NASA Awards Northrop Grumman $93.2M for Aircraft and GCS Spare Parts and Support
Contract Overview
Contract Amount: $93,216,751 ($93.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2021-01-16
End Date: 2026-10-29
Contract Duration: 2,112 days
Daily Burn Rate: $44.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: PROVIDE AIRCRAFT AND GROUND CONTROL STATION (GCS) SPARE PARTS AND PROVIDE ENGINEERING, MAINTENANCE TECHNICIAN, LOGISTICS TECHNICIAN AND PILOT SUPPORT.
Place of Performance
Location: EDWARDS, KERN County, CALIFORNIA, 93523
Plain-Language Summary
National Aeronautics and Space Administration obligated $93.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: PROVIDE AIRCRAFT AND GROUND CONTROL STATION (GCS) SPARE PARTS AND PROVIDE ENGINEERING, MAINTENANCE TECHNICIAN, LOGISTICS TECHNICIAN AND PILOT SUPPORT. Key points: 1. This contract focuses on essential spare parts and technical support for aircraft and ground control systems. 2. Northrop Grumman Systems Corporation is the sole awardee, indicating a lack of competition. 3. The contract's Cost Plus Fixed Fee structure may lead to cost overruns if not managed carefully. 4. The sector is 'Other Support Activities for Air Transportation', a niche but critical area for aerospace operations.
Value Assessment
Rating: fair
The award amount of $93.2M for a period of over 5 years suggests a significant investment. Benchmarking against similar support contracts for complex aerospace systems is difficult without more detailed cost breakdowns, but the Cost Plus Fixed Fee structure warrants close monitoring.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning only one source was solicited. This limits price discovery and potentially leads to higher costs for the government compared to a competitive environment. The rationale for sole-source should be thoroughly documented.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these critical spare parts and support services.
Public Impact
Ensures continued operational readiness of vital aircraft and ground control systems. Supports specialized technical expertise for maintenance and logistics. Potential for extended contract duration and cost increases due to sole-source nature. Impacts NASA's ability to conduct its missions reliant on these assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of demonstrated small business participation
Positive Signals
- Provides critical support for aerospace operations
- Long-term contract duration ensures stability of services
Sector Analysis
This contract falls under 'Other Support Activities for Air Transportation', a specialized sector. Spending benchmarks are difficult to establish without more specific data on the types of aircraft and GCS involved, but support services for complex aerospace systems are typically high-value.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Efforts should be made in future solicitations to ensure opportunities for small businesses where feasible.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight from NASA to ensure fair pricing and effective service delivery. Regular performance reviews and cost audits will be crucial for accountability.
Related Government Programs
- Other Support Activities for Air Transportation
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPFF)
- Limited small business involvement
- Reliance on sole-source provider for critical support
- Long contract duration may not reflect evolving needs
Tags
other-support-activities-for-air-transpo, national-aeronautics-and-space-administr, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $93.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. PROVIDE AIRCRAFT AND GROUND CONTROL STATION (GCS) SPARE PARTS AND PROVIDE ENGINEERING, MAINTENANCE TECHNICIAN, LOGISTICS TECHNICIAN AND PILOT SUPPORT.
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $93.2 million.
What is the period of performance?
Start: 2021-01-16. End: 2026-10-29.
What is the justification for awarding this contract sole-source, and what steps were taken to ensure the best possible price was achieved?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. NASA should have conducted market research to confirm no other sources exist and negotiated the price rigorously, potentially using historical data or independent cost estimates to validate the Cost Plus Fixed Fee structure and fee percentage.
What are the potential risks associated with the Cost Plus Fixed Fee contract type in this context, and how are they being mitigated?
The primary risk with CPFF is that the contractor may not be incentivized to control costs as tightly as in other contract types, potentially leading to cost overruns. Mitigation strategies include strong government oversight, detailed performance metrics, regular audits, and clear definition of the fixed fee to ensure it is reasonable for the scope of work.
How will the effectiveness of the provided engineering, maintenance, and pilot support be measured to ensure mission success?
Effectiveness will be measured through key performance indicators (KPIs) such as aircraft availability rates, turnaround times for repairs, technician response times, pilot proficiency metrics, and successful mission completion rates. Regular performance reviews with Northrop Grumman will assess adherence to these KPIs and overall contract performance.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 17066 GOLDENTOP RD, SAN DIEGO, CA, 92127
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $126,119,517
Exercised Options: $107,789,060
Current Obligation: $93,216,751
Actual Outlays: $84,755,948
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $1,034,359
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 80AFRC21D0002
IDV Type: IDC
Timeline
Start Date: 2021-01-16
Current End Date: 2026-10-29
Potential End Date: 2026-10-29 00:00:00
Last Modified: 2026-03-17
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