DoD awards $38.2M for T-34/T-44/T-6 contractor logistics support to Sikorsky Support Services Inc

Contract Overview

Contract Amount: $38,188,285 ($38.2M)

Contractor: Sikorsky Support Services Inc

Awarding Agency: Department of Defense

Start Date: 2013-11-25

End Date: 2014-10-31

Contract Duration: 340 days

Daily Burn Rate: $112.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Defense

Official Description: T-34/T-44/T-6 CONTRACTOR LOGISTICS SUPPORT

Place of Performance

Location: STRATFORD, FAIRFIELD County, CONNECTICUT, 06615, UNITED STATES OF AMERICA

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $38.2 million to SIKORSKY SUPPORT SERVICES INC for work described as: T-34/T-44/T-6 CONTRACTOR LOGISTICS SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost No Fee, which places the cost risk on the contractor. 3. The duration of the contract is 340 days, indicating a short-term support requirement. 4. The award was made by the Defense Contract Management Agency, a key oversight body. 5. The contract falls under 'Other Support Activities for Air Transportation', a niche service area. 6. The contractor, Sikorsky Support Services Inc., is a significant player in the aerospace support sector.

Value Assessment

Rating: fair

The contract value of $38.2 million for approximately one year of logistics support for T-34/T-44/T-6 aircraft appears to be within a reasonable range for specialized aviation support. However, without specific details on the scope of services, personnel hours, and parts included, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for aircraft logistics support would be necessary for a more definitive evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specialized service. While two bidders are better than one, a higher number of competitors could potentially drive prices down further and offer a wider range of solutions.

Taxpayer Impact: The full and open competition, with at least two bidders, is generally favorable for taxpayers as it increases the likelihood of competitive pricing and efficient service delivery.

Public Impact

The primary beneficiaries are the U.S. Department of Defense, ensuring the operational readiness of T-34/T-44/T-6 training and support aircraft. Services delivered include contractor logistics support, which encompasses maintenance, repair, and potentially supply chain management for the specified aircraft. The geographic impact is likely concentrated around military installations where these aircraft are operated and maintained. Workforce implications include the employment of skilled technicians, mechanics, and support staff by Sikorsky Support Services Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee contract type places significant cost risk on the contractor, which could lead to pressure on service quality if not managed effectively.
Limited competition (2 bidders) may not have fully optimized price discovery.
Short contract duration (340 days) might indicate a need for ongoing re-competition or potential instability for long-term planning.

Positive Signals

Awarded under full and open competition, ensuring a broad base of potential offerors.
Contractor logistics support is a specialized service that can enhance aircraft availability and reduce government maintenance burden.
Sikorsky Support Services Inc. is an established entity with likely experience in military aviation support.

Sector Analysis

The aerospace and defense sector is characterized by high technological complexity and significant government procurement. Contractor logistics support is a critical component within this sector, enabling military branches to maintain aircraft readiness without overburdening organic maintenance capabilities. The market for such services is substantial, driven by the extensive fleets of military aircraft requiring ongoing support. This contract fits within the broader category of aviation services and maintenance, a segment that often sees significant government investment.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract award is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) is responsible for overseeing this contract, ensuring compliance with terms and conditions. As a Cost No Fee contract, oversight would focus on the contractor's management of costs and delivery of services to meet the contract's objectives. Transparency is generally maintained through contract reporting mechanisms, though specific details of ongoing oversight activities are not publicly detailed.

Related Government Programs

T-34 Mentor Aircraft Program
T-44 Pegasus Aircraft Program
T-6 Texan II Aircraft Program
DoD Aviation Maintenance Contracts
Contractor Logistics Support Services

Risk Flags

Limited Competition
Cost Risk Concentration (CNF)
Potential for Service Quality Compromise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.2 million to SIKORSKY SUPPORT SERVICES INC. T-34/T-44/T-6 CONTRACTOR LOGISTICS SUPPORT

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 $38.2 million.

What is the period of performance?

Start: 2013-11-25. End: 2014-10-31.

What is the track record of Sikorsky Support Services Inc. in providing contractor logistics support for military aircraft?

Sikorsky Support Services Inc., a subsidiary of Sikorsky Aircraft Corporation (now part of Lockheed Martin), has a long history of providing support services for military aircraft. Their expertise typically includes maintenance, repair, overhaul, and supply chain management for various helicopter and fixed-wing platforms. For fixed-wing training aircraft like the T-34, T-44, and T-6, their experience would likely involve ensuring airworthiness, managing spare parts, and providing technical expertise to keep these essential training assets operational. Their established presence in the defense sector suggests a capacity to handle complex logistics requirements, though specific performance metrics for this particular contract would require further investigation into contract performance reports and user feedback.

How does the $38.2 million contract value compare to similar logistics support contracts for training aircraft?

Benchmarking the $38.2 million contract value requires detailed comparison with contracts for similar aircraft types (e.g., other turboprop trainers) and similar service scopes (e.g., full logistics support including parts, labor, and maintenance). Contracts for specialized aviation logistics can vary significantly based on fleet size, operational tempo, and the specific services included (e.g., depot-level maintenance vs. line maintenance). A contract of this value for approximately one year of support for a fleet of training aircraft is not inherently high or low without more context. For instance, larger, more complex aircraft or contracts with longer durations and broader scope could easily exceed this amount. Conversely, simpler support packages for smaller fleets might cost less. A detailed analysis would involve comparing the 'per aircraft' or 'per flight hour' cost against industry benchmarks and other government contracts.

What are the primary risks associated with a Cost No Fee (CNF) contract for logistics support?

A Cost No Fee (CNF) contract places the financial risk squarely on the contractor. While this can be advantageous for the government by capping costs, it introduces specific risks. The primary risk is that the contractor, facing potential cost overruns, might cut corners on quality, maintenance, or parts to stay within budget, potentially impacting aircraft readiness and safety. Another risk is contractor morale and retention; if the contractor consistently loses money, they may become demotivated or seek to exit the contract. Furthermore, the government may need to provide more detailed oversight to ensure that the contractor is not compromising essential services to manage costs. This contract type is typically used when the scope of work is well-defined and the contractor has significant control over costs.

What is the expected effectiveness of this contract in ensuring the operational readiness of the T-34/T-44/T-6 aircraft?

The effectiveness of this contract hinges on the contractor's ability to provide timely and quality logistics support as stipulated. By outsourcing these functions to Sikorsky Support Services Inc., the Department of Defense aims to leverage specialized expertise and potentially reduce the burden on its organic maintenance personnel and infrastructure. If the contractor performs effectively, it should lead to increased aircraft availability, reduced downtime for maintenance, and consistent adherence to operational schedules for pilot training. The 'Cost No Fee' structure incentivizes the contractor to manage resources efficiently. However, the effectiveness is contingent on robust oversight from the Defense Contract Management Agency to ensure that cost-saving measures do not compromise the quality and safety of the support provided.

How has historical spending on T-34/T-44/T-6 logistics support evolved, and does this contract represent a trend?

Analyzing historical spending trends for the T-34/T-44/T-6 logistics support requires access to historical contract databases and budget information. Without that specific data, it's difficult to determine if this $38.2 million award represents an increase, decrease, or stable level of spending. However, it is common for military training aircraft to require ongoing contractor logistics support throughout their service life. Factors influencing spending include aircraft age, operational tempo, modernization efforts, and changes in contracting strategies (e.g., moving from organic support to contractor support). This contract, awarded in late 2013 for a period ending in late 2014, likely reflects the ongoing need for such support. Future trends would depend on fleet sustainment plans, potential replacements, and evolving defense budget priorities.

What are the implications of awarding this contract via 'full and open competition' with only two bidders?

Awarding a contract via 'full and open competition' signifies that the government solicited proposals from all interested and capable sources. The fact that only two bids were received suggests that the market for this specific type of specialized contractor logistics support may be limited, or that the requirements were highly specific, potentially deterring some potential bidders. While competition is generally beneficial, having only two bidders means the government had less leverage to negotiate the best possible price compared to a scenario with numerous competitors. It raises questions about the breadth of the market and whether the solicitation process or contract requirements might have inadvertently restricted participation. Further analysis could explore if the technical specifications were overly restrictive or if the anticipated profit margins were insufficient to attract more bidders.

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: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 6900 MAIN ST, STRATFORD, CT, 06614

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $75,967,818

Exercised Options: $75,967,818

Current Obligation: $38,188,285

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001914D0003

IDV Type: IDC

Timeline