DoD spent $23.1M on Sikorsky Support Services for aircraft parts and maintenance in 2010
Contract Overview
Contract Amount: $23,133,317 ($23.1M)
Contractor: Sikorsky Support Services Inc
Awarding Agency: Department of Defense
Start Date: 2009-09-30
End Date: 2010-09-30
Contract Duration: 365 days
Daily Burn Rate: $63.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PARTS & MAT
Place of Performance
Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32504, UNITED STATES OF AMERICA
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $23.1 million to SIKORSKY SUPPORT SERVICES INC for work described as: PARTS & MAT Key points: 1. Contract value represents a significant investment in aviation readiness. 2. Sole-source award suggests limited market alternatives or specific contractor expertise. 3. Fixed-price contract shifts cost risk to the contractor. 4. Short contract duration may indicate a need for immediate support or a pilot program. 5. Geographic concentration in Florida warrants attention for regional economic impact. 6. High benchmark for parts and maintenance suggests potential for cost optimization.
Value Assessment
Rating: fair
The contract's value of $23.1 million for parts and maintenance appears substantial for a one-year duration. Benchmarking against similar support contracts for military aircraft is crucial to determine if this represents a fair price. Without specific details on the types of parts and maintenance provided, a definitive value assessment is challenging. However, the fixed-price nature of the contract provides some cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to yield better pricing and terms for the government. The presence of multiple bidders suggests a healthy market for these types of support services, although the specific number of bids received is not provided.
Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically drives down costs through market forces, ensuring the government receives competitive pricing.
Public Impact
The Department of Defense benefits from the continued operational readiness of its aircraft. Sikorsky Support Services Inc. receives significant revenue, supporting its operations and workforce. The contract impacts the aviation support and maintenance sector in Florida. Aircrews and maintenance personnel are supported by the availability of necessary parts and services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the fixed-price contract does not adequately account for all eventualities.
- Dependence on a single contractor for critical support could pose risks if performance falters.
- Limited contract duration may lead to recurring procurement costs and administrative burden.
Positive Signals
- Full and open competition suggests a robust market and potential for competitive pricing.
- Fixed-price contract shifts cost risk to the contractor, providing budget certainty.
- Contract awarded to a known entity in the aerospace support industry.
Sector Analysis
This contract falls within the broader aerospace and defense sector, specifically focusing on aircraft maintenance and parts. The market for such services is characterized by specialized technical expertise and stringent quality requirements. Spending in this area is critical for maintaining military readiness. Comparable spending benchmarks would involve analyzing other DoD contracts for similar aircraft support services, considering factors like fleet size and aircraft type.
Small Business Impact
The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). Therefore, the primary contractor, Sikorsky Support Services Inc., likely handled the majority of the work. There is no explicit information on subcontracting plans to small businesses, which could represent a missed opportunity for small business engagement within this contract's scope.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms and performance standards. The fixed-price nature of the award provides a degree of accountability for the contractor regarding cost. Transparency is facilitated through contract databases, though detailed performance metrics are often not publicly disclosed.
Related Government Programs
- Aircraft Maintenance Services
- Aerospace Parts Procurement
- Defense Logistics Support
- Military Aviation Readiness Programs
Risk Flags
- Potential for cost overruns if fixed-price contract underestimated true costs.
- Dependence on contractor for critical parts and maintenance.
- Limited duration may necessitate frequent re-competition, increasing administrative burden.
Tags
defense, department-of-defense, sikorsky-support-services-inc, parts-and-maintenance, firm-fixed-price, full-and-open-competition, aircraft-support, florida, 2010, defense-contract-management-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.1 million to SIKORSKY SUPPORT SERVICES INC. PARTS & MAT
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 $23.1 million.
What is the period of performance?
Start: 2009-09-30. End: 2010-09-30.
What specific types of aircraft parts and maintenance services were covered under this $23.1 million contract?
The provided data indicates the contract was for 'PARTS & MAT' (Parts & Maintenance) under NAICS code 488190 (Other Support Activities for Air Transportation). However, the specific types of aircraft parts (e.g., engine components, avionics, airframe parts) and the scope of maintenance services (e.g., scheduled inspections, unscheduled repairs, depot-level maintenance) are not detailed in the summary data. This level of specificity is crucial for a thorough value assessment and understanding the contract's true impact on operational readiness.
How does the $23.1 million contract value compare to similar support contracts for military aircraft within the Department of Defense?
Benchmarking this $23.1 million contract requires comparing it to similar contracts for the same or comparable aircraft types, duration, and scope of services. Without knowing the specific aircraft platform supported, a direct comparison is difficult. However, for a one-year firm-fixed-price contract covering parts and maintenance, $23.1 million is a substantial sum, suggesting it might support a significant number of aircraft or highly complex maintenance requirements. Further analysis would involve querying databases for contracts with similar NAICS codes and agencies to identify average costs and identify outliers.
What were the key performance indicators (KPIs) or metrics used to evaluate Sikorsky Support Services Inc.'s performance under this contract?
The provided summary data does not include specific Key Performance Indicators (KPIs) or performance metrics established for this contract. Typically, for aircraft maintenance and parts supply contracts, KPIs might include on-time delivery rates for parts, aircraft availability rates, turnaround times for repairs, quality of workmanship, and adherence to safety standards. The effectiveness of the contract's execution would be measured against these, often documented in performance reports and feedback mechanisms managed by the contracting officer's representative (COR).
What is the historical spending pattern for aircraft parts and maintenance by the Department of Defense, and how does this contract fit in?
The Department of Defense consistently allocates significant portions of its budget to aircraft maintenance and parts procurement to ensure operational readiness. Historical spending in this category runs into billions of dollars annually across various branches and platforms. This $23.1 million contract, while substantial for a single award, represents a small fraction of the overall DoD spending on aviation sustainment. Analyzing trends over several fiscal years would reveal patterns in demand, technology adoption, and potential shifts towards performance-based logistics or service-based contracts.
What are the potential risks associated with a firm-fixed-price contract for aircraft parts and maintenance, especially over a one-year term?
A firm-fixed-price (FFP) contract shifts the majority of cost risk to the contractor. For aircraft parts and maintenance, risks include the contractor underestimating costs, leading to potential quality compromises or financial losses for the contractor. Conversely, if the contractor accurately priced or overestimated, the government might pay a premium. For a one-year term, the risk of unforeseen technical issues or supply chain disruptions impacting costs is present. The government's primary risk is ensuring the contractor delivers required quality and quantity within the agreed price, potentially through robust oversight and clear contract specifications.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: RTX Corp (UEI: 001344142)
Address: 6900 MAIN ST, STRATFORD, CT, 06615
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,133,317
Exercised Options: $23,133,317
Current Obligation: $23,133,317
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001906D0017
IDV Type: IDC
Timeline
Start Date: 2009-09-30
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2015-09-16
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