DoD Spends $54.6M on Sikorsky Support Services for Air Transportation
Contract Overview
Contract Amount: $54,587,246 ($54.6M)
Contractor: Sikorsky Support Services Inc
Awarding Agency: Department of Defense
Start Date: 2007-10-01
End Date: 2013-12-31
Contract Duration: 2,283 days
Daily Burn Rate: $23.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: DETACH SUPP
Place of Performance
Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32504
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $54.6 million to SIKORSKY SUPPORT SERVICES INC for work described as: DETACH SUPP Key points: 1. Contract awarded to Sikorsky Support Services Inc. for $54.6 million. 2. The contract falls under 'Other Support Activities for Air Transportation'. 3. Awarded via full and open competition, indicating a competitive bidding process. 4. The contract duration is 2283 days, spanning from October 2007 to December 2013. 5. This contract is for support activities, not the direct purchase of aircraft.
Value Assessment
Rating: fair
The contract type is 'COST NO FEE', which can sometimes lead to less price discipline compared to fixed-price contracts. Without specific performance metrics or benchmarks for 'Other Support Activities for Air Transportation', a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting that multiple bidders had the opportunity to compete. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: The use of full and open competition is a positive sign for taxpayer value, as it aims to secure competitive pricing. However, the 'COST NO FEE' structure warrants scrutiny to ensure costs remain reasonable.
Public Impact
Ensures continued operational readiness for Department of Defense air assets. Supports critical logistics and maintenance functions for air transportation. Impacts personnel and resources involved in military aviation support. Potential for long-term reliance on specific support providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus contract structure can incentivize higher spending.
- Lack of specific unit cost data makes benchmarking difficult.
- Long contract duration may reduce flexibility.
Positive Signals
- Awarded through full and open competition.
- Supports essential defense operations.
- Clear contract end date.
Sector Analysis
This contract falls within the broader aerospace and defense sector, specifically focusing on support services for air transportation. Spending benchmarks for such support contracts can vary widely based on the type of aircraft, operational tempo, and specific services required.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, suggesting established oversight mechanisms. However, the 'COST NO FEE' structure requires diligent monitoring to control expenditures and ensure value for money.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost-plus contract type can lead to higher overall spending.
- Lack of detailed cost breakdowns hinders value assessment.
- Long contract duration may limit adaptability to changing needs.
- Potential for cost creep without stringent oversight.
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 $54.6 million to SIKORSKY SUPPORT SERVICES INC. DETACH SUPP
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 $54.6 million.
What is the period of performance?
Start: 2007-10-01. End: 2013-12-31.
What specific support activities were included under this contract, and how do they align with industry standards for cost-effectiveness?
The contract covers 'Other Support Activities for Air Transportation.' Without a detailed breakdown of services (e.g., maintenance, logistics, training, ground support), it's challenging to compare costs against industry benchmarks. The 'COST NO FEE' structure means the government reimburses allowable costs plus a negotiated fee, necessitating robust auditing and cost tracking to ensure efficiency and prevent overspending.
Given the 'COST NO FEE' structure and the long duration, what mechanisms were in place to mitigate cost overruns and ensure fair pricing?
While 'COST NO FEE' contracts can be flexible, they rely heavily on government oversight to control costs. Mechanisms likely included detailed cost accounting standards, regular audits, and performance reviews. The full and open competition at the outset aimed to establish a competitive baseline, but ongoing vigilance would be crucial to manage costs throughout the contract's 6-year term.
How did the full and open competition process ensure the best value was achieved for these air transportation support services?
Full and open competition allows multiple qualified vendors to submit proposals, fostering a competitive environment that typically drives down prices and improves service quality. The government would evaluate proposals based on technical merit, past performance, and price. The success in achieving best value depends on the clarity of the solicitation, the rigor of the evaluation process, and the government's ability to negotiate favorable terms within the 'COST NO FEE' framework.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST NO FEE (S)
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: $54,587,246
Exercised Options: $54,587,246
Current Obligation: $54,587,246
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001906D0017
IDV Type: IDC
Timeline
Start Date: 2007-10-01
Current End Date: 2013-12-31
Potential End Date: 2013-12-31 00:00:00
Last Modified: 2013-09-17
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