DoD's $275.8M CH-53E ASE Upgrade Contract Awarded to Northrop Grumman Under Full and Open Competition
Contract Overview
Contract Amount: $275,757,789 ($275.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2007-05-23
End Date: 2011-01-31
Contract Duration: 1,349 days
Daily Burn Rate: $204.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: CR-1636, "CH-53E AIRCRAFT SURVIVABILITY EQUIPMENT (ASE) UPGRADE"
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $275.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: CR-1636, "CH-53E AIRCRAFT SURVIVABILITY EQUIPMENT (ASE) UPGRADE" Key points: 1. The contract focuses on upgrading survivability equipment for the CH-53E Super Stallion helicopter. 2. Northrop Grumman Systems Corporation, a major defense contractor, received the award. 3. The award was made under a full and open competition, suggesting a competitive bidding process. 4. The contract falls under Research and Development in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: fair
The contract value of $275.8M for an aircraft survivability upgrade appears significant. Benchmarking against similar complex defense system upgrades would be necessary to fully assess its pricing reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a broad range of potential bidders. This method is generally expected to yield fair market prices.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by driving down costs through market forces.
Public Impact
Enhances the survivability of critical military aviation assets. Supports the operational readiness of the U.S. Marine Corps. Represents a significant investment in advanced defense technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 1349 days (over 3 years) may indicate potential for cost overruns or scope creep.
- Time and Materials (T&M) contract type can sometimes lead to higher costs if not closely managed.
- Lack of specific small business participation noted.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process.
- Focus on survivability equipment directly impacts mission success and personnel safety.
- Contract awarded to a reputable defense contractor with relevant experience.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on R&D for military aircraft components. Spending in this area is driven by national security needs and technological advancements.
Small Business Impact
The data indicates that small business participation was not a stated factor in this contract award (ss: false, sb: false). Larger prime contractors often manage subcontracts, but direct small business involvement is not evident here.
Oversight & Accountability
The contract was awarded by the Department of Defense, which has established oversight mechanisms for major procurement programs. However, the effectiveness of oversight for this specific contract would depend on program management and reporting.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Long contract duration may increase risk of scope creep or obsolescence.
- Lack of explicit small business participation.
- Dependence on a single prime contractor for critical survivability upgrades.
Tags
research-and-development-in-the-physical, department-of-defense, va, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $275.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. CR-1636, "CH-53E AIRCRAFT SURVIVABILITY EQUIPMENT (ASE) UPGRADE"
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $275.8 million.
What is the period of performance?
Start: 2007-05-23. End: 2011-01-31.
What specific survivability enhancements does this upgrade provide, and how do they demonstrably improve aircraft survivability against current and projected threats?
The upgrade likely incorporates advanced countermeasures, improved sensor suites, and potentially hardened components to protect the CH-53E against threats such as infrared missiles, radar-guided weapons, and electronic warfare. Quantifiable improvements would be measured by reduced vulnerability metrics, increased mission success rates in contested environments, and enhanced crew protection, often validated through rigorous testing and simulation.
Given the Time and Materials contract type, what measures are in place to control costs and prevent potential overruns throughout the contract's duration?
Effective cost control for T&M contracts relies on robust government oversight, including detailed monitoring of labor hours, material costs, and indirect rates. Establishing clear ceilings, requiring regular progress reports, and implementing performance-based incentives can help mitigate risks. Independent cost estimates and audits are also crucial for ensuring fair pricing and preventing unwarranted expenditures.
How does the performance of Northrop Grumman on this contract compare to their historical performance on similar complex defense system upgrades in terms of cost, schedule, and technical delivery?
Assessing Northrop Grumman's performance requires analyzing historical data on similar contracts, looking at metrics like cost variance (actual vs. planned), schedule adherence (on-time delivery), and technical success rates (meeting specifications). Benchmarking against industry averages and their own past performance provides insight into their reliability and efficiency in delivering complex defense solutions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $275,757,789
Exercised Options: $275,757,789
Current Obligation: $275,757,789
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0703DB008
IDV Type: IDC
Timeline
Start Date: 2007-05-23
Current End Date: 2011-01-31
Potential End Date: 2011-01-31 00:00:00
Last Modified: 2015-04-27
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