contract awarded to a known entity
Specific support activity identified

Sector Analysis

This contract falls under defense support services, specifically related to air transportation. Spending in this sector can vary widely based on the complexity of the equipment and the criticality of the support required.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting missed opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the price paid was fair and reasonable, and to understand why competition was not pursued.

Related Government Programs

Other Support Activities for Air Transportation
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited transparency
Missed small business opportunities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to SIKORSKY SUPPORT SERVICES, INC.. TECH DIRECT

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 $29.3 million.

What is the period of performance?

Start: 2011-10-24. End: 2012-09-30.

What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without specific documentation from the Department of Defense, it is difficult to ascertain the precise reason. However, the absence of competition raises questions about whether alternative vendors could have met the requirements, potentially at a lower cost.

How does the $29.3M award compare to similar helicopter support contracts awarded competitively?

Benchmarking this $29.3M award against similar helicopter support contracts awarded competitively is crucial for assessing value. If comparable contracts for similar services and durations were awarded at significantly lower prices, it would indicate potential overpayment. The sole-source nature of this award makes such comparisons challenging but essential for accountability.

What is the long-term impact of relying on sole-source contracts for critical support services?

Long-term reliance on sole-source contracts can stifle innovation, reduce competition, and lead to sustained higher costs for the government. It can also create vendor lock-in, making it difficult to switch providers even if better options emerge. This practice may also discourage potential new entrants from developing capabilities if they perceive the market as closed.

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: $29,531,384

Exercised Options: $29,531,384

Current Obligation: $29,261,384

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001911D0014

IDV Type: IDC

Timeline